While the sale of packaged video games is down, the digital sales of videogames are on the rise.

Following China's market shows that this is a true assertion. Niko is currently trying to figure out the best way to track the size of the illegally downloaded PC game market, in addition to following the illegal and legally sold packaged PC games.

NetEase has declared that even with the licensing of World of Warcraft, they will not be ignoring their in-house developed Fantasy Westward Journey. They will be investing even more resources and capital into the game.

There would be no sense in NetEase ignoring Fantasy Westward Journey because the game has been #1 for many years and has an entrenched user base. Niko has wondered about how the company will prioritize resources between FWJ and WoW, but assuming that they maintain separate dedicated teams for each game, there should not be an issue unless other areas of the company founder and need to draw capital away for their own support.

Microsoft has recently revealed information about their Games On Demand service, including prices and the games that will be released.

If Xbox and the other consoles are going to succeed in China (if and when the ban is lifted), they will need to employ a digital distribution model for their games. This On Demand pricing structure is encouraging. Of course, the pricing will need to be adjusted for China's market if the company were to use it there.