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NetEase-Blizzard break-up raises speculation on next China operator of World of Warcraft, other US games amid tightened regulation
- Blizzard may turn to Tencent, which has strong distribution channels and experience in operating foreign game franchises, according to analysts
- Total revenue in China’s video gaming market, the world’s largest, is forecast to reach US$45.44 billion this year
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The end of the 14-year licensing agreement between Chinese video gaming giant NetEase and US game publisher Blizzard Entertainment has raised speculation on the potential next moves of the two companies, as gamers on the mainland mourn a break-up that will become official early next year.
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Hangzhou-based NetEase and Blizzard Entertainment, a subsidiary of video game holding company Activision Blizzard, on Thursday separately announced that the publishing licence covering several Blizzard-developed titles – including World of Warcraft, Overwatch, Hearthstone and Diablo III – on the mainland will not be renewed because the two sides could not reach a deal. The licence expires on January 23.
Blizzard may look for a new partner in China, the world’s biggest market for video games, while NetEase could develop its own premier games for a global audience, according to an analysis published on Thursday by Niko Partners, a market research and consulting firm covering Asia’s video gaming market.
James Ybarra, president at Blizzard, hinted at a potential new alliance in the company’s statement on Thursday, when he said: “We are looking for alternatives to bring our games back to players in the future.”
This is not the first publishing agreement in mainland China that Blizzard has ended, according to Niko. Blizzard’s initial alliance was with Shanghai-based online game operator The9 in 2004 for World of Warcraft.
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