Due to licensing issues with NetEase, the current holder in China, Blizzard will shut down all its games in that country. The expiration date of the license is January 23, 2023, only fourteen years after the initial partnership between the two companies.
Players in China will no longer have any access to most Blizzard games, including World of Warcraft, Warcraft III: Reforged, Hearthstone, Overwatch 2, Diablo III, Heroes of the Storm, and StarCraft II.
Ironically, however, Diablo Immortal is covered by an entirely separate licensing agreement, given that it was co-developed by NetEase. This game will remain accessible even after Blizzard shuts down the remaining titles.
Blizzard has stated that it has yet to reach a new deal with the Chinese license holder “that is consistent with Blizzard’s operating principles and commitments to players and employees, and the agreements are set to expire in January 2023.”
Mike Ybarra, the current President of Blizzard Entertainment, has acknowledged that the Chinese player base is still a meaningful and viable market. He stated, “we’re incredibly 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…their enthusiasm and creativity inspire us, and we are looking for alternatives to bring our games back to players in the future.”
In its own statement, NetEase claims that “material differences on key terms” surfaced and that the company wanted to protect the “data and assets” of Chinese players. CEO William Ding went further to say, “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.”
The license expiration will apparently have no impact on NetEase’s financials. Moreover, the company revealed that the net revenue and income contribution represent “low single digits” in terms of the percentage concerning the total revenue and income of the company for 2022 and 2021.
NetEase Head of Partnership Simon Zhu went onto social media to post a blunt message hinting that the split was unpleasant. He said that “one day, when what has happened behind the scene could be told, developers and gamers will have a whole new level understanding how much damage a jerk can make.”
Finally, the World of Warcraft mobile game inspired by Diablo Immortal that was in development for three years between NetEase and Blizzard was canceled, supposedly from financial disputes.