The Xbox One isn't the only console Microsoft is working on, according to reports of a deal made with Shanghai entertainment and electronics giant BesTV.
According to Chinese news agency Xinhua, the two companies have struck an agreement that gives BesTV a 51 percent share in a joint venture called E-Home Entertainment Development, with Microsoft taking the remaining 49 percent.
"This is the first step of many to come for Microsoft and BesTV," said a Microsoft spokesperson.
"We look forward to exploring new opportunities for bringing entertainment offerings to China, but we have no further details to share."
This is big news for companies trying to break into the booming Chinese games market, and comes soon after the government lifted a ban on the import and sale of consoles.
BesTV sells and manufactures electronics like smart TVs and also offers entertainment services.
It currently holds Chinese TV rights for major properties like the English Premier League.