Redmond (WA) - Despite its strict laws about digital content, Microsoft is expected to bring its Xbox 360 console to China early this year, with a slew of legal questions sure to ensue.

According to media reports, Microsoft is planning on sending sales agents to China to begin negotiations with the country about bringing the console to the huge Asian country. The software giant has reportedly been in talks with the Chinese government about what would and would not be allowed if the console is allowed in the country.

China is very well known for its laws that scrutinize every facet of its culture, including most notably the Internet, which could be a problem for online games, a key part of the Xbox 360 package.

Another factor is the price. While China is an enormous market, a high-end product like the Xbox 360 might not be able to penetrate a large chunk of the population unless it is drastically cut in price. By officially licensing the console and games in China, Microsoft also opens itself up to piracy problems, which have plagued the home video market for years, thanks to China’s lack of copyright laws.

The Xbox 360 is currently out in front in the next-gen console wars, thanks in large part to its one-year head start over the Wii and PS3. Even though they eventually make their way to all corners of the world, console wars have historically been reliant on major European countries, North America, and Japan. China, however, is a huge market that has yet to really be fully explored by most console makers.