Microsoft and BesTV will reportedly invest $237 million into the venture, with Microsoft retaining a 49 percent share.
The service, currently called E-Home Entertainment Development, will launch in Shanghai, and will “develop games and related services.”
A Microsoft spokesperson said they did not have any further details, but did say, “This is the first step of many to come for Microsoft and BesTV. We look forward to exploring new opportunities for bringing entertainment offerings to China …”
Earlier this summer it was reported that China was making plans to end a decade-long ban on video game consoles. The new “free-trade zone” in Shanghai will allow Microsoft to finally venture into China in terms of console gaming.