Xbox 360 In China Next Year

The U.S., Europe, and Japan are getting ahold of Microsoft's next console this year, but China will have to wait until 2006, reports Gamasutra. From the article: "Obviously, it's somewhat unclear that the majority of China's workforce would be able to afford such a console - the average wage of an urban worker in China in 2004 was 9,422 yuan ($1,164), and a rural worker made just 2,936 yuan ($363) on average. Nonetheless, Microsoft is keen to make a symbolic move into the territory, as Sony did in December 2003 when it launched the PlayStation 2 in four major Chinese cities, to as yet unrevealed sales figures. Nintendo is trying a different strategy, with its license to iQue for the release of specially branded, localized Nintendo 64, Game Boy, and even Nintendo DS products in Chinese territories."

Re:Wages+cost

[AuMatar]

College students make that on top of tuition and room and board. And many have parents money to fall back on

Microsoft needs to learn something.

[OmgTEHMATRICKS]

People are not going to pay a year's salary for a gaming machine.

You'd be surprised

[ToastyKen]

Last time I was back in China, I was amazed... You see, people there tend not to blow lots of little money in bars, etc... Instead, they tend to save up for big purchases, so that you often see people who make something like US$150 a month with a $250 digital camera just because they're "in".. I mean, that'd be like someone here paying a few thousand dollars for a digital cameara... Most people wouldn't do it here, but you could imagine it being affordable if you saved up. Well, in China, people are willin

Huh...

[porcupine8]

Nintendo is trying a different strategy, with its license to iQue for the release of specially branded, localized Nintendo 64

So Nintendo is actually going to offer to sell them something that some of them might be able to afford? Truly Revolutionary.

Re:Huh...

[YOU LIKEWISE FAIL IT]

It's actually better still. The console comes with a flash cartridge, which the players can take to N-authorised retailers to load with games - as this cuts out the "cartridge manufacturing" side of things, and so the games can cost less too. And of course, N can ship timebombed demos, etc, resell the same product to the same consumer over and over and so on and so forth.

I think the iQue is a really interesting idea - I'll be watching to see if it ever jumps out of China, say to Japan or perhaps Brazil, w

Uhh, guys...?

[Otter]

Obviously, it's somewhat unclear that the majority of China's workforce would be able to afford such a console - the average wage of an urban worker in China in 2004 was 9,422 yuan ($1,164), and a rural worker made just 2,936 yuan ($363) on average.

I'm no marketing genius, but have you considered that in a country with a billion people and a ballooning upper class of conspicuous consumers, one might be able to market a modest luxury good, even if it's not within the budget of the average peasant?

How much do they make?

[Hamster Lover]

the average wage of an urban worker in China in 2004 was 9,422 yuan ($1,164), and a rural worker made just 2,936 yuan ($363) on average.

Average what? Year? Month? Day? Huge difference there. I guessed that the article was referring to the average yearly salary and checked the web, but it would help if the article was clear about this in the first place. Anyway, no wonder piracy is rampant in China. At a salary of a little over $1000/year (for an urban worker) who could afford the Xbox, a game, or even a DVD

Re:How much do they make?

[superpulpsicle]

30 million out of 1.3 billion people in China owns a car. The rest simply can't afford it. This group makes anywhere from $20,000 to $200,000 a year. This is still a significant market to sell to.

Re:Uhh, guys...? 50 000 have 10 million

[tiggles]

According to Ferrari's marketing department, there are 50 000 Chinese people with net worth's of more than 10 million USD (their target market). I've seen 3 Ferrari stores in Shanghai today, so I think they're serious.

don't worry

[coughman]

cause the Chinese will make the bootlegged version soon.

Just 1%

[ribblem]

Obviously, it's somewhat unclear that the majority of China's workforce would be able to afford such a console - the average wage of an urban worker in China in 2004 was 9,422 yuan ($1,164), and a rural worker made just 2,936 yuan ($363) on average.

I'm pretty sure Microsoft would be happy to have just 1% of a market place with well over a billion people. Now if they could somehow get up to 5% they'd have sold more xbox 360s than Sony has sold PS2s so far.

Isn't piracy the other bigissue?

[nobodyman]

I've always thought that piracy was a bigger issue than average income, though I imagine that the relative high price is at least part of the reason for the piracy in the first place. China in the past has turned a blind eye to copyrights and IP. Has this changed? For example, I remember reading that the PS2 didn't officially release in china for several years after it's introduction in Japan, but pirated ps2 hardware and games were widely available.

Another thought: seeing as how Xbox could potentially sold for less cost due to the lack of tariffs and shipping costs (they are manufactured in China in the first place) -- and given the fact that you pretty much would have to sell the product and a substantially lower price to get any kind of widespread adoption -- I wonder if M$ is concerned that the grey market could sell chinese xboxen could at a lower price than the "legal" retail channels.

Is there an economist in the house?

Re:Isn't piracy the other bigissue?

[Haeleth]

For example, I remember reading that the PS2 didn't officially release in china for several years after it's introduction in Japan, but pirated ps2 hardware and games were widely available.

Um. The games I can understand, but how do you pirate hardware? I can see only three scenarios:

1. Real piracy. Gangs of Chinese sailors with eyepatches board cargo ships carrying PS2s that were intended to bring a little bit of joy into the lives of American orphans, callously slaughter the crew, and haul the booty awa

Re:Isn't piracy the other bigissue?

[ElleyKitten]

hardware can't be pirated, but as I understand, china has plenty of cheap consoles, gotten in ways their makers didn't want them to. I think the part where they make the consoles helps them get them.

Re:Isn't piracy the other bigissue?

[nobodyman]

Emphasis mine...

3. No piracy at all, but you used the word anyway because it sounds more serious that way. Maybe some kind of "grey market" import, or employees secretly flogging defective stock that Sony thought had been dumped in a landfill. Or whatever.

Ah, number three was close, but you forgot option 4: I specifically chose that precise wording to lure you out of your hidey-hole and grace us with your varied interpretations of my choice of the word "pirate". Not that I only had a few minutes left of

Re:Isn't piracy the other bigissue?

[UltimaL337Star]

I'm sure it's much harder to fit an x360 into any cd writer you could find in china, I have no clue what you'd use as the destination blank media.

averages are misleading

[marcybots]

the average income is low, but that doesnt mean there will not be many people in a land of 1.2 BILLION to make money off of. Some Chinese probably make a very good living, while others wash dishes for 10 cents an hours in the same town, China has an amazing amount of income disparity between cities, regions etc, some towns like Chonquing are relatively wealthy and affluent while many older industrial cities are poverty stricken...its not like they have a minimum wage in china.

...with one slight modification.....

[spepper]

Communist China will allow the sale of the XBox 360 there, but with one slight modification: the splash screen that flashes before the bootup will display the following message: YOU ARE BEING WATCHED