Microsoft has said that Xbox One will go on sale in China in September.
It is the first foreign company to announce the sale of its consoles in China after the country lifted a 14-year old ban in January this year.
Microsoft will launch the console in collaboration with BesTV New Media Co, a subsidiary of Shanghai Media Group.
China's gaming market, which is currently dominated by PC, mobile and online games, is seen as a key growth area for console makers.
"Launching Xbox One in China is a significant milestone for us and for the industry," said Yusuf Mehdi, corporate vice-president at Microsoft.
It still has yet to be seen what games China will allow for sale legally. This is a major move by Microsoft and we at CGM expect other companies to follow suit.
No expected selling price has been disclosed by either company.