Microsoft Corp. says it is launching the system through a partnership with BesTV New Media Co., a subsidiary of Shanghai Media Group. Microsoft says the system will be available throughout China.
Video game consoles are technically banned in the country, but Microsoft was able to get around this by working with BesTV, which is part owned by the Chinese government. Microsoft and BesTV have a joint video game venture called E-Home Entertainment. It was the first company registered in China's Shanghai free-trade zone.
Microsoft says the Xbox launch is a "significant milestone" for the company and the industry.