Mainland sales of game consoles to create trillion-yuan market

Microsoft launched Xbox One in China on Sept. 30, 2014. (Photo: CNS)

(ECNS) – The lift of a ban on the sale of gaming consoles in the Chinese mainland will unleash market potential worth one trillion yuan ($160 billion) in a decade, according to a home entertainment expert.

On Sept 30, Microsoft launched its Xbox One at more than 4,000 outlets in 37 cities, becoming the first gaming console legally sold on the mainland market since China's ban 14 years ago.

Last year, the Shanghai free trade zone removed the production and sale of game consoles from its negative list, paving way for Microsoft's launch of the Xbox One with its Shanghai-based partner BesTV New Media.

More companies are waiting to enter the playground. Sony set up a joint venture with the Shanghai-based Oriental Pearl Culture Development Company in May to sell its PlayStation 4 consoles in the mainland as early as December.

Zhang Dazhong, president of the E-Home Entertainment Development Company, the joint venture set up in 2013 by Microsoft and BesTV, said many domestic companies such as Huawei and Zhongxing are also showing interest in the market.

"I anticipate the market will reach a hundred billion yuan in five years, and one trillion yuan in ten years," Zhang said, referring to sales of gaming consoles and related products such as game engines, wearable devices and 3D technology.

"This wouldn't happen without the favorable policies of the FTZ," said Ernst & Young tax and business consulting partner Liu Shuyao.

The Shanghai government has given the green light to the combined sale of consoles and games. In the past, sales of consoles and distribution of gaming content were administered by two different government departments.

The FTZ also allows foreign companies to obtain licenses after they set up their companies, which saves up to nine months. According to Zhu Min, deputy director of the FTZ's Administrative Committee, about 190 foreign firms get registered each month, accounting for 23 percent of the total.