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American McGee of Spicy Horse took to Facebook to explain exactly why releasing the Xbox One in China will be a mistake. Microsoft has announced that they plan to launch their new console in China by September, but McGee strongly believes the console will crash as the market is already dominated by free-to-play mobile and PC games.
McGee goes as far as to compare the launch to "selling sand at the beach," because these consoles are already available to anyone who wants them from the gray market. He also pointed out that China is already saturated with cheaper Android-powered consoles that run far cheaper games.
There's a chance McGee might know what he's talking about, as he's lived in Shanghai for several years.
McGee also points out the huge piracy problem in China, the fact that families would rather spend money on education over a new console, and the government's tendency to censor most big-named games.
"I could make more points..." McGee said. "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."[Source]
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