The WSJ reports,"BEIJING—Internet conglomerate Tencent Holdings Ltd. will use its alliance with JD.com Inc. to offer early advance sales of MicrosoftCorp.'s Xbox One consoles in China, as the online retailer ramps up efforts to compete with electronic-commerce major Alibaba Group Holding Ltd.
Beijing-based JD.com said Monday that users of Tencent's WeChat and mobile QQ messaging software would be able to reserve the new Xbox with a deposit of 499 yuan ($81), days before the company begins taking preorders from other Chinese consumers on July 31. Microsoft has said the consoles would be delivered in September.
JD.com didn't disclose a price for the console. The new Xbox costs up to $500 in the U.S.
JD.com said it would presell the consoles to users who connect to its retail outlet through Tencent's QQ and WeChat social-media networks.
"Launching Xbox One sales in China through JD.com's Weixin and Mobile QQ entry points underscores the strength of these platforms with young and sophisticated Chinese consumers," said Shuang Du, a JD.com vice president. Weixin is the Chinese name of Tencent's WeChat mobile social-media app. The preorders will be available only through the Chinese version of the software.
JD.com's use of WeChat offers a glimpse into how Tencent can leverage its sprawling investments to cross-promote its services and pursue the country's more than 500 million smartphone users. Unlike in the U.S., where Internet companies have generally focused on no more than a few core competencies, Chinese companies have long wanted to focus on many areas.
Tencent is increasingly competing with China's Alibaba, which is by far the top e-commerce service in China in terms of market share. The latest move came less than five months after Tencent purchased a 15% stake in JD.com, China's second-largest e-commerce player. The two companies also offer a range of competing services from investments to taxi-hailing mobile apps. Alibaba declined to comment.
