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Xbox One distributor reports losses as sales fail to pick up in China

Syriel

Member
My assumption had been that the subsidiary companies made to distribute these consoles were for the sole purpose of that and any other activity required to achieve that [game certification etc.]

Although as Syriel points out it would seem the scope for that particular subsidiary company is in fact described as larger than simple distribution and everything that entails. Whether or not the subsidiary company is actually actively doing all those other activities described is in question I suppose.

The consoles themselves have to be activated through BesTV.

If you just have an Xbox Live account you cannot get through the initial setup.

http://www.bestv.com.cn/index.php?m=content&c=index&a=lists&catid=218

At the very least they are customizing the software load on the console.

You also have programming costs (delivering content via IPTV) that other regions don't have on the Xbox One.

Is a pure "distributor" going to be delivering movies, providing developer support, signing deals to get exclusives, etc.?
 

Kallor

Member
Japan is a different country from China. Crazy, i know.

I remember my brother and I talking to a guy we knew and we started talking about the japanese tsunami and this guy starts laughing and going on about "those stupid Chinese people" and my brother and I just look at each other for a second then we correct him and say were talking about Japan and he nods like 'Yeah..I know' and then resumes laughing about the Chinese and then starts talking about pearl harbor. We just walked off and then ignored the guy from then on until he figured out that we wanted nothing to do with him.
 
Is a pure "distributor" going to be delivering movies, providing developer support, signing deals to get exclusives, etc.?

No that wouldn't be pure distribution however if in fact that subsidiary only handles operations, be that distribution, certification, software development, that pertain to the XB1 then any loss that subsidiary sustains would still be attributed to the XB1's performance in China.

It is at least possible that subsidiary does something for some other product or service line other than XB1 in some capacity although I do find it very unlikely.
 
Pretty much the only country that might save the thing is the US like it's always been. ;P

The Xbox doesn't need saving, but it DOES need evaluating. MS can keep the Xbox game going as long as they want to, the question is, is it worth it for them to do that?

I've always felt Microsoft would've made a tremendous software publisher. Going into hardware was a bad idea for them.
 

Chobel

Member
I've just had a look at the PDF.

It's certainly talking about Bes TV Xbox division for hardware, software and entertainment apps distribution on Xbox.

On page 139 it mentions that Xbox division specifically with a loss of 17,244,756.7 yuan.

The company seems to be related to hardware, software and services just on Xbox One according to the PDF. They say it's basically joint with Microsoft.

The quote from the PDF is quite literally - "The company set up a joint venture with Microsoft co-Shanghai Information" and they describe the revenue as for Xbox hardware, software, services, marketing etc.... Basically only Xbox and MS stuff

Quoting this for the new page, the division is only about Xbox One.
 

Lynn616

Member
Quoting this for the new page, the division is only about Xbox One.

I will take ZhugeEX word for it. I cant translate that PDF. So if ZhugeEX is right we know that the division lost money in the launch quarter. Still dont know anything new about units sold good or bad.
 

demigod

Member
Gonna be a really hard country to crack.

Dont expect the PS4 to sell much more than that tbh.

If anything, it would sell twice more easily.

If its a joint venture with ms, how are they losing so much money? Not like they're buying a million xboxes and not able to return it.
 

ZhugeEX

Banned
I will take ZhugeEX word for it. I cant translate that PDF. So if ZhugeEX is right we know that the division lost money in the launch quarter. Still dont know anything new about units sold good or bad.

It mentions "Exceeding" 100,000 units sold in.

But tbh grey market will still count for a lot.

Xbox 360 for example is estimated to have sold in 450k in 2005/2006 across grey market. The sales were quite high due to modded 360 being available and low price.

We know official sales of Xbox One are over 100k+ but we don't know grey market sales. I'll be honest though, due to price and lack of mods I doubt grey market sales for Xbox One will be great.
 

4Tran

Member
Gonna be a really hard country to crack.

Dont expect the PS4 to sell much more than that tbh.
Even so, all the big players have to try. China is the second biggest country in the world by video game revenue, and everyone wants a piece of that pie. The PS4 has a much better reputation in Asia, so it should do better than the Xbone. However, its sales in the first couple of years will still be modest. And if the Chinese gaming population can be convinced into buying into console gaming price structures, there's a chance it can take off.
 

ShdwDrake

Banned
Did you read your own link?

Devices and Studios Group

The Devices and Studios group is responsible for most of Microsoft's hardware products and development.
Xbox

Microsoft entered the game console market dominated by Sony and Nintendo in late 2001, with the release of the Xbox. The company develops and publishes its own video games for this console, with the help of its Microsoft Game Studios subsidiary, in addition to third-party Xbox video game publishers such as Electronic Arts and Activision, who pay a license fee to publish games for the system. The Xbox also has a successor in the Xbox 360, released on 2005-11-22 in North America and other countries.[3][4] With the Xbox 360, Microsoft hopes to compensate for the losses incurred with the original Xbox. However, Microsoft made some decisions considered controversial in the video gaming community, such as selling two different versions of the system, as well as providing backward compatibility with only particular Xbox titles.[5][6]

Microsoft Mobile Oy

Formally Nokia's Hardware division, this group is in charge of developing the Lumia line of Windows Phones

Microsoft Hardware

Microsoft also markets a number of other computing-related hardware products as well, including mice, keyboards, joysticks, and gamepads, along with other game controllers, the production of which is outsourced in most cases.[2]
Surface

This group also develops the Microsoft Surface and Microsoft Surface Pro tablets that run Windows RT and Windows 8 respectively.

