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This Move in China Could Be a Big Boon For Game Console Makers

2 minute read

In a big boon for Microsoft, Sony, and Nintendo, China has finally allowed the production and sale of video game consoles on their shores.

In a statement released by the Ministry of Culture, the move will mean that after 15 years, foreign and domestic companies will be allowed to manufacture and sell consoles anywhere in the country, according to a report by The Wall Street Journal.

Consoles were initially banned in 2000 to protect children and youth from the perceived negative effects of playing video games. This, however, hasn’t stopped traders from illegally importing consoles and selling them to customers at “gray markets”.

In January last year, China relaxed their ban by allowing “foreign-invested enterprises” to manufacture consoles inside Shanghai’s Free Economic Zone. The government, however, emphasized that new rules would be drafted to govern the entry of consoles into the country. “Things that are hostile to China, or not in conformity with the outlook of China’s government, won’t be allowed,” said Cai Wu, the head of the Ministry of Culture, in a report by Bloomberg.

Meet America's First Video Game Varsity Athletes

Chicago, Video Gaming, Robert Morris University
Jonathan "McSleuthBurgur" Lindahl, 19, a freshman in computer networking, practices League of Legends and other video games in the video game practice space of Robert Morris University's athletic department in Chicago, March 18, 2015. The university recognizes video games as a varsity sport under its athletic department and has been offering sports scholarships to video gamers to play League of Legends. The team practices four to five nights a week in a $100,000 classroom outfitted for video gaming. Kitra Cahana—Getty Images Reportage for TIME
Chicago, Video Gaming, Robert Morris University
Chris "STARS FourEyes" Broadnax, 21, a graphic design major, plays video games in Robert Morris University's video game practice space in Chicago, March 18, 2015. Kitra Cahana—Getty Images Reportage for TIME
Chicago, VideoChicago, Video Gaming, Robert Morris University Gaming, Robert Morris University
Rachel "Razur" Zurawski, 20, plays League of Legends and other video games in Robert Morris University's video game practice space in Chicago, March 18, 2015. Kitra Cahana—Getty Images Reportage for TIME
Chicago, Video Gaming, Robert Morris University
Student video game athletes play League of Legends and other games in Robert Morris University's video game practice space in Chicago, March 18, 2015. Kitra Cahana—Getty Images Reportage for TIME
Chicago, Video Gaming, Robert Morris University
Derek "Zig" Shao (left), 20, and Blake "Oberan" Soberanis, 22, play League of Legends in Robert Morris University's video game practice space in Chicago, March 18, 2015. Shao and Soberanis are two of the best members on the school's video game team. Kitra Cahana—Getty Images Reportage for TIME
Chicago, Video Gaming, Robert Morris University
Chris "STARS FourEyes" Broadnax (right), 21 and Mario "ThirstDrinker" Huang, 26, practice League of Legends and other video games in Robert Morris University's video game practice space in Chicago, March 18, 2015. Kitra Cahana—Getty Images Reportage for TIME
Chicago, Video Gaming, Robert Morris University
Rachel "Razur" Zurawski, 20, practices League of Legends and other video games in Robert Morris University's video game practice space in Chicago, March 18, 2015.Kitra Cahana—Getty Images Reportage for TIME
Chicago, Video Gaming, Robert Morris University
Robert Morris University associate athletic director, Kurt Melcher (second left), Jonathan "McSleuthBurgur" Lindahl (right), 19, and Dean "keyboychespin" Mitchell (second right), 18, watch others play the game Heroes of the Storm in Robert Morris University's video game practice space in Chicago, March 18, 2015. Kitra Cahana—Getty Images Reportage for TIME
Chicago, Video Gaming, Robert Morris University
Derek "Zig" Shao (left), 20, and Zixing Jie (right), 20 play League of Legends in Robert Morris University's video game practice space in Chicago, March 18, 2015. Kitra Cahana—Getty Images Reportage for TIME
Chicago, Video Gaming, Robert Morris University
Mario "ThirstDrinker" Huang, 26, a sophomore studying Drafting Technology, practices League of Legends and other video games in Robert Morris University's video game practice space in Chicago, March 18, 2015. Kitra Cahana—Getty Images Reportage for TIME

This has opened the gateway for companies to start selling their hardware in a potentially huge market. China is the world’s third-largest market for video games, and could overtake the US as the biggest market with potential revenues of more than $22 billion by 2016, according to a report by Newzoo. As a result of China’s console ban, most of the games sold have been online, with sales of online games in China said to reach around $18 billion in 2014.

Companies have already taken steps to make their consoles available in China. Microsoft started selling their Xbox One in September of last year, and sold more than 100,000 units on the first day alone, marking a better debut in China than in Japan, according to a report by Polygon.

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