Microsoft partners to create Chinese game console

Microsoft and Chinese media company BesTV New Media Co., Ltd, are partnering to bring a new gaming console and streaming device to China. According to Xinhua News, BesTV posted the news on the Shanghai Stock Exchange. The new venture, E-Home Entertainment Development, will be 51 percent owned by BesTV and 49 percent owned by Microsoft. The total investment in the joint venture is $237 million.

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

Other unconfirmed reports found by Polygon say the new console will be based on Xbox technology and be called the Bestpad. BesTV is China's leading IPTV provider with 18 million IPTV subscribers in China, southeast Asia and eastern Europe. The company just recently acquired the five-year, exclusive broadcast rights for the Premier League.

For a long time, China had a ban on the production and release of game consoles from non-Chinese companies, but that ban is expected to be lifted soon. Companies will now be able to produce their consoles within Shanghai's planned free-trade zone.