Gaming consoles are technically illegal in China. But, in every major city - and in some smaller cities, there are shops everywhere. Go to Guangzhou and take a look at the subway stations near the universities, there are huge gaming shops. Pretty much any release you want comes into the mainland through Hong Kong - so most of my PS3 titles I purchased over the years are PS3 releases that usually come with bilingual manuals in English and Chinese, and sometimes the game itself will be in Chinese or English. This was the case with at least a dozen titles I can remember off the top of my head.
If you want to know more about the Chinese gaming scene, check out
www.tgbus.com. It's probably one of the biggest gamers portals in the mainland. There are a lots of gamers, tons of people have consoles, and it's not nearly as backwards as everyone thinks. Of course, due to the fact that piracy is so prevalent, you don't see as many players on live or PSN, but they're around and you can usually hook up with a few through the forums if you're interested in gaming with them or practicing your Mandarin. So yes, while gaming consoles are "illegal," so is pornography, yet it's available in almost every electronics mall or shopping center if you look in the right places.
Just another poorly written article by a western journalist with little knowledge of what really goes on there. If you go to a Chinese city, you should be able to find a games shop. Ask around - a simple sentence like "nali mai dianzi youxi?" is probably sufficient.
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