NetEase Inc. has reached a new agreement with Microsoft Corp.'s Blizzard Entertainment to distribute games in China, repairing a 15-year relationship and bringing back titles such as: world of warcraft For the world's largest game market.
With this deal, the famous franchise will: star craft, Diablo, hearthstone and overwatch It will be live again for players in China. NetEase shares plunged 15% in Hong Kong after the Hangzhou-based publishing giant and Microsoft subsidiary Activision Blizzard called off their long-standing partnership in January last year after failing to agree on an extension.
Separately, Microsoft's gaming division and NetEase have agreed to explore bringing new NetEase titles to Xbox consoles and other platforms, the companies said in a statement.
NetEase shares rose as much as 2.4% in the Hong Kong market on Wednesday, after rising 4.1% the previous day on speculation about Blizzard's game revival.
“We are embarking on our next chapter, built on trust and mutual respect, as we continue to serve our users in this unique community we have built together,” NetEase CEO William Ding said in a statement. We're excited to be able to offer it.” The expiration of the previous contract turned into a difficult situation, with both sides claiming that there had been bad faith negotiations to renew the contract.
Blizzard suspended most online gaming services and sales in mainland China, ending a win-win cooperation when a previous agreement expired more than a year ago. Major release in June 2023—Diablo IVAlthough it got off to a hot start internationally, it is not officially available in China. The companies currently say that Blizzard games will “gradually return to market” starting in the summer, with further details to be provided at a later date.
In a letter to Chinese players on Weibo, the companies said they needed time to restart services and resolve technical issues such as rebuilding server rooms and restoring various data. Account progress will be saved once the server is available.
When the server was shut down last January, NetEase shattered a giant statue. world of warcraft's legendary Gorehowl ax was installed on the Hangzhou campus, and the demolition was livestreamed. The two companies are currently creating a new sculpture of the weapon that symbolizes their partnership, and have promised fans that they will continue to work closely together.
Activision Blizzard was acquired by Microsoft in October in a $69 billion deal, setting a record for an acquisition in the video game industry. The combined company, ranked third among global game publishers after Tencent Holdings and Sony Group, was expected to seek closer access to NetEase.
The distribution agreement between NetEase and Blizzard, first signed in 2008 and renewed in 2019, benefits both companies, providing NetEase with globally recognized hits and giving its U.S. partner the world's largest PC and mobile distribution agreement. It gave me an entry into the gaming field.
