Following Microsoft's XBox launch on the Chinese mainland in September, the news of Sony's PlayStation plans surfaced in the Chinese media on Friday, with January 2015 announced as the month of release for the Japanese maker's console product.
The mainland activities of the two tech giants occurs after the Chinese government broke a 14-year ban in January—it first disallowed the sale of video game consoles in 2000, citing the protection of the mental health of young people as the reason.
Sony's deal with the Chinese government was actually finalized in May, when the response of the Japanese corporation's chief executive was registered in the media. Sony is keen to reap the benefits of a new market with a PlayStation model that has proven to be the most popular since the console was first introduced in 1994. It sold 7 million units globally in March alone.
Chief executive Kazuo Hirai, who is conscious of the profit dips that have plagued Sony over a lengthy period, said in May: "The Chinese market, just given the size of it, is obviously potentially a very large market for video game products . . . . I think that we will be able to replicate the kind of success we have had with PS4 in other parts of the world in [China]."
The potential of the Chinese mainland video game market—which according to Pricewaterhouse Coopers (PwC) will be worth $10 billion in 2015—has also registered with others in the industry, as around 70 game developers, including Ubisoft and Koei, will service Chinese PlayStation users. Reuters reported on Thursday that China is the world's third-largest video game market.
Fortunately for Sony, it will be able to follow through with its commitment to manufacture as many PS4s as it needs to satisfy the Chinese video game market and its 500 million consumers.
As imported consoles are still not permitted by Chinese law, Sony has partnered with Chinese media corporation Oriental Pearl Group, which has established two joint ventures in the Shanghai Free Trade Zone (FTZ): one for hardware, and the other for software and services.