Sony Computer Entertainment's Asian wing has confirmed plans to enter and invest in the Chinese market.
The firm will embark on training and R&D programmes in the Guangdong province, reports China Daily, ultimately leading to homegrown game development projects.
These will reportedly feature 'Chinese elements' but will be created for international rather than purely domestic audiences.
The move is in partnership with Guangdong Animation City, which is contributing $227 million to the new enterprise.
Sony is apparently seeking to launch PlayStation hardware in China, a country whose government is notoriously resistant to consoles. Hardware-makers have also been traditionally deterred by China's spectacularly high piracy rates.
While there is no timetable for a Chinese launch, projections for the planned new PlayStation business (with the contribution of other developers) have it turning over around $15 billion within the next five years.