Armstrong drove to Pan's house and stabbed him.
Armstrong thought his friend was a demon and he heard a voice taunting him to kill him. A month before the incident, Armstrong visited his friend's house with a knife but resisted the "voices to kill".
In an email to the Herald on Sunday this week, Pan's Taiwan-based sister, Lei, wrote: "This has been a very difficult thing for both families. Words can't really express our hearts precisely. We pray for love and blessings always for both families and everyone involved."
Armstrong met Pan at primary school in Auckland's eastern suburbs, and they became best friends.
But as Armstrong's mental health deteriorated so did their friendship.
Armstrong's mother, Mel, told the Herald on Sunday the pair's bond became strained after her son confided in Pan that he had schizophrenia.
Despite their estranged friendship both men stayed in touch online through their shared interest in games such as League of Legends and World of Warcraft.
The pair were fiercely competitive and Armstrong became increasingly embroiled in the online fantasy world. At the time of the killing, Armstrong was receiving specialist care for his mental health through Counties Manukau DHB.
After Armstrong's sentencing, the DHB's clinical director of mental health, Peter Watson, offered his sympathies to both families. The DHB said it had done an internal review and commissioned an external report into Armstrong's' care.
The board was implementing several recommendations after the reviews.
Armstrong's lawyer, Ron Mansfield, said the case highlighted flaws in the care of some mental health patients.
"I don't blame one individual or any of the family. They did everything they possibly could to address the issue. The issue is one of resourcing," he said.
On Wednesday, Armstrong's family said they couldn't understand why their son's medication for schizophrenia had been reduced. They were adamant he was not receiving the right dose of the correct medication in the time before Pan's death.
Mel Armstrong said her son visited a doctor at Te Rawhiti Community Mental Health Centre in Highland Park, part of the DHB, days before the killing.
He was clinically diagnosed with schizophrenia after seeking medical help. "We knew something wasn't right -- he was talking to himself when we went shopping and when he did the dishes," she said.
"We feel let down we weren't told [his medication had been changed]. We told them Byron was talking to himself but they did nothing."
The Armstrongs are writing a letter of apology to the Pans.