Game consoles are facing several hurdles in faring well in the Chinese market, Shanghai's China Business News reported, citing that the lifting of the 15-year ban may be a little too late for the sector.
Under the newly issued rules for game consoles by the country's Ministry of Culture, local and foreign firms are allowed to manufacture and sell such gadgets. It also provides regulatory power to provincial cultural authorities.
Moreover, game console makers and sellers are also now required to submit an annual report regarding their content and sales.
The news report also stated that the production and sales of gaming gadgets used for gambling are still prohibited.
The new rules issued by the culture ministry means that the ban first implemented in June 2000 has already been lifted across the nation.
Earlier this year, China allowed game console production and sales in Shanghai's Pilot Free Trade Zone.
Since the lifting of the ban in January, both Microsoft and Sony have launched their brands Xbox One and PlayStation 4.
However, for Analysys International analyst Xue Yongfeng, amid the ban relaxation, there is a lack of enthusiasm for the game console market in the country. Among the hurdles it faces are game censorship, competition from mobile and computer games, and familiarizing the users with the gaming gadget.
According to the news report, since computer games have already occupied a large share in the gaming market, a little space was left for game consoles.
Gamers, who bought consoles overseas during the ban, said that what only makes the gadgets appealing is their two-year warranty.
Chinese gamers also said that they often see a late launch for new games, as these are being subjected to regulatory review before they are unveiled in the country.
Industry insiders furthermore revealed that even tech giants Microsoft and Sony have posted poor sales performance because of lack of demand and game titles.