China Telecom will sell Microsoft's Xbox One gaming console in China from September through an exclusive contract.

This means that the Xbox One will be the first gaming console to be released in mainland China since the government banned console sales in 2000, citing games' effects on mental health.

China Telecom did not dprice of the Xbox One in the country.

In September last year, Microsoft reached a deal with Chinese internet TV set-top box maker BesTV New Media to form a joint venture to manufacture the consoles in Shanghai's Free Trade Zone.

To spur sales, Microsoft in June began selling the Xbox One without the Kinect motion sensor for $399, or $100 below the price of the full bundle.