China is finally set to end a long-standing ban on game consoles, now allowing sales across the entire country.
The ban began 15 years ago; however, the Chinese government started allowing the sale of the PlayStation 4 and Xbox One last year. Sales were limited to the economic development zone of Shanghai.
Game consoles were first banned in China in the year 2000, with the government fearing that video games had a negative impact on both the physical and mental development of children. Those bans, however, were eased last year. Microsoft began selling the Xbox One last fall while Sony waited until earlier this year to launch the PlayStation 4.
While game consoles will be allowed in China, it is unlikely that we will see the heavy censorship that the Chinese government inflicts on the gaming industry go away any time soon. Many games that are enjoyed in countries like the U.S. will not make it over to China
While people will be able to purchase game consoles in China now, the real question is whether or not game consoles will take off. Because of the ban, PC gaming in China has become extremely popular while smartphone gaming has also become quite popular. Console gaming will have an especially rough time in China considering the fact that China's GDP per capita is only a little over $8,100.
The gaming industry has had its eyes on the Chinese market ever since the 2000 ban, and for good reason. In fact, the tech industry in general has been looking to China as a way to expand business, with Apple having lately started sales of the iPhone in China over the past few years. It is estimated that the video game and console market in China will be worth $22.2 billion this year, representing a rise of 23 percent from last year, according to Newzoo BV a gaming research firm.
While Sony and Microsoft did begin selling their respective consoles in past months, sales were not anything like the two companies were hoping. Only around 550,000 in total consoles from both companies are expected to sell this year. This is likely because of the cost of these consoles, as realized by Microsoft, which lowered the price of the Xbox One in China and Japan in May.
Only time will tell how popular gaming consoles end up being in China; however, the lifting of the ban certainly is a step forward.
