Take a look at the new I-Dong, another contender in the set top box race in China where consoles are banned. Earlier this year a Lenovo business unit announced the eBox to compete against Kinect and Wii. The I-Dong also falls into that category, as does China Telecom's entrant the Tigan Youxi. Foreign console makers await potential regulatory changes that would allow them to sell game consoles in China as well, and are probably scratching their heads wondering how these other products have been allowed on the market despite the ban.

NetEase continued its strength in Q3 2010 thanks to the long-standing hit Fantasy Westward Journey, the blockbuster global sensation World of Warcraft, and two relatively newer titles Heroes of Tang Dynasty and Tianxia II. WoW's Wrath of the Lich King lauched August 31^st in China, and NetEase is hopeful that Blizzard's StarCraft II will be approved for launch in 2011. The company reported revenues of $210.7 million for Q3 2010, up from $132.3 million in Q3 2009.

Online game service revenues of Perfect World reached $77 million in Q3, down sequentially from Q2, partially due to weaker results for their title Battle of The Immortals and Fantasy Zhu Xian, according the company news release for Q3 2010 earnings. The positive news though was that revenues came in higher than previously estimated and 12% higher than in Q3 1009. Perfect World continues to actively pursue international markets as well as domestic sales.