A customer looks at video game consoles, which were brought into China via unauthorized channels., in an electronics market in Shanghai on January 8. Photo: CFP

 Shanghai on Monday released detailed rules on the application process for foreign-invested video game console makers to manufacture and sell their products in the city's free trade zone.

According to the rules, the Shanghai Municipal Administration of Culture, Radio, Film & TV will be responsible for approving foreign companies' applications for making and selling game devices. The administration will make a decision, based on the content of the games, within 20 days after it receives an application, the rule said.

China said in January that the 14-year-ban on selling video game consoles will not be applied to the China (Shanghai) Pilot Free Trade Zone. The move will pave the way for Sony Corp, Microsoft Corp and Nitendo Co to enter the world's third largest video game market in terms of revenue, Reuters reported.

According to the rules, video games containing gambling features will not be approved. Also, the games should have legal intellectual protection, and could "spread the knowledge of science, arts, humanity, and benefit the healthy growth of young people," the rules said.

China saw video game revenues grow by more than a third in 2012 to nearly $14 billion last year, but the console makers will still face the challenge for grabbing market share in a country where a whole generation has grown up without a PlayStation, Xbox or Wii, Reuters reported.

China's gaming industry was valued at 123 billion yuan ($19.75 billion) in 2013, the Securities Times reported on Monday.

However, due to the ban of video game consoles, China's gaming industry is dominated by PC and mobile games, experts said.

Shanghai-listed BesTV New Media Co Ltd and Microsoft spent $79 million to form a joint venture last September. The company, E-Home Entertainment Development Co Ltd, will start selling Microsoft's popular Xbox consoles as early as late April, news portal qq.com reported on April 15.

Shenzhen-listed GoerTek Inc, which makes and sells electro-acoustic components and electric accessories, will produce Sony's PlayStation 4 in China, the Securities Times reported.

Shares in BesTV tumbled 2.75 percent to 35.78 yuan and GoerTek grew by 1.47 percent to 29.67 yuan on Monday.

Global Times