Tue, Jul 29, 2014 - Page 15 News List

Tencent, JD.com take Xbox One pre-orders

Bloomberg

A crowd gathers around a big screen as gamers play Sunset Overdrive on an Xbox at annual E3 video game extravaganza in Los Angeles, California, on June 10.

Photo: AFP

Tencent Holdings Ltd (騰訊) teamed up with online retailer JD.com Inc (京東) to take pre-orders of Microsoft Corp’s Xbox One yesterday, the first legal sale in 14 years of a major game console in China.

JD.com has exclusive rights until tomorrow to pre-sell the locally made Xbox, the company said in a news release. The offer, which requires a deposit of 499 yuan (US$81), will be available only to those who click through links to the online retailer from the Chinese versions of Tencent’s WeChat and QQ mobile-messaging apps. The console is scheduled to start shipping nationwide in September.

Microsoft was the first major console maker to take advantage of a decision by the Chinese government last year to allow sales of the gadgets in the new Shanghai free-trade zone. The ban, which the central government instituted in 2000 over concerns about the consoles’ perceived impact on children, has allowed online games hosted by Tencent, Asia’s largest Internet company, and others to flourish.

Duncan Clark, the Beijing-based chairman of BDA China Ltd (博達克諮詢), which advises technology companies, said Tencent and JD.com were well positioned to benefit from the policy shift.

“For Xbox, Tencent is the most established games distributor, and, for JD, it’s logistics, shipping and quality control,” Clark said. “So it makes a lot of sense.”

JD.com spokesman Josh Gartner would not disclose the number of Xbox Ones the company was selling nor the price.

“Launching Xbox One sales in China through JD.com’s Weixin and Mobile QQ entry points underscores the strength of these platforms with young and sophisticated Chinese consumers,” JD.com vice president Du Shuang (杜爽) said in the news release, using the Chinese name for Tencent’s WeChat.

JD.com will begin directly accepting pre-orders for the new Xbox through its Web site and its exhibition booth at the ChinaJoy Expo in Shanghai on Thursday, the company said.

Microsoft formed a US$79 million joint venture with BesTV New Media Co (百視通新媒體), a unit of Shanghai Media Group Inc (上海文廣集團), in September to begin making Xbox consoles in the free-trade zone for the Chinese market. BesTV invested US$40.3 million for a 51 percent stake in the enterprise, while Microsoft put in US$38.7 million, according a September filing.

China’s video-game industry will generate about US$10 billion in sales next year, PricewaterhouseCoopers LLP said.

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