China to lift the ban on selling and making videogame consoles in the country

[Bouzoo]

 

The Wall Street Journal reports that this is happening, according to China's ministry of culture. Good thing all in all.

 

What does this mean? Few things.

According to a statement from the country's Ministry of Culture, companies like Sony, Nintendo, and Microsoft — among others — will now be allowed to manufacture and sell video game consoles anywhere in the country.

The ban was introduced in 2000 due to fear that the devices would have negative effects on development of children and it took them 15 years to do lift it. Does it have negative effects? Well let's leave that for another debate shall we?

 

Also let's not forget, last year the "free trade zone" was introduced, a 11 square mile zone in Shanghai that was sort of an experiment for console makers. Things were still complicating:

But even those relaxed restrictions proved to be a major hurdle to console-makers, which had to enter into contracts to build new manufacturing facilities in the area. In addition, they had to secure approval for console sales from regulators, and each and every console sold had to be individually inspected.

 

This should make things easier for everyone, manufacturers and customers, but let's be patient. We'll see how it turns out. I support this decision.

Sources : 1, 2, 3

[Real_PhillBert]

Prepare for a sharp drop in console prices.

[Si3Rra_7]

Prepare for a sharp drop in console prices.

Hopefully , so the next generation doesn't suck huge balls and ruin all PC games because of consoles needing massive optimization to run at decent res/fps/details

[Techhog]

Prepare for a sharp drop in console prices.

That's not how supply and demand works. 

[Real_PhillBert]

Hopefully , so the next generation doesn't suck huge balls and ruin all PC games because of consoles needing massive optimization to run at decent res/fps/details

 

Although I support competition, I dont know if more segregation in the console market will be good for PC gamers.

[Real_PhillBert]

That's not how supply and demand works. 

 

Increasing competition. That's how it works. 

[Guest]

Next thing you know they create the

 

PlayBox One U

 

It's as fast as a PS4 as large as the WiiU and has controllers like the Xobox

[Ahaber]

Prepare for a sharp drop in console prices.

Or a sharp increase in console profitability

[Guest]

That's not how supply and demand works. 

Yes, but that increases competition which will push companies to lower prices to compete with the market

Considering China joins every market it will most likely happen

 

Dem price drops

[Real_PhillBert]

Or a sharp increase in console profitability

 

That assumes that there wont be any Chinese manufacturers throwing their hat in the ring. 

[FakezZ]

Increasing competition. That's how it works. 

It is actually the other way around. More demand => Higher prices

[linuxfan66]

Still monstrous game censorship levels...

[Ahaber]

That assumes that there wont be any Chinese manufacturers throwing their hat in the ring. 

There will but the essential thing with consoles is having a large established ecosystem that has a large library of games and users, so I believe that the success of a Chinese manufacturer would likely be limited to China or another region at least for a few years.

[Real_PhillBert]

It is actually the other way around. More demand => Higher prices

 

That is assuming the Chinese cant build enough products. Usually this is not the case. 

[Real_PhillBert]

There will but the essential thing with consoles is having a large established ecosystem that has a large library of games and users, so I believe that the success of a Chinese manufacturer would likely be limited to China or another region at least for a few years.

 

I 100% agree, the Chinese consoles wont take off in the rest of the world for some time, but they will eventually make a foothold. 

[Ahaber]

That is assuming the Chinese cant build enough products. Usually this is not the case. 

Well when a new apple product comes out it always seems like China can't make enough, because there is usually a large wait time if you want to buy it in-store or online after launch.

[theereal]

Wow, the chinese have ALOT of games to catch up on

[Real_PhillBert]

Well when a new apple product comes out it always seems like China can't make enough, because there is usually a large wait time if you want to buy it in-store or online after launch.

 

That is just launch hype. Look at the long term. You can buy any apple product you want a month after release many many places. Notice that during the launch shortages the retailers do not raise the price.

[Guest]

It is actually the other way around. More demand => Higher prices

Chinese are really good at keeping up with demand

trust me, in my country 50% of our products including food come from China

And they never stop coming and they are often cheap alternatives for the poor

 

So imagine people who can't afford consoles just start having them

[Techhog]

Increasing competition. That's how it works. 

Yes, but that increases competition which will push companies to lower prices to compete with the market

Considering China joins every market it will most likely happen

 

Dem price drops

 

No. There is no chance whatsoever of there being another major console, especially on a global scale. The BOM of consoles MIGHT decrease if they move manufacturing to Foxconn, but there will not be another significant player in the market. You can quote me on that.

[Guest]

Well when a new apple product comes out it always seems like China can't make enough, because there is usually a large wait time if you want to buy it in-store or online after launch.

Larger wait-time = more hype

More-hype = higher chance of profit

[Misanthrope]

Increasing competition. That's how it works. 

 

Just because you could launch a console and be competitive doesn't means that you actually can launch a console and be competitive. You can expect millions of crap, low quality machines not unlike the ouya or the already prevalent android "consoles" and such but it will be a few years before they produce a proper console per se.

[Guest]

No. There is no chance whatsoever of there being another major console, especially on a global scale. The BOM of consoles MIGHT decrease if they move manufacturing to Foxconn, but there will not be another significant player in the market. You can quote me on that.

We just need to wait and see

The market is unpredictable

 

I don't really care as much as I'm not a console gamer 

[Real_PhillBert]

No. There is no chance whatsoever of there being another major console, especially on a global scale. The BOM of consoles MIGHT decrease if they move manufacturing to Foxconn, but there will not be another significant player in the market. You can quote me on that.

 

I understand where you are coming from, but whole-heartedly disagree. Whenever Chinese companies are allowed to enter a market, they do. Often in force. 

[Real_PhillBert]

Just because you could launch a console and be competitive doesn't means that you actually can launch a console and be competitive. You can expect millions of crap, low quality machines not unlike the ouya or the already prevalent android "consoles" and such but it will be a few years before they produce a proper console per se.

 

Depends on the marketing. Look at the Wii U for example. It is by pretty much all standards crap compared to the Xbone and PS4, yet still selling, because it is marketed differently.