American McGee Predicts The Xbox One’s Failure in China

Spicy Horse founder American McGee has written an interesting list on Facebook explaining why he thinks the Xbox One will not be successful in China when it is released in the region this September. Earlier this week Microsoft announced that its latest console would finally be available to the lucrative Chinese gaming market, but McGee has lots of doubts that the console can be successful in a market dominated by free-to-play mobile and PC games and a thriving gray market.

McGee compared Microsoft's plans to "selling sand at the beach" because consoles are readily available for Chinese gamers that want them via the gray market. He also argued that the market is packed with cheaper Android-powered set top boxes already, and that "99 per cent of streaming content is consumed on mobile devices or PCs."

McGee, who has been based in Shanghai, China for a number of years, is intimately familiar with how things work in China.

Another major concern raised by McGee for the console is competition from lesser legal avenues such as the gray market where consumers can easily buy systems and software for a lot cheaper.

"Piracy. If you've not seen it in China, you've not seen anything. It's massive, awe-inspiring, and will poke giant holes in even the best digital content plans."

McGee also points out that parents who could afford Microsoft's new console are more interested in spending that money on their children's education.

Another problem raised is the government's inevitable censorship of big games that they think do harm to children or are offensive to Chinese culture.

"I could make more points…" McGee continued. "Chinese consumers are addicted to mobile phones, gamers get their kicks online, consoles are dead, etc, etc… but there's no stopping a dinosaur. I'll just leave it at five."

You can read all of McGee's points here.

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