Blizzard Entertainment announced today which will suspend most of Blizzard’s gaming services in mainland China effective January 23, 2023, due to the expiration of current licensing agreements with NetEase. This includes World of Warcraft, Hearthstone, Warcraft III: Reforged, Overwatch, the StarCraft series, Diablo III and Heroes of the Storm. The joint development and publication of Diablo Immortal is covered by a separate agreement between the two companies.
Blizzard Entertainment has had licensing agreements with NetEase since 2008, covering the publication of all of these Blizzard titles in China. The two sides have not reached an agreement to renew the agreements that is consistent with Blizzard’s operating principles and commitments to players and employees, and the agreements will expire in January 2023.
Sales will be suspended in the coming days and Chinese players will soon receive details on how this will work. Upcoming World of Warcraft releases: Dragonflight, Hearthstone: March of the Lich King, and Overwatch 2 Season 2 will continue later this year.
“We are immensely grateful for the passion our Chinese community has shown in the nearly 20 years that we have brought our games to China through NetEase and other partners,” said Mike Ybarra, president of Blizzard Entertainment. “Your enthusiasm and creativity inspire us, and we’re looking for ways to make our games available to players again in the future.”
According to Activision Blizzard, the deal with NetEase contributed about 3% to the company’s consolidated net income in 2021, so it’s possible they’re looking for a publisher that will give them a better profit in the country. It is not known whether the company has entered into talks with national leader Tencent Holdings Ltd. or another local distributor.
Beyond the financial results, the key points leading to the non-renewal of the contract with NetEase were that it sought (partial) control of the intellectual properties and data of millions of gamers across China according to people familiar with the question. . People spoke on condition of anonymity with the Bloomberg site because the conversations weren’t public.
