It’s finally official: China has lifted the ban on selling game consoles in the Shanghai free trade zone, while the console makers mull plans to enter the market, and the Chinese gov’t drafts rules.
To be clear, this is a somewhat temporary situation. As of right now, there are no rules inhibiting sales of consoles in the province, but the State Council intends to create and enforce rules. While we have no clear idea what said rules could be, it’s likely China will have an eagle eye focus on content with a stringent classification system as Australia has, aside from the usual rules and regulations for trade. You can rest assured the recent episode involving Battlefield 4 is fresh in the State Council’s minds.
Perhaps it is because the rules have not yet been fully fleshed out yet that Sony and Nintendo have announced that they are still studying the situation and how to best take advantage. On their end, Microsoft has recently announced a new venture with Chinese subsidiary Shanghai Media Group, via BesTV New Media Co., worth $ 79 million.
Don’t let it be said we have short term memory, however. Of course, Nintendo has already been selling their consoles in China to a limited degree via subsidiary iQue. Under the terms of this agreement, the consoles are rebranded with the iQue name, the consoles are region locked, and the games and consoles sold are very limited, usually 1st party. Now, this agreement with iQue (a Taiwanese company) has nothing to do with having consoles made in Shanghai, a prerequisite to selling consoles there. And so, Nintendo is at the biggest crossroads of all the console companies.
Microsoft may have a better deal in place with BesTV, or it may be more focused on entertainment than gaming (You know they would). Depending on the final rules set in place, Sony may need to find themselves a partner, or they might be able to go it alone, which is likely why Nintendo is waiting in the wings as well. And of course, let’s not forget, Valve is just around the corner, ready to license SteamOS to Chinese PC manufacturers at a drop of a hat.
Overall, this is a potential windfall for the gaming industry as a whole, and would color the console wars in an entirely different light. With a new blue ocean to explore, the companies may feel less pressure to be so cutthroat. On the other hand, even the US market itself might become secondary to China in a matter of years. What do you think this means for the future of games?
Image is of the iQue 3DS XL, from the official iQue website.