NetEase, the second-largest gaming company in the country, will be the reason why most of the games from the California-based publisher will be suspended.
The 14-year partnership between the two giants is about to end. For the past 20 years, the company has provided gaming services in China through various partners.
Most of the titles will no longer be available in China in January of 2023. That also includes the likes of World of Warcraft, Reforged, and StarCraft. There is an agreement between the two companies. It's possible that the game will continue in China.
Each company's response explained how they ended the marriage.
The agreements that are in place for players and employees are set to expire in January of next year, according to the company.
China's gaming industry has been hit with heavy-handed regulations over the last few years but there is a silver lining. China's state media outlet People's Daily published an op-ed this week titled "the opportunity in the gaming industry cannot be missed".
There are alternative publishing partners that are required for foreign games that serve the market that are available. Mike Ybarra, president of Blizzard Entertainment, said, "We're immensely grateful for the passion our Chinese community has shown throughout the nearly two decades we've been bringing our games to China through NetEase and other partners." We are looking for alternatives to bring our games back to players in the future.
Even if a new partner is found, the process of applying for regulatory permits for its franchise of games could be difficult. The approval process for video games in China has been slowed down due to strict regulations.
NetEase's bottom line doesn't seem to have been affected by the end of the partnership. The firm said in a statement that the net revenues and net income contribution from the licensed games was low as a percentage of NetEase's total net revenues and net income.
NetEase's shares plummeted on the news.
NetEase said that they held high regard in their product and operational standards and abided by their commitments to Chinese players.
NetEase might be unhappy with how the company operates in China. The divorce doesn't seem to be an easy one. Simon Zhu is the president of global investment and partnership at NetEase Games.
I will not have access to my account next year as I spent ten thousand hours in the world of Azeroth. One day, when what has happened behind the scenes can be told, developers and game designers will have a better idea of how much damage a jerk can do. Feel bad for people who lived in those worlds.
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