China to Allow Sales of Videogame Consoles
China said it would end a more than decadelong ban on the sale of videogame consoles as part of a new set of rules issued Friday for a new free-trade zone in Shanghai.
According to a statement from the State Council, China's highest decision-making body, foreign companies that operate sales and production within the new trade zone will be able to sell the products across China pending approval of each device by the Ministry of Culture.
Game consoles are officially banned in China, but have long been available on the market through unofficial channels, such as private retail outlets in China's ubiquitous computer malls. Despite the availability, consoles remain unpopular in China, in part due to a preference among consumers for playing games on personal computers and smartphones.
Earlier this week Microsoft announced its plans to invest $237 million into a joint venture with Chinese Internet TV company BesTV New Media in the Shanghai free-trade zone to develop "family games and related services."
Though consoles haven't caught on in China, recent efforts by companies like Microsoft to make consoles that provide Internet access and television along with high-end games could attract more Chinese consumers. A number of companies in China, including mobile-phone startup Xiaomi Inc., have recently released set-top boxes to cater to anticipated demand.
Seven government ministries originally agreed to ban consoles in 2000 out of concern for the impact the games have on young people, though the block instead helped popularize gaming on computers in Internet cafes across the country.
The government will implement the new rules and regulations for the Shanghai trade zone over the next three years. No timeline was given for when sales of videogame consoles would be allowed.
The Wall Street Journal