Blizzard Entertainment ends partnership with NetEase to distribute its games in China

Blizzard Entertainment’s World of Warcraft, Hearthstone, Warcraft III: Reforged, Overwatch, StarCraft II, Diablo III, and Heroes of the Storm will no longer be available in China as of January 23, 2023.

Despite partnering with NetEase since 2008, renewed in 2019 due to the release of numerous games in China, the two parties have not reached an agreement to renew contracts while respecting Blizzard Entertainment’s operating principles and commitments to players and employees.

World of Warcraft, Hearthstone, Heroes of the Storm and other games will no longer be offered in China after Activision Blizzard ends its relationship with NetEase. https://t.co/0eDdM5jCxw $ATVI $NTES

— Nikkei Asia (@NikkeiAsia) November 17, 2022

Mike Ybarra, President of Blizzard Entertainment, said:

We are immensely grateful for the enthusiasm our Chinese community has shown for nearly twenty years in bringing our games to China through NetEase and other partners. Their enthusiasm and creativity inspires us and we are looking for alternatives to bring our games back to players in the future.

End of partnership between Blizzard Entertainment and NetEase

Financial terms aside, the main stumbling blocks to NetEase’s contract renewal were intellectual property and control over the data of millions of players across China. China accounted for at least 3% of Activision’s net revenue in 2021 and is an important driver of future growth. Last year, it also generated over $400 million in esports revenue and over 400 million fans, thanks in part to the Overwatch league, which includes Chinese teams. Prior to NetEase, Blizzard Entertainment distributed World of Warcraft in China through Shanghai-based The9 from its release in 2004 until 2008. But this partnership ended in conflict: Chinese players were unable to access the game for more than a month.