Domestic players are bandits? Who will play the game in the console game market?

Since 2013, after 15 years of enforcing the "Opinions on the Special Administration of Electronic Game Venues," which effectively banned the sale of game consoles, China began to gradually ease restrictions. This shift opened new doors for domestic manufacturers, who quickly took action, realizing that waiting for the right moment was no longer an option. They understood that once the three major players—Nintendo, Sony, and Microsoft—re-entered the market, there would be little room left for others. Domestic companies were seen as upstarts, but who would actually play games on consoles? From 2015 to 2016, Lenovo entered the scene with its own “game console,” using a bold approach. It combined TV set-top box features with a flawed Android-based system, hoping to carve out a niche between traditional console gamers, PC users, and mobile gamers. However, the result was a disaster. The gaming experience was severely compromised, leading core gamers to ignore the product entirely, while casual users found it confusing and unappealing. Sony and Microsoft made their moves, but the results were underwhelming. When the Shanghai Free Trade Zone allowed foreign companies to produce and sell game consoles, international players started setting up shop in China. In September 2013, Microsoft partnered with Best Practice, and in 2014, Sony PlayStation teamed up with Oriental Pearl Culture. By late 2014 and early 2015, Xbox One and PlayStation 4 consoles hit Chinese shelves. Despite this, sales did not meet expectations. Microsoft and Sony didn’t release specific numbers, but reports suggest that combined sales of Xbox One and PlayStation 4 in China reached around 550,000 units. In contrast, PlayStation 4 sold over 34 million globally, while Xbox One reached 20 million. This shows that China still hasn't contributed significantly to these companies' global success. China has a massive population, giving it an edge in most markets. Yet, the game console sector is an exception. Whether foreign or domestic, few have made a lasting impact. Fifteen years after the ban, many have missed their chance. What are the underlying issues? And where is the future of China’s game console market heading?

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