Well, just like Japan, I believe chinese will have a very strong domestic development suited for the taste of the local player, than, the restricts toons over western games wouldn't impact so much. China may have a huge poor population, but, it also has a huge middle class with disposable income to spend with so called luxury.
Of course it won't be bigger than Japan in the next decade or so, but, if the big three or even a future local company make the right choices for the long term I can't see why it wouldn't be one of the biggest markets for console gaming. If I'm not mistaken China is already the biggest market for mmos, pc gaming is very strong there.
The secret for making money in underdeveloped countries is to rethink the business model for better suiting the country's reality. Like now, when Apple here in Brazil through a partner retail chain is offering the iPhone 4s financed in 24 months of 50 BRL. The monthly payment is something the average worker can pay, and apple profits with the sale and interest taxes.
Just saying in countries like the BRICS, there is lots of people that are crazy to buy the same stuff people in developed countries do, they just don't have the money to do so, and in order to get their diseres fulfilled immediately many don't mind making long term financings and pay in the end 2 or even 3 times the price.
Just like China, loads of repressed demand.
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