Nintendo may have just hit the jackpot in a good way; they can now sell their Switch Console in China.
Nintendo shares were up by more than 15 percent Friday afternoon in Tokyo after its Chinese partner Tencent Holdings received approval to sell its Switch console in the southern province of Guangdong.
Authorities in Guangdong, where Tencent is registered, posted the news on their website Thursday according to Reuters, saying they had permission to start distributing the Switch with a test version of New Super Mario Bros. U Deluxe
China brought its 15-year ban on video game consoles to an end in 2015, but Sony’s PlayStation and Microsoft’s Xbox have struggled to gain significant traction in the huge local market. This was followed by a ban on new video games last year, which was partially lifted in December, with Tencent winning approval for some games at the start of 2019.
Some analysts see more potential for Nintendo’s games roster than rivals Sony or Microsoft because of the popularity of properties such as Mario, Zelda, and Pokemon in China. Nevertheless, progress in the market is likely to be slow, with new titles needing to be individually approved and a big backlog in applications that are believed to have built up during last year’s ban.
Consoles need approval from the Ministry of Culture and Tourism, while software needs permission from the State Administration of Press and Publication.
With Nintendo being able to sell their Switch in China now, it will help its stock prices which had dropped sharply in January due to cutting the project sales of their console. The stock price has been down by 11 percent for the last 12 months.
Photo from CNET