This comment is in response to Chin Chun (Nigel) Tsaur’s Blog post: “Xbox beats competitors to Chinese Market” (https://blogs.ubc.ca/cctsaur/)

Videogames are now a big part of the children of generation Y and even for the young adults of generation X (the time in which the videogame industry accessed the market). The games made by the different companies (Microsoft, Sony, Nintendo, being the major companies) can be violent, have sexual scenes, but they also be educational and help children learn while having fun. This is what the Chinese government realized on January and lifted the 14-year console ban law they had imposed.

As Chin Chun mentions, Microsoft has done a very strategic and beneficial move positioning as a monopoly in the videogame industry in China allowing them to have huge profits. Although I don’t agree when Chin Chun says that the lack of knowledge in consumers and the restriction on the content of games will be drawbacks because what these children want is to play videogames, it really doesn’t matter what they will buy. It was a restriction before and now they have the opportunity to use it thus, they will be driven by their emotions and will use any method to convince their parents to buy them an Xbox One.

In other words, I do not see any big drawbacks that Microsoft can have in this new market segment. Until Sony and Nintendo join the Videogame market in China, Microsoft will generate huge revenues.