HONG KONG, Wednesday, April 17, 2024 – Chinese tech giant NetEase and Microsoft Corp. have ended a months-long standoff, announcing plans to reintroduce popular titles like “World of Warcraft” to the Chinese market.1
The companies said on Wednesday, April 10, that they were working together to bring online games developed by Blizzard Entertainment, a subsidiary of Activision Blizzard acquired by Microsoft last year, back to China.
The re-launch is expected to begin this summer, targeting the world’s second-largest gaming market.
NetEase served as the official publisher of Blizzard games in China from 2008 to 2023, when a public dispute regarding intellectual property control led to the termination of their nearly 15-year partnership. The fallout resulted in several Blizzard games being pulled from Chinese servers in January 2023, sparking frustration among Chinese gamers.
The renewed agreement extends beyond Blizzard titles. NetEase and Microsoft have also expressed interest in exploring the possibility of bringing NetEase-developed games to Microsoft’s Xbox and other gaming platforms. Analysts believe this collaboration could significantly benefit NetEase’s international presence.
The news comes as a welcome development for NetEase, whose stock price rose by about 2% on Wednesday morning, following a 3% gain on Tuesday fueled by anticipation of the announcement. NetEase is China’s second-largest video game company by revenue, following Tencent.
The return of Blizzard games is expected to be met with enthusiasm by Chinese gamers. Local media reports estimated that “World of Warcraft” alone had roughly five million active players in China after NetEase took over publishing rights in 2009.
The game’s removal from the market in 2023 prompted a wave of online complaints from frustrated users, with over a million seeking refunds for unspent in-game credit.
The rekindled partnership between Microsoft and NetEase signals a potential turning point after a period of tension. The companies were previously locked in lawsuits following the termination of their initial agreement. However, Microsoft’s acquisition of Activision Blizzard in October 2023, coupled with subsequent management changes, paved the way for renewed cooperation.
The agreement includes popular Blizzard franchises like “Warcraft,” “Overwatch,” “Diablo,” and “StarCraft,” according to a joint statement released Wednesday.
Analysts anticipate the re-launch to generate a modest but significant increase in revenue for NetEase.
- reuters.com: https://www.reuters.com/business/microsoft-netease-re-launch-warcraft-game-china-ending-feud-2024-04-10/[↩]
