Local media reports that Microsoft will soon set up a games development office in Chengdu

This will be Microsoft's first game development institution in China, and Chen Yongzheng, senior vice president and CEO of Microsoft China, said that the output value of global games industry will reach US$46 billion by 2010 and China would contribute a great deal to this figure.

Chen said that Microsoft will build this institution as an open talent training base to help China educate its own game developers and promote the development within the industry.

Microsoft's new platform is targeted at developing games with Chinese characteristics for Microsoft's Xbox.