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SIE Shanghai added a page for the PS5 on its official website over the weekend
The text notes that information on release date and price for Mainland China will be communicated in the future
PS5 consoles are manufactured in China, but not sold there yet, let's explore why
1/
The text notes that information on release date and price for Mainland China will be communicated in the future
PS5 consoles are manufactured in China, but not sold there yet, let's explore why
1/
2/ As always, it is no secret that China strictly regulates the video game market
In 2000 the government banned console sales in the country, citing unhealthy & violent content of video games that affect the youth (lol)
This caused console gaming to go underground (grey market)
In 2000 the government banned console sales in the country, citing unhealthy & violent content of video games that affect the youth (lol)
This caused console gaming to go underground (grey market)
3/ For some reason PC gaming was not subject to this ban and that grew into a multi-billion dollar industry and gaming started to become more normalised.
In 2013 the government started to explore overturning the ban and did so in 2014. SIE Shanghai was established in July 2014.
In 2013 the government started to explore overturning the ban and did so in 2014. SIE Shanghai was established in July 2014.
4/ The PS4 was officially launched in Mainland China in March 2015, approx a year and a half after the global launch.
Xbox One launched about a year after its global launch (Sep 2014).
However the console market is still fairly niche in China, despite strong legal growth.
Xbox One launched about a year after its global launch (Sep 2014).
However the console market is still fairly niche in China, despite strong legal growth.
5/ Outside of traditional barriers to console gaming, such as hardware and software pricing, popularity of mobile + PC games, lack of local development scene etc....
The biggest barrier to growth of China's legal console market is the regulatory environment for games in China.
The biggest barrier to growth of China's legal console market is the regulatory environment for games in China.
6/ In terms of hardware, Sony will be required to gain approval from regulators for the PS5 hardware. They will also need to pass 3C certification (Like FCC).
This process doesn't necessarily take a long time, but it can take a while.
The biggest issue however is software.
This process doesn't necessarily take a long time, but it can take a while.
The biggest issue however is software.
7/ Every single console game must be approved by the regulator prior to release in China.
Sure, the ESRB exists in the US, but the approval process is much more cumbersome in China.
Games must be censored in line with the law, they must be in Simplified Chinese etc...
Sure, the ESRB exists in the US, but the approval process is much more cumbersome in China.
Games must be censored in line with the law, they must be in Simplified Chinese etc...
8/ This localisation process takes some time and some games, let's use GTA V as an example, would never be approved unless they completely changed the game (due to its 18+ content across the board).
Therefore only a limited number of games can launch in the first place.
Therefore only a limited number of games can launch in the first place.
9/ On top of that the approval process can take 6+ months in some cases, sometimes even longer depending on how many revisions are requested.
In a year you can only expect around 30 console games to be approved across the board. Which shows the small scale i'm talking here.
In a year you can only expect around 30 console games to be approved across the board. Which shows the small scale i'm talking here.
10/ In other words, even if Sony gains hardware approvals soon, there is no point launching if it has no legal console games to launch with (even if region switching / importing disc games is a thing).
Therefore it may be some time before an official release.
Therefore it may be some time before an official release.
11/ However, that won't stop people from buying a PS5 from overseas (grey market) and using it in Mainland China
This is something people did during the console ban and post console ban
Downsides are no official warranty, local PSN store + having to connect to overseas servers
This is something people did during the console ban and post console ban
Downsides are no official warranty, local PSN store + having to connect to overseas servers
In summary:
It will be some time before the PS5 officially launches in China, due to regulatory barriers.
However, despite these barriers, there is a growing demand and an increase it players.
Our 54 page report explores the market in detail: https://nikopartners.com/chinas-console-tv-based-games-market/
It will be some time before the PS5 officially launches in China, due to regulatory barriers.
However, despite these barriers, there is a growing demand and an increase it players.
Our 54 page report explores the market in detail: https://nikopartners.com/chinas-console-tv-based-games-market/
