NetEase and Activision Blizzard Resolve Dispute, Bringing Popular Games Back to Chinese Market
China’s NetEase and games publisher Activision Blizzard have resolved their dispute, allowing popular games such as World of Warcraft to return to the Chinese market this summer. Last year, the 14-year partnership between NetEase and Activision Blizzard came to an end due to disagreements over intellectual property control, sparking outcry among millions of Chinese internet users who feared losing access to their favorite games.
All games require a local publisher and licenses from the Chinese government to operate in the country. The disagreement between NetEase and Activision Blizzard escalated into an open feud, with both companies suing each other. However, the tension eased after Microsoft’s acquisition of Activision Blizzard for $69 billion in October 2021, marking the gaming industry’s largest-ever deal.
Johanna Faries, president of Blizzard Entertainment, expressed gratitude for the passion shown by the Chinese community for Blizzard games and emphasized the company’s commitment to bringing back their universes to players with excellence and dedication. In addition to World of Warcraft, other Blizzard titles set to return to China include Hearthstone, Warcraft, Overwatch, Diablo, and StarCraft franchises.
China, as the world’s largest online gaming market, experienced a 13% increase in domestic revenue, reaching 303 billion yuan ($42 billion) by the end of last year. NetEase, the country’s second-largest video game company by revenue after Tencent, will also explore bringing new titles to Microsoft’s Xbox gaming consoles and other gaming platforms in collaboration with Microsoft.
Notably, China’s gaming sector has faced regulatory challenges, including restrictions on online gaming hours for minors and limitations on in-game purchases. Despite these challenges, the return of popular gaming titles to the Chinese market signifies a positive development for both players and the gaming industry.