Among those rules is the requirement for foreign companies to work with local organizations to produce consoles within the Shanghai Free Trade Zone, which Microsoft can fulfill thanks to its partnership with Chinese media company BesTV. The Xbox One manufacturer teamed up with BesTV in September 2013 to create E-Home Entertainment. Microsoft holds a 49 percent stake in E-Home and BesTV holds 51 percent, both combining to invest $237 million. E-Home Entertainment plans to establish an "innovation program" that will foster Chinese development on Xbox One.
Microsoft launched the Xbox One in 13 regions in November and announced plans last month to bring the system to 26 more markets in September (with China now making that 27).