After the Chinese government lifted its ban on console games, companies like Microsoft Corp. and Sony Corp. now face the threat of censors deeming some of their popular titles unsuitable for the public.
Companies that make games and consoles fear that the Ministry of Culture, which must approve the content of every game before it enters the market, might block some of their most popular titles, known as AAA titles. If console gaming is going to succeed, these AAA titles need to be approved.
Cui Chenyu, a games analyst at IHS Technology in Shanghai, said that "if the games censorship is consistent, we will not expect a significant increase soon." She added that among the games that are unavailable in China include first-person shooters, like "Halo," "Destiny" and "Call of Duty," which censors might find too violent.
In other parts of the world, like North America and Europe, the International Age Rating Coalition (IARC) screens games and rates them according to which age they are suitable for. China is not part of the IARC, so foreign gaming companies cannot apply the same standards they have been using.
In China, games are treated like movies and television shows, requiring producers to tone down sex, drug use and violence.
It may follow that foreign gaming companies may soon adjust the content of their games to try and enter the Chinese market, similar to what they have done to enter the Chinese box office, with films like "Pixels" and "Robocop."
Game companies also have to adapt to the market, which until recently, has been turning to the gray market for console gaming. Analysts also say that most Chinese gamers are content with desktop, mobile and browser gaming, and may find console gaming too expensive.
Analysts then point to when consoles were allowed to be sold in the Shanghai Free Trade Zone last year, which also gave low sales for both Sony and Microsoft.