Despite being manufactured in China, the current generation of home consoles are illegal in the giant country - and have been since 2000. However, Microsoft is currently lobbying to sell the 360 in China.
Microsoft China exec, Zhang Yaqin, told Shanghai Daily that the company is continuing efforts to acquire approval but ultimately "it all depends on the government".
The decision to allow the legal sale of Microsoft's games console will involve acquiring approval from "several government bureaus".
Although it is still unclear why consoles are banned, a Niko Partners researcher recently said that the government felt that this action would prevent the youth from wasting their mind.
"The government thought that was the best way to protect Chinese youth from wasting their minds on video games, after a parental outcry".
Not only is the Xbox 360 banned in China, but Chinese law has also blocked the sale of Microsoft's Kinect.