Microsoft Plugs Into China.

In an effort to tap millions of potential customers, Microsoft plans to sell Internet set-top boxes in China by the end of this year, a company executive confirmed early today. The devices, which will plug into TV monitors and are known by the code name Venus, will allow Microsoft to target the many millions of Chinese who are currently unable to afford computers, but are keen to hook up to the Internet. There are more than 300 million TV sets in China, according to recent estimates, but comparatively few PCs. Sean Zhang, managing director of Beijing-based Microsoft China Research and Development, said that the company is hoping the devices will be priced below $302. The Venus project was officially announced in March of this year when Microsoft Chairman and CEO Bill Gates made his first visit to Shenzhen, one of the special economic zones established by the Chinese government to encourage foreign investment. All the applications are in simplified Chinese, the form of the written language used in Mainland China. Venus also draws from Microsoft_s Web browser Internet Explorer and its WebTV service. "Most importantly, the device provides a browser designed for TV," Zhang said. Initial partners who have signed up to produce Venus computers include the Acer Advanced Labs unit of Taiwanese vendor Acer Group, Chinese PC and handheld maker Legend Holdings, Mainland electronics giant Hai_er Group and Philips Consumer Electronics. Although Zhang stressed that Venus is aimed squarely at the Chinese market, he didn_t rule out the possibility of Microsoft perhaps looking to offer the technology elsewhere in the world.