Kirsten Acuna / Business Insider
Re/code reported the news first.
Microsoft will officially make the announcement on its Xbox blog Tuesday evening.
This is a big deal because it will make the Xbox One the first foreign gaming console to be released in China since 2000. For the past 14 years, the country has had a ban on selling gaming consoles in the country. It was put in place to protect youth from the potentially harmful effects of video games, according to Kotaku.
China's State Council temporarily lifted the ban in January allowing foreign game consoles such as the Xbox One, Sony's PlayStation 4, and Nintendo's Wii U to be sold in the country. The only catch is that foreign companies must work with a local partner and operate from Shanghai's Free Trade Zone.
According to the release, Microsoft will bring the Xbox One consoles to China through a partnership with BesTV. The two formed a joint venture, E-Home Entertainment Development Company Ltd., back in September 2013.
Through the partnership, E-Home Entertainment will invest "in an innovation program that will enable creators and developers to build, publish and sell their games on Xbox One in China and in other markets" where the console is available.
The launch of the Xbox One in China later this year should help give a boost to Microsoft's console sales which are currently lagging behind Sony's rival PlayStation 4.
Earlier this month, Sony Corp. announced sales of the PS4 console surpassed 7 million.
Microsoft recently announced it has sold more than 5 million Xbox One units in 13 countries.
Come September, the console will be available in 42 total markets worldwide.
Microsoft CVP of devices and studios Yusuf Mehdi claims there are more than a billion gamers in China in a video that will be posted to Xbox Live's blog later this evening.
A Microsoft spokesperson refused to comment on the number of Xbox One units planned to be released in the country.
Watch the announcement below: