Is there any sort of precedent for a console manufacturer making this sort of push?
I always assumed China was this Goliath that nobody can/will never break. I always thought that
1. Chinese gamers vastly prefer PC games because....
2. Piracy on PC is extremely rampant over there
So why would they switch to a console that does not allow them to pirate? I just wonder what its going to take for a console to win over there.
Console can't "Win". No one is saying that it can either. However China can represent a somewhat notable part of the console market if Sony play their cards right. China is a large country and that means there is plenty of opportunity, the majority of which is currently being exploited by PC and Mobile games.
However, despite consoles being banned for the past 14 years we've seen Chinese gamers import around 1 to 3 million consoles per year with the PlayStation 2 being the most popular console there. Just like any country there will be gamers who want to play console games and s importing these consoles was the only way to play games, console imports into China reached their peak once they started getting hacked. This time both Sony and Microsoft are hoping that console sales in the country can reach that peak again but without the consoles needing to be hacked. The game plan is to get gamers buying consoles through value added services and increased localisation efforts to get gamers to buy consoles.
It's worth noting that whilst piracy is big in China, the game market there is still worth more than the US gaming market (It's fucking huge) and so there is plenty of opportunity. Hence why Sony and MS are trying to crack the market to get some of that revenue.
It's a tough ask but there is demand in China for consoles. The console market already accounts for 5.1% of the total gaming market and its estimated that more than 1 million consoles will be sold in the country this year both officially and unofficially. Then the aim is to increase the software attach rate and get Chinese gamers buying games and subscribing to additional services.
Ultimately the Chinese console market will be small, but if they can crack that small market then they're looking at a market with more than 3 million players that is worth billions about 3 years from now.
Both Sony and Microsoft have made it clear, along with Shanghai Media Group that they want to ship 100 software titles per year, increase the attach rate to over 3:1 for software and increase the install base of consoles in the country.
This isn't something that can happen over night but I'm hopeful that we will see more Chinese gamers and in turn more active developments in China with new game titles launching internationally as well.