Late last year the Chinese government said that it would lift the ban on home consoles in the country and created Shanghai Free Trade Zone so that foreign firms could set up operations to manufacture systems within the country. This was one of the conditions that the Chinese government put on companies that wanted to sell home consoles within the region. Foreign companies that make consoles in Shanghai's free trade zone and sell them in China will first have to get inspected by various cultural departments.
China banned the sale of home video game consoles in 2000, saying that it did so because it had an adverse affect on the mental health of the country's youth. The ban has helped create a gray market for home consoles and software as well as a black market for software. The ban also helped the PC gaming space grow by leaps and bounds over the years in the region. The PC gaming market in China generates $13 billion dollars a year.
While the ban was lifted on making and selling consoles, today we are learning that revisions to the regulations on how the free trade zone will be governed have been completed and it is officially okay to sell them in China, according to the People's Daily.
Both Sony and Nintendo decided to take a "wait and see" approach to the region, but Microsoft jumped in with both feet earlier this year. In fact, a QQ Games report on Microsoft partner BesTV's earnings call last week revealed that the firm expects to sell 100,000 Xbox One units in China. During its earnings call BesTV, a Chinese media giant that Microsoft partnered with to jump into the country's emerging console market, said that it would sell 100,000 units in China, where it is scheduled to launch in July.
The company also said that Microsoft would be in charge of appointing the new company's CEO, and that it would produce a variety of content exclusive and specific to the Chinese market.