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[Kacho]

Blizzard Entertainment, Inc. announced today that it will be suspending most Blizzard game services in mainland China due to the expiration of the current licensing agreements with NetEase, Inc. on January 23, 2023.

This includes World of Warcraft®, Hearthstone®, Warcraft® III: Reforged, Overwatch®, the StarCraft® series, Diablo III®, and Heroes of the Storm®. Diablo Immortal® co-development and publishing is covered under a separate agreement between the two companies.

Blizzard Entertainment has had licensing agreements with NetEase since 2008, covering the publication of these Blizzard titles in China. The two parties have not reached a deal to renew the agreements that is consistent with Blizzard’s operating principles and commitments to players and employees, and the agreements are set to expire in January 2023.

We will suspend new sales in the coming days and Chinese players will be receiving details of how this will work soon. Upcoming releases for World of Warcraft: Dragonflight, Hearthstone: March of the Lich King, and season 2 of Overwatch 2 will proceed later this year.

“We’re immensely grateful for the passion our Chinese community has shown throughout the nearly 20 years we’ve been bringing our games to China through NetEase and other partners,” said Mike Ybarra, president, Blizzard Entertainment. “Their enthusiasm and creativity inspire us, and we are looking for alternatives to bring our games back to players in the future.”

Blizzard Entertainment and NetEase Suspending Game Services in China

Blizzard Entertainment, Inc. announced today that it will be suspending most Blizzard game services in mainland China due to the expiration of the cur

www.businesswire.com

Pretty big news here when you consider Blizzard has changed their business to cater to the Chinese market. I wonder what this means for the future of games developed by Blizzard.

 

[Magic Carpet]

Take the Microsoft 8 billion penalty fee and retire.

 

[Saber]

No Reforged and Immortal?
I see that as a win.

 

[Ezekiel_]

 

[LiquidMetal14]

I'm proud of them

 

[Jennings]

Blizzard has had one goal in recent years, one. China.

This pause in service won't last long. I don't care if they have to marry an ugly daughter for the good of the kingdom, they'll fucking do it.

You don't sell your soul and let the devil renege.

 

[{insert code here}]

Win for Chyna.

 

[reksveks]

Immortal is covered by a different agreement

 

[jigglet]

I'm proud of them

I don't buy it. I don't think it was a pull out due to principles. They're pulling out cause they couldn't negotiate a deal to stay.

 

[Last Hearth]

I think they did it because they feared the backlash in the west if it got out that they agreed to it.

But it wasn't because they couldn't negotiate a deal. From what I hear basically NetEase insisted on it because it's Chinese law now, and Blizzard said they can't do it. So there really wasn't anything else to discuss.

 

[Kacho]

 

[Three]

Looks like some possible bad news for ABK. It couldn't get a new proposal in
https://www.reuters.com/technology/...sal-extend-partnership-six-months-2023-01-17/

 

[Three]

But it wasn't because they couldn't negotiate a deal. From what I hear basically NetEase insisted on it because it's Chinese law now, and Blizzard said they can't do it. So there really wasn't anything else to discuss.

Seems like ABK wanted it but netease rejected it if the new article is anything to go by.

 

[reksveks]

Seems like ABK wanted it but netease rejected it if the new article is anything to go by.

"Considering the non-reciprocity, unfairness and other strict conditions attached to the cooperation, the parties could not reach an agreement in the end," China's second-largest gaming company said in a statement.

Basically they couldn't negotiate terms on either side.

The person, who declined to be identified due to the sensitivity of the issue, said NetEase had proposed to make structural changes to the partnership that would affect Blizzard’s control over its intellectual property (IP).

In its statement late on Tuesday, NetEase said it had never requested control over IP from Blizzard or any other partners as a publishing company over the past 14 years.

“Any usage and licensing of Blizzard’s IP were done in accordance with contract terms and with Blizzard’s consent and approval,” it said.

Weird if it's around IP usage

 

[Revolutionary]

 

[Three]

Basically they couldn't negotiate terms on either side.


Weird if it's around IP usage

I wonder if Netease are a little spooked about the IP rights with regard to distribution particularly with the looming acquisition. What could these "strict conditions" mean in terms of what Netease wants to do as publisher that Blizzard restricts? A restriction on cloud and subs? No creative control on marketing? the fact that it was just a 6month extension?

Everything was OK since 2008 and now they can't seem reach an agreement. Maybe that's for the best.

 

[akaFullmetal]

This seems like aess, what's going to happen now for China players. That's it, it's done or a new company will come in?

 

[ThatStupidLion]

damn. think of all the man hours china gets back now

 

[The Cockatrice]

Not sure if savage or petty. Either way, maybe this is for the best and Blizzard can finally make games like they used to. A huge fucking maybe but you know, hope dies last I guess. We need more sci-fi good shit in our lives and the Starcraft IP is too amazing to just stagnate.

 

[hlm666]

That you frenchy?

Chyna.

 

[DeepEnigma]

If they left it there a little longer, it would have collapsed on it's own. Made in China has a short shelf life.

 

[AJUMP23]

I guess that settles it then.

 

[reksveks]

damn. think of all the man hours china gets back now

does feel like something that the US/West 'manosphere' would be saying and possible advocating for

 

[Last Hearth]

There is an update to this news that's pretty hilarious.

Blizzard just announced their Hearthstone international tournament and apparently no resident of China can participate because there are no Chinese servers.

But that is going to be really awkward this summer because China is hosting the Asian Games. And for the first time there are 8 events that are E-Sports events with gold medals to be handed out, and one of those events is Hearthstone. So there is going to be a Hearthstone event in the Asian games in China where Chinese teams can't compete in, or the event will removed from the Asian Games.

 

[ChorizoPicozo]

how this changes the valuation/stocks of this company? huge deal or meh?

 

[reksveks]

how this changes the valuation/stocks of this company? huge deal or meh?

Not sure, based on some data that I need to verify. All of APAC is about 12% of the ABK business so it probably would have a decent but not huge impact.

I wouldn't put it pass ABK from finding another distributor (One that maybe is already working with them on Diablo Immortal) but there will be some 5-8% impact on revenue.

The issue will be that ABK stock is staying rather more stable due to the ABK so if the deal was to fail, there would be multiple things that cause the price to decrease.

 

[FlaffySheeby]

This is so weird considering how much both Activision and Blizzard have wanted to pander to Chinese markets for years.

I do feel for those Chinese players though. It would be rough to have something ripped away from you that you've spent so much time with.

 

[TheThreadsThatBindUs]

I remember the stories of the Chinese WOW player who died because he never went to work, ate, or slept.

Kinda crazy for the group of Chinese players who are dedicated to the game just to see it now torn from their hands. Super shitty.

 

[Fuz]

AAAAAAAAAAAAAAAAAAAAND...




lol

 

[Miyazaki’s Slave]

AAAAAAAAAAAAAAAAAAAAND...




lol

Shocker...it looks awesome.

 

[Moochi]

Blizzard should have had a WoW 2 ready to go decades ago. Nothing they have done since the Activision merge has come close to their work prior. I dreamed I was playing a new WoW last night--haven't played it in over a decade, but the memories of adventuring on a wide open world have stayed with me. And even though the lore was all lifted from other properties, vanilla WoW imbued everything with its own sense of style, and getting upgrades actually felt cool.