NetEase and Microsoft partners to relaunch popular gaming titles in the Chinese market

Chinese gaming market: China's NetEase and US gaming giant Microsoft announced on Wednesday their plans to reintroduce popular titles such as "World of Warcraft" to the Chinese market. The move follows a fallout involving the developer and the termination of a nearly 15-year partnership.

The partnership aims to bring online games from Blizzard Entertainment, a subsidiary of Activision Blizzard acquired by Microsoft last year, back to China starting this summer. NetEase, which previously served as the publisher of Blizzard games in China from 2008 to 2023, will resume this role.

Blizzard Entertainment President Johanna Faries expressed excitement about re-establishing the partnership with NetEase, underlining their commitment to delivering exceptional gaming experiences to Chinese players.

In addition to reviving Blizzard games in China, NetEase and Microsoft have agreed to explore opportunities to bring NetEase titles to Microsoft's Xbox and other gaming platforms. This collaboration holds significance for NetEase's aspirations to expand its overseas presence, according to industry analysts.

The announcement led to a positive market response, with NetEase's share price rising approximately 2 per cent on Wednesday morning, following a 3 per cent gain the previous day.

The fallout between Blizzard and NetEase occurred in January 2023, resulting in several Blizzard games being taken offline in China due to disagreements over intellectual property control. However, tensions eased after Microsoft's acquisition of Activision Blizzard in October, followed by subsequent management changes.

The renewed publishing agreement covers Blizzard's flagship games, including "World of Warcraft" and "Hearthstone," along with other titles from the "Warcraft," "Overwatch," "Diablo," and "StarCraft" franchises.

Analysts estimate that NetEase's earnings could see a 2 per cent incremental increase as a result of the re-engagement with Blizzard. Blizzard games had garnered popularity in China, with "World of Warcraft" alone boosting approximately five million Chinese players in 2009.

The termination of the partnership sparked outcry among Chinese gamers, leading to over a million refund requests for unspent in-game credit, according to NetEase customer service.

(With Reuters inputs)