Microsoft Utilizing China To Keep Up

In the EngagingChina Blog, Geoff Nairn writes that:

“In a puzzling move for the world’s biggest software company, Microsoft has paid 94m yuan for a small stake in China’s second largest TV manufacturer, Sichuan Changhong Electric Company.”

I don’t know what exactly is so crazy about Microsoft getting “into bed” with the second largest TV manufacturer in China. I think it is quite obvious what Microsoft is trying to accomplish.

Microsoft TV

In the wake of the Apple TV release early this year, Microsoft is attempting to keep up with Apple in the Home Entertainment sector. The technology they are hoping to develop in tandem with Sichuan Changhong Electric Company, through the ‘Media Galaxy Project’, is most likely going towards competing with the Apple TV.

Another application would be in taking control of one of Microsoft’s true advantages over Apple: The X-box. Linking up to the internet is one of the defining qualities of the X-box and sounds exactly like the kind of experience the ‘Media Galaxy Project’ is trying to improve and expand. When you look at it like this, the move is less “puzzling” than it is transparent.

One Response to “Microsoft Utilizing China To Keep Up”

  1. I think that when you consider the fact that XBox is currently not allowed in China, Microsoft’s move may look slightly less puzzling. I think that it is more of a hedge to ensure that the company can begin to realize its goal of fully integrating the computer, internet and TV in China, while it awaits regulatory change on video game consoles. Otherwise, they may miss the boat in China, with local companies like Shanda already pursuing similar strategies.