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2025-01-15 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >
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Shulou(Shulou.com)11/24 Report--
CTOnews.com, November 17, local time, Blizzard Entertainment announced that most of Blizzard's game services on Chinese mainland will be suspended because the existing license agreement with NetEase expires on January 23, 2023, including World of Warcraft, hearthstone Legend, Watchman, StarCraft, Warcraft III: reset, Diablo III and Storm Hero.
NetEase responded that the company has been doing its best to negotiate with Blizzard, hoping to push forward the contract renewal. After long negotiations, NetEase is still unable to agree on some key terms of cooperation with Activision Blizzard. "We very much regret that Activision Blizzard announced the cessation of cooperation today, and we will have to accept this decision. NetEase will continue to perform his duties and serve our players until the last minute."
According to the Observer Network, it was learned from insiders close to NetEase that Blizzard's policy offered a "sky-high price" condition for contract renewal. According to this person, Blizzard's revenue and net profit have further increased by more than 50 per cent compared with the 2019-2022 contract period, and Blizzard game pricing will adopt a global synchronization strategy, compared with the previous national service pricing generally lower than the rest of the world by about 20 per cent.
In addition, Blizzard also asked NetEase to follow the "Diablo: immortal" model, research and development of Blizzard other IP mobile games global distribution, but NetEase only enjoy the Chinese market revenue share. At the same time, Blizzard also requires NetEase to pay a huge deposit or prepaid fee to guarantee the completion of Article 2, otherwise he will be "punished".
People familiar with the matter said frankly that if the contract renewal conditions are true, Blizzard is asking NetEase to "work for free."
According to thepaper.cn, at present, a number of game companies have become potential interested parties in negotiations with Blizzard, including Tencent, Perfect World, bilibili and so on. However, no company has publicly responded to the matter.
Affected by the relevant news, NetEase's share price plummeted this morning, down 10.46% as of press time, and is now trading at 101.9 Hong Kong dollars per share.
CTOnews.com learned that Activision Blizzard said when it announced its third-quarter 2022 results on November 8 that its agency agreement in China would expire in January 2023, and that the renewal of the agreement was under discussion, but that it might not be able to reach a mutually satisfactory result. The financial report also mentioned that the current agreement to renew the contract covers a number of games released by Blizzard in China (World of Warcraft, StarCraft II, hearthstone Legend, Watchman, etc.), which account for about 3% of Activision's combined net income in 2021.
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