Chinese electronics companies were very fast to respond to the recent regulatory change that reversed the ban on consoles in China. One company quick to respond is Huawei, which announced at CES that it will release a console called TRON in Q2 this year, and it uses NVIDIA GPUs and will be priced under $200. The console can be used to watch online videos as well.   

China's SAPPRFT (the regulatory body that resulted from the 2013 merger of the GAPP and SARFT) stated at the China Mobile Game Industry Annual Summit that the Chinese mobile games market achieved revenue of 11.24 billion RMB ($1.86) in 2013, up 246.9% since 2012. That figure is significantly higher than Niko's forecast of $1.2 billion made in mid-2013, however we cannot confirm what the methodology of the data (reported by IDC) is. It is possible that such fast growth occurred over 2012, but we will do our own analysis as well. 

Niko has stated that we are in "wait and see" mode regarding the newly lifted ban of consoles in China, and the primary reason is that the new regulations have not yet been stated in detail. We know that there will be censorship of games though, and comments by the head of China's Ministry of Culture confirm it. Mr. Cai Wu was quoted as saying: "Things that are hostile to China, or not in conformity with the outlook of China's government, won't be allowed," and he went onto illustrate by saying, "We want to open the window a crack to get some fresh air, but we still need a screen to block the flies and mosquitoes."

Alibaba is setting up its mobile games platform and Alibaba Digital Entertainment to compete head to head with Tencent. Tencent provides 10% of sales revenue back to developers, but Alibaba will share 20% with developers. Alibaba will use Alipay, a popular online payments platform. Strong competition is good for every industry (in our humble opinion).