China lifts ban on foreign video consoles allowing Sony, Nintendo and Microsoft to trade

The Chinese government banned the selling of foreign video consoles due to their ‘adverse effects on the mental health of young people’.

17:01 08 January 2014

The Chinese government banned the sale of foreign video consoles in 2000 saying that they had ‘adverse effects on the mental health of young people’ but now it has been reported that China has temporarily lifted the ban giving Sony, Nintendo, and Microsoft the chance to enter the lucrative market.

However, China’s State Council did not say how long they will allow foreign firms to sell consoles in the country.

In a statement, the Chinese government said that foreign firms are allowed to make consoles within Shanghai’s free zone and sell them in China after inspection by cultural departments.

Reacting to the news, Sony said: "We recognise that China is a promising market. We will continuously study the possibility, but there is no concrete plan at this stage."

Chris Green, an analyst with Davies Murphy Group, said that this is huge news for the industry. He added:

"This is an enormous market worth potentially tens of billions of dollars.”

"Now this is going to be a race to see who can be first to market, who can get a factory in the Free Trade Zone up and running and get consoles off the production line the fastest.”