Microsoft aligns with Chinese company for new games device

Xbox maker forms joint venture with Shanghai media behemoth BestTV to release streaming device in China.


Microsoft and Shanghai media giant BesTV have formed a joint venture to launch a new games device that will offer streaming entertainment services in China, it has been announced.

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In a note posted on the Shanghai Stock Exchange (via Polygon), both companies detailed the "family games and related services" initiative--E-Home Entertainment Development--which will be supported by an initial investment of $237 million.

Chinese media reports, which have not been confirmed, claim the new partnership will result in a console based on Xbox technology and called "Bestpad." BesTV is a leading Internet and television provider in China. It also manufactures and sells smart TVs.

This news follows China's recent decision to end its 13-year console ban. Under the terms of the decision, game consoles can be sold in China so long as they are made in Shanghai's new free-trade zone and approved by "culture-related authorities."

This new venture is expected to be registered in this newly established free-trade zone.

"This is the first step of many to come for Microsoft and BesTV," a Microsoft spokesperson told Polygon. "We look forward to exploring new opportunities for bringing entertainment offerings to China, but we have no further details to share."

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