Sony JVs to bring mainland PS4

Sony Corp Monday said it will partner Shanghai Oriental Pearl Group to bring PlayStation, the world's most popular game console, to the Chinese mainland.

PlayStation — along with Microsoft's Xbox One, due to debut domestically in September — are expected to create a huge video game market on the mainland, where console sales have been banned for about 13 years.

Japan's Sony plans to form two joint ventures with Oriental Pearl, owner of the Oriental Pearl Tower, in the Shanghai free trade zone to start making and selling PlayStation consoles. Registered capital of the two ventures is 53.8 million yuan (US$8.6 million). Sony will have a 70 percent stake in one venture and 49 percent of the other, Shanghai-listed Oriental Pearl told the Shanghai Stock Exchange.

"We will penetrate the video game market in China and introduce China-developed game titles on PlayStation," Oriental Pearl said in the statement.

Sony's PlayStation 4 tops the global market with sales of 7 million units, followed by Microsoft's XBox One at 5 million units.

China's video game industry will generate about US$10 billion in sales next year, according to PricewaterhouseCoopers.

Shanghai's FTZ, inaugurated last September, offers companies more relaxed financial and investment controls that include the entry of game console businesses.

Besides Sony and Microsoft, Japan's Nintendo plans to expand in emerging markets, including China, with new devices starting next year, media reported, quoting company President Satoru Iwata.

Console makers may be anxious to crack such a large and lucrative market as China, but they will face problems of game copyrights in a country where pirated copies are rampant.

The Xbox One's offering of games, entertainment, education and fitness content will address demand for home entertainment beyond only games for Chinese consumers, said Zhang Dazhong, chairman of a joint venture between Microsoft and local partner BesTV.