Sony has plans to sell PlayStation 4 in China
Sony plans to start packaging new video game consoles for China starting in December as it seeks to win sales in the world’s most populous nation after the end of a 14-year ban on the machines.
Sony’s venture for China intends to package 200,000 consoles annually, according to a filing on the website of the China (Shanghai) Pilot Free Trade Zone. Masaki Tsukakoshi, a Tokyo-based spokesman for Sony Computer Entertainment, confirmed the document’s authenticity and said actual production amounts may differ.
Gaming is one of the few bright spots for Sony, which is headed for its sixth annual loss in seven years despite selling more than 10 million units of its PlayStation 4 console. Microsoft has already started selling its Xbox One in China, with a limited range of titles because of government restrictions.
“There’s an opportunity” in China, said Atul Goyal, a Singapore-based analyst at Jefferies Group. “But it remains to be seen if the upside is large or small.”
Sony said it agreed to form two ventures with Shanghai Oriental Pearl Group to start making and selling consoles after China lifted its ban, according to a filing by the China partner in May. Sony will have a 70 percent stake in one venture for hardware production and 49 percent in the other, for software sales and networks.
“We have not disclosed the launch date in China yet,” Sony’s Tsukakoshi said.
Sony fell 1.7 percent to 1,882.5 yen ($17.48) at the close of trade in Tokyo trading, paring a 3.1 percent gain this year.
The filing was made in July and posted on the free trade zone website in August. It was approved by China’s State Environmental Protection Administration, according to the website, which didn’t disclose an approval date.
Microsoft began selling its Xbox One last month in 4,000 stores, becoming the first big player offering a console in China.
“Console gaming is very, very expensive, both on the hardware and software side,” said Serkan Toto, the Tokyo-based founder of consultant Kantan Games. “Most Chinese console gamers that can afford it already have a console.”
Last month, Sony said it would report a wider full-year loss of 230 billion yen as it writes down the value of its faltering smartphone business.
Sony plans to boost cloud-based gaming by creating a mass-market streaming service similar to Netflix Inc. The PlayStation Network has more than 50 million active users and its PlayStation Now service is available in North America for streaming content on Sony devices including Bravia TVs. Bloomberg
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