Lenovo believes its Ebox video game system - manufactured by daughter company Eedoo - will provide a viable alternative to consoles manufactured by Microsoft (Xbox 360), Sony (PS3) and Nintendo (Wii).
According to Eedoo CEO Jack Luo, the Ebox is expected to feature an integrated controller-free platform similar to Kinect, along with 30 pre-installed games when it launches in Q1 2011.
Luo told Reuters that more than 19 million families in China will be able to afford the console if is priced under 3,000 yuan ($446).
"Chinese consumers are different. [Because], if you sell them just the machine they're going to wonder why it doesn't already come with games.
"[So], our strategy is to sell a complete product so that customers don't need to buy a large number of add-ons."
He added that Eedoo had just entered a second round of fundraising, with the goal of raising tens of millions of dollars from investors.
"Talks are underway with some venture capital firms and we're getting a very good response.
"As a Chinese company we know the market and our cultural habits better, so I'm very confident that we'll do well."