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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."
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?
What I'm listening to now on Pandora...
cause the Chinese will make the bootlegged version soon.
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.
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? Even pirated DVDs or games costing a few dollars have to be budgeted for when you make $97 a month. It's a reality that I did not recognize until now.
I've always thought that piracy was a bigger issue than average income, though I imagine that the relative high price is at least part of the reason for the piracy in the first place. China in the past has turned a blind eye to copyrights and IP. Has this changed? For example, I remember reading that the PS2 didn't officially release in china for several years after it's introduction in Japan, but pirated ps2 hardware and games were widely available.
Another thought: seeing as how Xbox could potentially sold for less cost due to the lack of tariffs and shipping costs (they are manufactured in China in the first place) -- and given the fact that you pretty much would have to sell the product and a substantially lower price to get any kind of widespread adoption -- I wonder if M$ 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?
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.