Microsoft China was fined by the Ministry of Commerce last week as the company was celebrating the one year anniversary since the launch of Xbox One in the country. Both Microsoft and their business partner, Shanghai Oriental Pearl Media co, who were responsible for launching the Xbox One in the country were both fined by the Government.
Both companies were fined ¥200,000 which is equivalent to around $30,000 for failing to report to antitrust regulators that the joint venture had reached a market share threshold that usually requires disclosure to the government.
The Investigation did not find Xbox guilty of any serious violation of anti trust rules nor did they find Microsoft guilty of hindering free market competition, hence why the fine was not harsher. Microsoft have faced a number of challenges since launching in China, the most prominent issue being that they lost over $2.75 million in their first quarter of operation.
The Xbox One shipped 100,000 units at launch last year but Microsoft have refused to update this figure. It’s generally accepted that the PlayStation 4, which launched 9 months later, has sold more units than the Xbox One in China due to its considerably cheaper price.