NetEase and Blizzard Rekindle Partnership for China's Gaming Market
NetEase and Blizzard Entertainment are reportedly reuniting to bring back Blizzard's games to China, as per sources close to 36Kr ( a Chinese news outlet platform). The collaboration marks a significant turnaround after the two gaming giants parted ways earlier, leading to the shutdown of Blizzard's Battle.net in China on January 24, 2023, ending a 25-year operation.
The renewed partnership signals a crucial development in the Chinese gaming sphere. NetEase, despite the relatively small revenue contribution from Battle.net, recognizes the strategic importance of PC gaming. In 2022, NetEase's PC gaming revenue accounted for about 30% of its total gaming revenue, significantly higher than Tencent's 22%.
The past year saw rumors of potential collaborations between Tencent, NetEase, and Blizzard, but none materialized. The stringent profit-sharing terms initially set by Blizzard made negotiations challenging. However, recent shifts in Activision Blizzard's management, particularly following Microsoft's acquisition and the departure of CEO Bobby Kotick, may have facilitated this reunion.
As NetEase and Blizzard prepare to rebuild their operational team and test servers, players may need to wait several months for the relaunch of popular titles. This partnership revival underscores the enduring value of mature IPs in an evolving gaming landscape increasingly constrained by regulatory measures.
Source: 36Kr