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US publisher Blizzard pushes ahead with suspension of games in China after NetEase rejects 6-month extension of partnership

  • NetEase says it rejected the offer because it was ‘unfair’ that Blizzard was negotiating with other companies for a three-year term at the same time
  • Operations of popular Blizzard games on the mainland, including World of Warcraft and Overwatch, will be suspended from January 23

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Blizzard Entertainment will provide a new function to enable its users in mainland China to store their World of Warcraft game data on their own devices. Photo: Shutterstock
Ann Caoin Shanghai
US video game publisher Blizzard Entertainment will next Monday suspend the operations of World of Warcraft and its other popular online games in mainland China, following failed talks with NetEase for a six-month extension of their licensing agreement.
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Hangzhou-based NetEase rejected the proposed extension offered by Blizzard last week, according to a statement on Tuesday posted by the US firm’s local office on Chinese microblogging service Weibo. The short-term extension was an option under the two companies’ most recent deal in 2019.

“Unfortunately, NetEase is unwilling to extend the game service for six months based on the existing cooperation terms, while we are looking for a new partner, so that everyone can continue to play during this time,” the Blizzard post said.

NetEase and Blizzard, a subsidiary of video game holding company Activision Blizzard, separately announced last November that their 14-year licensing agreement on the mainland – covering several Blizzard-developed titles including World of Warcraft, Overwatch, Hearthstone and Diablo III – will conclude on January 23 because the two sides could not reach a new deal.
Chinese internet and video gaming giant NetEase has moved on from its relationship with Blizzard Entertainment after turning down a proposed six-month extension of its licensing agreement with the US game publisher. Photo: Shutterstock
Chinese internet and video gaming giant NetEase has moved on from its relationship with Blizzard Entertainment after turning down a proposed six-month extension of its licensing agreement with the US game publisher. Photo: Shutterstock
Blizzard’s six-month extension offer, however, was made after the local team responsible for operating its games on the mainland was disbanded. Most of that team under NetEase affiliate Shanghai EaseNet Network Technology was already laid off, while others were transferred internally, according to a South China Morning Post report last week, citing three people familiar with the matter.
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