The Xbox One has been the subject of intense debate over its future.
Microsoft is aiming to sell between 4.5 million and 5 million Xbox Ones in the country, while Apple has said it wants to sell around 7 million of the new console.
However, both are currently at odds with the government, with the Egyptian government accusing Apple of violating laws by selling the new Xbox One in the first place.
The government has launched a series of legal challenges against the Xbox One, arguing that it is not in conformity with Egyptian laws.
The latest legal battle centres on the sale of a model from a company called Xplorer, which is currently listed as having been authorised by the Egyptian state to sell the Xbox.
The company was granted a license to sell consoles in Egypt last month, which the state claims breaches the law.
Apple has been a leading advocate of the Xbox’s presence in Egypt, arguing the console is a key part of the Apple ecosystem in the Middle East.
However it is currently selling between 7,000 and 8,000 consoles in the Egyptian market, making it the second largest console maker in the region.
Apple’s Xbox One consoles have been on sale in Egypt since December 2015, with a price tag of $399, $399 for the 12GB model, and $499 for the 16GB model.
It is expected to be available in stores by the end of 2019.
However the Egyptian Supreme Court has said the license granted to Xplore is valid for two years, and will be renewed on March 30, 2020.
“We are not interested in selling the Xbox one in Egypt.
This is an illegal act and we are challenging it,” Apple said in a statement on Wednesday.
“We will continue to fight this matter and will take all legal actions necessary to defend ourselves in court.”
Apple is not the only one to be involved in the ongoing dispute.
Microsoft has been fighting for its Xbox One presence in the Gulf region for years.
The Xbox brand was established in 2006, with an Xbox logo being stamped on the back of the console.
Microsoft owns a majority stake in the Xbox division.
It now owns over half of the global Xbox market.
However its Xbox division is facing its own legal troubles.
The court has been considering a lawsuit that accuses Microsoft of selling unlicensed Xbox consoles in Libya, which are used in the conflict in the Arab country.
Microsoft argued that the Libyan license was granted in line with a law which allows the export of goods to countries that are not recognised by the European Union.