While rumors of tension had spread this summer, we learn that the partnership between NetEase and Blizzard will not be renewed. The two groups are working on the Nepture project, a mobile game based on the Warcraft license. The project was canceled due to a financial dispute.
Is this the only reason for the split of the two studios? Nothing is certain, but remains important to note that they have not found common ground after 14 years of collaboration. Therefore, from on January 23, the end date of the current contract, NetEase will no longer distribute Chinese versions of Blizzard games: World of Warcraft, Overwatch, Diablo, Starcraft, HearthStone and Heroes of the Storm. Only Diablo Immortal will still be available in the country.
“We are extremely grateful for the passion that our Chinese community has shown during these 20 years of distributing our games in China through NetEase and other partners. Their enthusiasm and creativity inspire us, and we are looking for alternatives to make our games accessible again” – Mike Ybarra, President of Blizzard Entertainment
This is an important announcement considering China’s online gambling laws. In effect, only a Chinese company has the opportunity to operate online games. Blizzard should therefore find a new partner but above all obtain complicated approvals to obtain in the country. It is therefore not impossible that the group’s games will remain inaccessible for a while in China. The latest partnership change between The9 and NetEase had put more than a year to be effective.
The financial impact is likely to be significant for Blizzard, Asia representing 16% of turnover of the group (Blizzard and Activision combined). Although this does not jeopardize the group, we must not forget the financial stakes linked to the fact that Activision Blizzard tends to be bought by Microsoft. In a statement, Blizzard promises to inform the Chinese community very soon how to launch the 9th expansion of World of Warcraft in the country, season 2 of Overwatch 2 and future expansions on HearthStone.
For its part, NetEase, despite an announcement assuring that Blizzard games only represent a tiny part of its turnover, saw its shares lose 9%.