After it failed to reach an agreement with China’s Netease Games, US gaming giant, Blizzard Entertainment will suspend most, if not all of its services in China starting this January 2023. Both Netease Games and Blizzard Entertainment where not able to extend their 14-year licensing agreement, since started 2008.
It’s unclear how failed extension will affect both companies and but all is not lost, since Blizzard’s mobile game Diablo Immortal will continue operating under a separate agreement with NetEase.
Here’s the official announcement by Blizzard Entertainment;
IRVINE, Calif.–(BUSINESS WIRE)–Nov. 16, 2022– 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.”
Partnership like this is not uncommon in the gaming industry, since Riot Games partnered with Chinese gaming company Tencent distribute League of Legends in the country before the Chinese company acquired Riot Games for around $400 million.
