Only if they're giving it away for free. Otherwise, they're pretty much engaging in textbook capitalism.
Remember the late '80s and early '90s, when everyone expected and every sci-fi novel predicted a future world with Japan as the dominant power? Turned out, Japan's young people love fast food, video games and Hollywood movies as much as, if not more than, anyone else's. China will eventually go the same way.
Enemies of the West claim, and have forever, that our "decadence" will be our undoing -- instead, it's becoming our chief export. And the more folks discover these kinds of solitary yet social pursuits, the more they interact with the rest of the world while also becoming more individualistic, they're's an Ayn Randian (think "Anthem") revelation.
Think back to 1991. The coup in the USSR was shut down by a grass-roots information revolution that was pretty primitive by today's standards, mostly photocopiers and fax machines. In 1998, the Serbs took down Milosevic with computer bulletin boards in a country that was at least ten years behind ours in computer availability, and spearheaded by B-98 -- which sounds like a soft-rock FM station, which is exactly what it was before it was the vanguard of the revolution.
I'm not as utopian as some, but I believe that every conduit for information is another root breaking through the hard soil, even something like World of Warcraft.
The Chinese are not Islamofascists. The bulk of the Chinese people are not ideologically motivated. They're as selfish and materialistic as anyone else, and I do not mean that as an insult; it's our greatest hope. Every tie to the rest of the world is another tendril creeping through the ChiCom mortar, and every concession they give makes it more difficult to pull back.
It might seem silly to look at World of Warcraft as a conduit for revolution, but jazz helped bring down the USSR. It was exciting. It stirred a yearning for something new, something better. Russians would tune into the VOA to listen, and pass cassettes through the black market.
A former coworker who grew up in Cuba told me that his whole family would listen to Celia Cruz records on Radio Marti, huddled around the radio with the volume low. Couldn't let the neighbors hear, because being turned in for listening meant prison or worse. It was like a small beam of light streaming through a crack in the wall, and people gravitated toward it.
If WoW can be another small crack in the wall, then I hope the Chinese geek the f out on it.
I'm sure all WoW devotees are already familiar with the infamous "Chinese Farmers", who run WoW bots to collect resources, make gold, and sell it in the real world to idiots willing to buy. If Americans/Europeans/Aussies didn't buy it, the practice wouldn't continue, and the various WoW economies wouldn't suffer as a result. But then, as you point out, this really IS capitalism at work, with the Chinese intimately involved in the process. Supply and demand, money to be made.