FTS: The NetEase and Blizzard Split will hurt China's gamers

So Blizzard and NetEase weren't able to meet an agreement which ultimately resulted in the companies going their separate ways. The gamers in China will ultimately feel this one. Fingers are kinda pointing in Activision Blizzard's direction on this one.

At times these sorts of things just occur in negotiations, but... a member of the NetEase team wanted us to share with you the reason why the respective organizations could not reach a renewed contractual agreement. Before I deliver this info from the source, Christina Z. (of NetEase) said that they were doing their best to negotiate with Activision Blizzard... in hopes to keep providing great titles to gamers in China, but with today's news... we see that it didn't work out.

I won't say that WoW and StarCraft have replacements that are better or worst, but... there are options out there that we hope gamers are able to enjoy just as much or more if there isn't a change of heart.

I just remember how huge the StarCraft tournaments were alone, so I can only imagine how this will affect the average gamer, but... also those who earn a living through these IPs.

Outside of simply enjoying the games, and earning a living, don't forget about the community around these games. People have gained friends, and fans and some even created families through relationships that happened as a result of the couple's love for select games like StarCraft, etc.

NetEase Announces Non-Renewal of Licenses with Blizzard

 

HANGZHOU, China, Nov. 16, 2022 -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), one of China's leading internet and online game services providers, today announced that it anticipates that its licenses covering the publication of several titles of Blizzard Entertainment, Inc. in China will expire in accordance with their terms on January 23, 2023 and will not be renewed.  The affected games are World of Warcraft^®, the StarCraft^® series, Hearthstone^®, Heroes of the Storm^®, Overwatch^® and Diablo III^®.

"We have put in a great deal of effort and tried with our utmost sincerity to negotiate with Activision Blizzard so that we could continue our collaboration and serve the many dedicated players in China. However, there were material differences on key terms and we could not reach an agreement. We hold high regard in our product and operational standards and abide by our commitments to Chinese players.

We are honored to have had the privilege of serving our gamers over the past 14 years and have shared many precious moments with them during that time. We will continue our promise to serve our players well until the last minute. We will make sure our players' data and assets are well protected in all of our games," said William Ding, CEO of NetEase.

The net revenues and net income contribution from these licensed Blizzard games represented low single digits as a percentage of NetEase's total net revenues and net income in 2021 and in the first nine months of 2022. The expiration of such licenses will have no material impact on NetEase's financial results. The co-development and publishing of Diablo^® Immortal™ is covered by a separate long-term agreement and will continue.

 

About NetEase, Inc.

As a leading internet technology company based in China, NetEase, Inc. (NASDAQ: NTES and HKEX:9999, "NetEase") provides premium online services centered around content creation. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of China's most popular and longest-running mobile and PC games. Powered by industry-leading in-house R&D capabilities in China and globally, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.

Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), China's leading technology-focused intelligent learning company, and Cloud Music (HKEX: 9899), China's leading online music content community, as well as Yanxuan, NetEase's private label consumer lifestyle brand.

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Warcraft Mobile... Scrapped: 3 Years Down The Drain After Financing Dispute

 

Warcraft Mobile could have delivered the WoW-like action some gamers have sought on the go, but... the desired terms didn't ultimately match up. I think it's weird though, because wouldn't you agree on such terms ahead of development?

How in the hell do you get 3 years deep into development with more than 100 developers covering objectives for the title before terms are finalized? Once it's set, it's set... is how I think it should be prior to moving forward (that's how I structured agreements between small devs & publishers). They may have put it on the backburner as far as finalizing the agreement, but if Activision Blizzard & NetEase are going to continue their relationship... they may have to take a step back and revise things.

I think a revision would be better than potentially axing such a money maker, but I understand how things can change if the money gets... funny. You already know who Blizzard is, but if you aren't familiar with NetEase... they're China's #2 game company. NetEase is also the co-creator of... Diablo Immortal.

I hope the relationship survives and changes are made for the better because game projects shouldn't go... poof this far in, and sadly this isn't the first time head-turning projects have been tossed.

For more info on this, check out the Bloomberg article, I just had to chime in and give my two cents.

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