According to China Daily report on Friday, Lenovo has set up a unit to develop a video game console for the China market, pitting it against rivals such as Microsoft and Sony.
The China Daily reported that about 40 Lenovo software engineers have been spun off from the company to work for Beijing eedoo Technology, which will be tasked with developing and marketing the “eBox” game console.
Lenovo, its unlisted parent Legend Holdings, and its private equity arm Legend Capital co-invested in the new company, but did not disclose investment figures.
Lenovo has been trying to diversify away from selling only the heavily commoditized personal computer, having launched in the past year a smartphone in its home market and announcing plans to roll out a tablet PC.
Lenovo and eedoo officials were not immediately available for comment.