The Ministry of Culture is discussing ending the ban with other Chinese agencies and the manufacturers themselves. Originally the law was put in place to "protect" the youth of China from the allegedly mind-warping effects of video games, though presumably they've realized that statement has no merit, or they simply think it's better for China if they open their doors to consoles once more. Keep in mind that despite the ban, PC gaming is huge in China, which doesn't seem to jive with their idea that all video games are dangerous.
Consoles have been available on the Chinese black market for years, tax and tariff-free, which may be another reason they want to lift the ban. Already Nintendo and Sony stock has risen in Japan with mere talk about the ban being eliminated, and it would surely be a huge boon to both if the law was in fact reversed. But all seven Ministries who put the ban into effect would have to agree to its reversal, according to an unnamed Ministry of Culture source, and that could make for a long road ahead.
If it does happen, the lifting of the ban could amount to something of a gold rush, as companies scramble for market share in the world's most populous country which has been starved of legal consoles for years now. That said, many poor Chinese would likely be unable to afford a new console, and the black market could still thrive with access to cheaper systems.
If China lifted the ban, this could entirely change the dynamics of the next console generation. Sony and Nintendo would likely see a big boost from new sales to China, while Microsoft's Xbox likely wouldn't to the same degree. Playstation and Nintendo consoles have always been significantly more popular than Xbox in Asia, and would likely see the lion's share of the benefit from such a move by the Chinese government. For example, this year in Japan Nintendo has sold 12M Wiis, Sony has sold 7M PS3s while Microsoft has sold just 1.5M Xbox 360s. The percentages probably wouldn't be much better in China, which is another reason Nintendo and Sony are celebrating.
“Sony has always regarded China as a promising market for the game operation and has been studying and preparing for possible business opportunities,” Satoshi Fukuoka, a spokesman for Sony’s game unit, told Bloomberg today. He said Sony has had “constructive discussions” with regulators in China, but couldn't elaborate.
Nothing is official yet, but as mentioned, Nintendo and Sony stocks are already up in Japan just based on mere speculation the ban could be lifted. An actual implementation of these talks could have a much more pronounced effect on their companies, and the industry as a whole.
