After 15 months of separation, Blizzard Entertainment and NetEase Games have announced a new licensing agreement that will put Activision-Blizzard games back into the Chinese market.
Blizzard and NetEase are coming together once more.
In a shared statement, Microsoft’s giant game subsidiary and the Hangzhou-based tech titan made their new partnership public.
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The renewed publishing deal will see the return of popular titles World of Warcraft and Hearthstone – as well as “other titles” within the Warcraft, Overwatch, Diablo, and StarCraft franchises – in China through the domestic publisher.
Blizzard and NetEase renew deal to bring World of Warcraft, Overwatch, and more back to China
The full statement also shared future plans to bring upcoming NetEase games to Xbox “and other platforms”.
William Ding, Chief Executive Officer and Director of NetEase went on record to praise the digital detente. “Celebrating our collaborations, we are thrilled to embark on the next chapter, built on trust and mutual respect, to serve our users in this unique community that we’ve built together”, remarked Ding.
Blizzard Entertainment and NetEase Games began their mutual publishing deal back in 2008, but failed to renew the licensing agreement at the start of 2023.
Both Blizzard and NetEase gave their own reasons for letting go of their long-standing licensing agreement.
According to a statement by NetEase in January 2023, Blizzard’s proposed terms for a six-month extension were unfair and “not in line with business logic,” which spelled the end of the relationship.
Activision-Blizzard’s investor site reported the company’s reason for not extending the agreement to 2023, deeming NetEase’s restructured offer “[inconsistent] with Blizzard’s operating principles and commitments to players and employees.”
NetEase stock price took a big nosedive in domestic markets after both companies failed to find an extension, seeing a 15% drop in value at the Hong Kong Exchanges (HKEX).
After their big split, Blizzard and NetEase were embroiled in numerous lawsuits and countersuits that alleged intellectual property infringement, refund costs and unfair competition. Both sides later dropped all lawsuits.
In the same year, Microsoft’s controversial merger with Activision-Blizzard took place. The controversial US$69 billion deal eventually pushed through following a ruling by a federal judge last July. A rapprochement with NetEase was expected after the acquisition.
The bolstered partnership between Blizzard and NetEase will give the US games conglomerate access to the most profitable gaming market in the world, and stimulate both markets down the line.
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