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Game on China-After Temporary Ban Lift on Sale of Foreign Video Game Consoles

Microsoft Corporation (NASDAQ:MSFT), Nintendo Co., Ltd (TYO:7974), Sony Corporation (ADR) (NYSE:SNE) are now able to sell their video consoles in China after the Chinese government temperately lifted a 14 year old ban on selling foreign video game consoles. The temporary lift allows foreign video game consoles produced within Shanghai’s Free Trade Zone to be sold in the country after inspection by the cultural departments. Foreign video game console makers must produce the consoles in Shanghai’s Free Trade Zone.

The ban was originally put into effect because the government feared that video game consoles would have a negative impact on the mental health of Chinese youth. Since the ban, PC games have dominated the video gaming market in China. According to Reuters, the Chinese gaming industry generated $14 billion in revenues last year. This is a huge opportunity for foreign gaming console producers.