According to the South China Morning Post, the Chinese government is preparing to lift the 13 year long ban on game consoles in the region. Such a move would be good for the industry, but first console makers such as Nintendo, Sony, and Microsoft would have to kowtow to the demands of the government. Apparently efforts to eliminate the ban are strongly supported by Chinese Premier Li Keqiang.
So what would console makers have to do in order to do business in China? The biggest thing they would have to do is open up manufacturing and distribution operations in Shanghai to serve China exclusively. This is one thing that the government would insist on, according to the report. No doubt they would also be at the mercy of government censors who would decide what can and can't be released in the region. Finally they would have to compete with a prominent black market that has been selling home consoles and pirated software for over a decade.
Of course China's game market is huge so getting past these challenges and adapting to an ecosystem controlled by the government could be very lucrative for any console maker willing to play ball...
Source: South China Morning Post