Niko: China will spend $1.5 billion on console gaming by 2023

In certain key regions of the world, consoles are king for traditional game releases. Consumers in the United States spend more on console games than PC, for example. But that dynamic is not universally true. In China, consoles have only just started to find their footing after the government ended its ban on such devices in 2014. Now, console gaming is quickly approaching $1 billion in annual revenue, according to a new report from intelligence firm Niko Partners. And console revenues may reach $1.5 billion by 2023.

Nintendo, Microsoft, and Sony have all launched devices in China over the last several years. The Xbox One debuted in the country in 2014. Sony launched the PlayStation 4 later that same year. Now, after testing out other hardware, Nintendo is partnering with publishing giant Tencent to release the Switch, according to a Reuters report. And with Sony and Microsoft planning to launch next-generation followups for their Xbox and PlayStation boxes, those companies are likely factoring China into their plans in a major way.