From Reuters comes the news that Lenovo, the fourth-largest PC manufacturer in the world, has formed a new internal group tasked with creating a gaming console specifically for the emerging Chinese market.

Forty software engineers have been seconded to Beijing eedoo Technology, and are currently working on bringing the "eBox" game console to market.

Technology blog Engadget have previously reported rumours that the device will ship with a Kinect-inspired motion-sensing system, although final specifications are unknown. The device is slated to launch at some stage in 2011.

Microsoft, Sony and Nintendo have failed to make inroads into the hugely lucrative Chinese gaming market. Due to concerns over piracy and the effect of video games on youth, consoles have been banned from sale in mainland China since 2000.