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.