Nintendo share price surges after China lifts console ban

January 9th, 2014, 00:23 Posted By: wraggster

Nintendo's share price rose almost eleven per cent following China's decision to lift a ban on the sale of foreign video game consoles.
Pending government approval for individual companies, the suspension of the near 14-year ban will enable foreign firms such as Sony, Microsoft and Nintendo to manufacture game consoles within Shanghai's free trade zone and sell their products across the country.
Following the announcement, Nintendo's share price rose nearly eleven per cent on the Tokyo Stock Exchange, from ‎14,380 ($136.92) to ‎15,850 ($150.90) by Tuesday's end, the BBC reports.
Nintendo had previously circumvented the ban with the iQue, an all-in-one Nintendo 64 console and controller that could be pre-loaded with games rather than using cartridges. It also enjoys success in China with iQue versions of its handhelds.
However, the lifting of the ban will allow Nintendo to legally release Wii and Wii U to a large and potentially lucrative new audience.
Chinese government ministries originally decided to ban consoles in 2000 due to fears about the impact games were having on young people, leading to an increase in popularity of PC gaming in internet cafes.
Despite the ban, consoles have remained available in China through illegal means, although most game players currently enjoy the pastime on PCs and smartphones.

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