Japan's Sony has signed a partnership in China to manufacture and sell its PlayStation consoles on the mainland.
The deal, formed as two joint ventures with Shanghai Oriental Pearl, gives Sony access to an estimated 500 million gamers in China.
China has had a ban on gaming consoles since 2000, citing their adverse effect on the mental health of young people.
But in January, the government said it will allow foreign firms to manufacture and sell consoles.
China's gaming market, which is currently dominated by PC, mobile and online games, is seen as a key growth area for console makers.
The two partnerships are both with Shanghai Oriental Pearl, one gives Sony a 70% share and the other a 49% stake and both will operate out of Shanghai's free trade zone.
(BBC)