Yeah like he said. XBox division is not the group ad you just pointed out.
 

Ricky_R

Member
cgCuiQW.jpg
 

BocoDragon

or, How I Learned to Stop Worrying and Realize This Assgrab is Delicious
Asians hate Xbox even more than the number 4 or sleeping with the fan on.
 

Big-E

Member
You have to talk about selling hardware and software at cheaper rates if you want to move meaningful numbers. You also have to give a reason to them to voluntarily stop playing lol and cf.
 

TheSeks

Blinded by the luminous glory that is David Bowie's physical manifestation.
http://s3-ec.buzzfed.com/static/2014-07/23/8/enhanced/webdr04/anigif_enhanced-25796-1406117445-12.gif

I understand this reference.

I wonder how much this lack of sales has to do with the Chinese government forcing MS to lockdown/region lock the X-box 720 to where the Chinese couldn't import non-censored titles.
 

Dazza

Member
I wonder how much this lack of sales has to do with the Chinese government forcing MS to lockdown/region lock the X-box 720 to where the Chinese couldn't import non-censored titles.


It's easily obtainable through the grey market anyway. The Playstation 4 will have the same problem when it launches in China, I only expect it to sell around 5 times as much as the Xbox One has sold and to be equally dwarfed by the grey market
 

Freeman

Banned
I've always felt Microsoft would've made a tremendous software publisher. Going into hardware was a bad idea for them.
The Xbox would have made way more sense if MS was committed to bridging console and PC, if this was ever their intention they were just too slow about doing it, they pretty much got schooled by Valve as a result, now not only must they compete against Sony and Nintendo but also Valve.
 

Yudoken

Member
The do not see the benfits of the consoles, they're way more strict and do not feature a lot of games for a good price.
Better have a pc, you can play way morte games for cheaper money expecially there.
I mean consoles doesn't even make sence here in the west, they're currently so uneccessary.
 
I understand this reference.

I wonder how much this lack of sales has to do with the Chinese government forcing MS to lockdown/region lock the X-box 720 to where the Chinese couldn't import non-censored titles.

It is a massive amount to do with this. Why buy a console that's restricted as hell for only a few dollars less than an imported one that will allow you to do everything that you can do on a US version? My Chinese friends had Xbox Ones and PS4s a week after they hit the stores in the US.

But man, seriously - "X-box 720" - we've known the name for a good three years now, have we not?

Frankly, anybody who reported that China was going to "save" any console needs to have their credentials revoked.
 

Jomjom

Banned
I know zero friends and family in Taiwan or China who want an Xbox. Everyone is PC first and then if they get a console its Playstation. Xbox isnt even a consideration.
 

Cipherr

Member
The WiiU needs saving. The Vita could use some saving.

Neither the PS4 nor the One need "saving" guys.

Learn the difference between "not being in 1st place" and "DOA". Console wars have you all playing extremes where they don't fit.
 

Freeman

Banned
Ignoring people who think that a console which will end up with a 70million+ installed base needs to be "saved", perhaps?
Sorry but that just ain't gonna happen. The Xbox had to drop below 350$ and bundle more than one game to keep pace at pretty much the only region it stands a chance.
The WiiU needs saving. The Vita could use some saving.

Neither the PS4 nor the One need "saving" guys.

Learn the difference between "not being in 1st place" and "DOA". Console wars have you all playing extremes where they don't fit.
If you can't face the reality of how unsuccessful Xbox has been so far it seems you are more invested in console wars than the people you accuse.
 
The Xbox would have made way more sense if MS was committed to bridging console and PC, if this was ever their intention they were just too slow about doing it, they pretty much got schooled by Valve as a result, now not only must they compete against Sony and Nintendo but also Valve.

You know if MS had beaten Valve to the "Steam punch" they could've really went places.

They should've focused on that over a console.

MS could've made a killing marketing a "Steam-like" platform to major competitors like Nintendo, Sony, hell even Sega back in the day.
 
Probably In your imagination

FWIW, the memory of my debate with Hindle over how he thinks MS should have a chinese character in Halo 5, and his optimism about how China will respond better to the brand than most would assume is still one of the funnier memories of my time in GAF.
 

Jomjom

Banned
You know if MS had beaten Valve to the "Steam punch" they could've really went places.

They should've focused on that over a console.

MS could've made a killing marketing a "Steam-like" platform to major competitors like Nintendo, Sony, hell even Sega back in the day.

MS could have beaten Valve to the "Steam punch" but it never would have been with a Steam like service. It would have been with GFWL. MS would absolutely not approve of many of Steam's policies with respect to digital games.
 
Pretty sad I have seen X1 fans here on Gaf banking on the Chinese market to help boost X1 sales globally and so far that sadly hasn't been the case.
 

Rymuth

Member
Ignoring people who think that a console which will end up with a 70million+ installed base needs to be "saved", perhaps?
360 managed to reach 85+ after utterly decimating the PS3 in the US and winning the UK.

How the hell is the Bone going to match that when it lost both territories? Keep dreaming.
 
well if the bone has already surpassed 100k unit sales in china then that far exceeds their sales total to date in Japan.

At the very least it's a sliver of positivity in a region they're having a difficult time gaining traction.
 

Qvoth

Member
Anybody who wants ps4 or xbone in China probably already has them by now, even ps4 isn't going to sell well there
In China f2p is king
 
The Tech in Asia article mention that less than 200 XB1s were sold on Tmall last month. If you don't know Tmall it is a major online retailer with hundred of millions of users, it has even higher rank on Alexa than eBay.
 
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