A Tencent sign is seen during the fourth World Internet Conference in Wuzhen, Zhejiang province, China, Dec. 4, 2017.
Nintendo and Tencent have joined forces in an attempt to bring the Switch to China, and the pair are making significant headway. U Deluxe Switch bundle in mainland China.
Market analyst Gu Tianyi said that releasing the Switch in China is a "massive opportunity" for Nintendo and Tencent.
"What sets Nintendo apart [from competitors like Sony and Microsoft] it that its intellectual property roster - including Mario, Zelda, and Pokemon - is already extremely popular in the market".
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The company reportedly halted work on the tech before December past year, and it may have been stopped long before that too. Two people familiar with the matter said the approval by the Guangdong culture ministry would allow the Switch to be sold nationwide.
Shares of Nintendo were up 13% in mid-morning trading Thursday after Reuters reported the Nintendo Switch console has received permission to be sold in China.
It remains unknown when the console may go on sale in China, with games needing to clear a separate approval process.
With respect to the "next-generation" Nintendo Switch, Nikkei states that its release has been postponed due to current issues with software and power consumption. Beyond that, it seems Tencent has been given permission to distribute a test version of New Super Mario Bros.
The regulator has started to give the green light to games again but sources have told Reuters that it faces a big backlog.