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Xie Enwei, general manager of management and operations of Microsoft in China, promotes the Xbox One at in Shanghai on July 30, 2014. China has just allowed sales of game consoles, but its consumers may bristle over the high cost of a Xbox – 50 per cent over the U.S. price.
Xie Enwei, general manager of management and operations of Microsoft in China, promotes the Xbox One at in Shanghai on July 30, 2014. China has just allowed sales of game consoles, but its consumers may bristle over the high cost of a Xbox – 50 per cent over the U.S. price.
(CARLOS BARRIA/REUTERS)

Microsoft’s China foray stuck in the ruts

Xbox gamers fear the “red ring of death,” a flashing light that can herald system failure. Microsoft, which makes the consoles, must be awaiting a similar sign in China. After 22 years, the tech giant has achieved little in the country, which looks to account for around 2 per cent of revenue. Cloud services may multiply that over time, but political headwinds are raising the cost of business – possibly too high.