China Lifts Ban on Manufacture and Sale of Game Consoles

Published Date : Jul 27, 2015

About 15 years ago, China banned games console citing the reason that these consoles have potential to harm the physical and mental development of children. However, recently the country has decided to life the ban and remove all restrictions on the manufacturing and sale of game consoles. Following the development, Sony has already gone on records saying that this was a great news for the company. It was not surprising that leading game console manufacturers are rejoicing the development, since it will wide-open the multi-billion dollar Chinese market for them. Companies such as Sony, Microsoft, and Nintendo are already eyeing to capitalize on the market opportunities post the development. 

Back in 2000, Chinese government had forbidden both domestic and foreign manufacturers of video game consoles. However, it is important to note here that the ban was limited only till China, and the same was not applicable in Macau, Taiwan, and Hong Kong. The situation had earlier led to unbridled grey imports. While China already lifted the console ban on 2014, but it was limited only to a small “free trade zone” around Shanghai. Foreign companies such as Microsoft, Sony, and Nintendo partnered with domestic manufacturers to carry out their operations in this zone. Of these, Microsoft was first to announce that soon it will commence the production of Xbox Ones and in partnership with BesTV, a domestic company of China. Sony has associated with Shanghai Oriental Pearl Group to produce PS4. 

However, it was published in the Wall Street Journal recently that the Ministry of Culture in China is set to lift ban on production as well as sale of game consoles nationwide. With the latest regulation, foreign companies in China will be allowed to manufacture consoles from anywhere in the country and sell anywhere in the country they wish to.