'World of Warcraft' battle heats up as NetEase rejects Blizzard offer
Send a link to a friend
[January 18, 2023] By
Josh Ye
HONG KONG (Reuters) -Chinese games publisher NetEase Inc NTES.O said on
Wednesday it has rejected a proposal from Activision Blizzard Inc to
extend their long-time partnership for six months, as the U.S. game
developer looks for a new partner.
NetEase said the proposal was "commercially illogical" and accused the
U.S. firm of "seeking a divorce but still remaining attached," in a rare
public display of acrimony between the two gaming giants.
Blizzard said in November it would end its 14-year partnership with
NetEase - sending shockwaves across the industry as the partnership was
widely seen as one of the most lucrative in video games.
The companies had been unable to agree on key terms of cooperation and
hits such as 'World of Warcraft' will not be available in China, the
world’s largest gaming market, from Jan. 23.
NetEase said Blizzard reached out last week with an offer to extend the
partnership for six months but also made it clear that it would not stop
negotiating with other potential partners.
"Considering the non-reciprocity, unfairness and other strict conditions
attached to the cooperation, the parties could not reach an agreement in
the end," China's second-largest gaming company said in a statement.
The exact sticking points that soured the deal, which started in 2008
and was renewed in 2019, remain unclear.
A person close to Blizzard said the dispute that scuttled the renewal
revolved around commercial terms rather than data issues as some media
had reported.
[to top of second column] |
Copies of World of Warcraft: Mists of
Pandaria video game published by Activision Blizzard, owned by
Vivendi, are displayed in a shop in Rome, October 16, 2012.
REUTERS/Tony Gentile
The person, who declined to be identified due to the sensitivity of
the issue, said NetEase had proposed to make structural changes to
the partnership that would affect Blizzard’s control over its
intellectual property (IP).
In its statement late on Tuesday, NetEase said it had never
requested control over IP from Blizzard or any other partners as a
publishing company over the past 14 years.
“Any usage and licensing of Blizzard’s IP were done in accordance
with contract terms and with Blizzard’s consent and approval,” it
said.
Activision Blizzard did not immediately respond to a Reuters
request for comment.
With the demise of their partnership, Blizzard is currently without
a Chinese publisher. Unlike other countries, foreign gaming
companies typically need a Chinese publisher before they can release
games in China.
NetEase rose to become a gaming giant partly by publishing
Blizzard's games in China. It has since accelerated its own game
development capability, with in-house games now accounting for more
than 60% of revenue.
(Reporting by Josh Ye; Editing by Anne Marie Roantree, Edwina Gibbs
and Kim Coghill)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|