Insiders report that NetEase and Blizzard Entertainment may be on the verge of reuniting, following public criticism of "Blizzard indifference" and lack of commitment. Rumors have circulated that Blizzard has been in discussions with several Chinese game developers about relaunching its services in China and has ultimately decided to re-partner with NetEase.
Once the collaboration is confirmed, both parties will need to rebuild the Chinese service operations team and test servers and related systems, suggesting that the game relaunch could take six months or longer.
When approached for comment, Blizzard mentioned that there were no new updates to share, while NetEase did not respond. Insiders have suggested that multiple signals point to a potential reconciliation between NetEase and Blizzard. However, they also indicated that the new partnership model for the Chinese service is still being confirmed, and a relaunch before the Spring Festival seems unlikely.
Other sources suggest that the official decision for the Chinese service agency is expected around New Year's Day, with server tests and subsequent launch possibly taking over half a year.
Previously, it was reported that Blizzard was negotiating with several developers, including NetEase and Tencent, about the return of its Chinese service, but no definitive partner or timeline had been established. Speculations about Blizzard's return to the Chinese market have been fueled by various activities, including a suspected live stream related to World of Warcraft by Tencent's Magic Cube Studio, which was abruptly terminated but still displayed the game's logo.
Public records show that Magic Cube Studio is one of Tencent Interactive Entertainment's four major studio groups. Tencent responded that the incident was merely a live-stream test that had concluded. Close sources to Tencent also stated that Magic Cube, being an in-house studio, would not represent external products, dismissing rumors of its representation of Blizzard's Chinese service. However, Tencent did not directly address whether it would represent Blizzard's Chinese service.
Multiple public signs point to a potential re-collaboration between NetEase and Blizzard. On December 15, several players reported receiving messages from NetEase with the text: "NetEase: Warcraft returns! For the first time! For free!" Although this was a promotional message for a new version of "Diablo Immortal," the specific mention of "Warcraft returns" seemed to hint at NetEase potentially representing Blizzard's games again.
Sources close to NetEase revealed that the disagreement between NetEase and Activision Blizzard CEO Bobby Kotick was a primary reason for the partnership's halt. Kotick had reportedly demanded a substantial advance payment for the renewal, a move seen as financial manipulation by NetEase, prompting the cessation of their collaboration.
Blizzard's conditions for renewing the partnership with NetEase reportedly included demands for higher revenue and profit shares than in previous contracts and global pricing synchronization for Blizzard games, which traditionally have been priced 20% lower in China. Additionally, NetEase would need to develop other Blizzard IP mobile games for global release, enjoying only revenue sharing from the Chinese market. This has been seen by some as Blizzard's attempt to capitalize on NetEase's operations.
However, according to foreign media, Kotick is set to resign on January 1, 2024. He had previously stated his commitment to aiding the transition, with hopes for a smooth integration for the team and players. Insiders close to the Warcraft project suggested that Kotick's departure might significantly facilitate the reconciliation between NetEase and Blizzard. Blizzard's interest in returning to China reflects the importance it places on the Chinese gaming market.
On July 15, Blizzard President Mike Ybarra responded to inquiries about the Chinese server's potential reopening, expressing his keenness to facilitate its return as soon as possible. Microsoft's acquisition of Activision Blizzard in October this year has not resulted in any definitive information regarding Blizzard's return to China.
Notably, the Chinese gaming market has seen considerable activity recently. On December 25, the National Press and Publication Administration approved 105 new domestic game titles, marking the first time the number of approvals has exceeded 100 in a single batch. This brings the total number of domestic online game titles approved in 2023 to 977, a 108.76% increase from 2022.
On December 22, the National Press and Publication Administration sought public feedback on the "Online Game Management Measures" draft. Industry insiders suggest that these regulations imply that the new agent for Blizzard's Chinese service would likely have to reapply for a game license rather than acquiring one through purchase, potentially prolonging the process if NetEase is not continued as the agent.
