Console gaming is heavily regulated in China and Tencent has a strong monopoly on mobile gaming that "encourages" people to blow money on mobile gaming.
This, definitely. Plus the usual propaganda garbage that they can't have games released there which might 'taint' the precious and fragile psyches of the best people in the world or whatever BS the CCP comes up with.
Less hyperbolic is the cost of the console in the first place. Console gaming is a first world luxury far beyond most other past-times which also doesn't suffer as much from being status symbols as other things. Further, the buying power of the local currency (in terms of necessities) far outstrips its actual value in international currency markets. Compound that with the median (not mean/average, please note, but even then...) salary in these countries is way, way, way, waaaaaaaaaaaaaaaaaaaaay lower than what is remotely comfortable to make even a casual habit of console gaming. For those who can afford to do any gaming, it needs to be multi-functional to get most value out of it. Given what's available, consoles can only be for gaming which makes them not worth the cost.