Tech giant Microsoft (MSFT) may be looking into a big move for its Xbox Game Pass, opening up the system to players in China. This is based on some clues derived from the Xbox PC app, which hinted in that direction. But there are some concerns around this move, particularly that it may not have all that much impact after all. Investors seemed skeptical as well, and Microsoft shares slipped fractionally in Wednesday afternoon’s trading.
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References to something called “Project Saluki” recently appeared in an update to the Xbox PC app. Microsoft described Project Saluki as “…China market expansion with Game Pass, Rewards and subscription tiers.” Microsoft has had at least a partial position in China since 2014, when it became the first video game console in the country after a 14-year ban on game consoles altogether.
The part that may have investors skeptical, though, is that the Chinese government has a host of laws in place around video games in general. First, any titles that show up have to be approved by Chinese regulators. As of 2025, reports note that getting such approval requires a host of boxes to check, including Simplified Chinese, no references to “killing”, and if there actually is some in the game, bodies and/or blood must quickly vanish. A further rule is aimed at the under-18 market, which is a substantial market for video games. The Chinese government allows children under 18 the ability to play video games for 90 minutes a day on weekdays, and only three hours on weekends.
Trouble in the Data Center
Meanwhile, Microsoft is also having issues establishing a data center in Kenya, as new disagreements have arisen between Microsoft and the Kenyan government. Microsoft reportedly requested guaranteed payments, requiring the Kenyan government to commit to paying a certain amount annually. The government demurred, and that left Microsoft potentially planning to throttle back the project altogether.
The Kenyan government, represented by principal secretary for the Ministry of Information John Tanui, is concerned about the data center’s overall scale, as well as power requirements. Both of these points have been issues elsewhere, so it is not surprising to see them come into play here. Kenyan President William Ruto amplified this, saying, “We would need to switch off half the country for the data center to be powered.”
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 9.97% loss in its share price over the past year, the average MSFT price target of $559.98 per share implies 38.6% upside potential.
