Oh, WoW: Chinese gamers to be cut off from Blizzard games next week
(2023/01/18)
- Reference: 1674018914
- News link: https://www.theregister.co.uk/2023/01/18/blizzard_games_offline_china_netease/
- Source link:
Gaming giant Blizzard is about to stop operating some of its games in China, leaving players of multiplayer affairs like World of Warcraft fearing for the future of characters in which they have invested many hours of their lives, often in the company of friends they don't "see" in other "places".
This story starts in late 2022, when Blizzard [1]warned that its licensing agreement with an outfit called NetEase – which operates its games in China – was due to expire on January 23, 2023. At the time, Blizzard stated it had "not reached a deal to renew the agreements" with NetEase, but noted they'd done business since 2008.
Yesterday, Blizzard's Chinese operation [2]posted a statement telling players that it had been unable to renegotiate its deal with NetEase and was looking for alternate partners. It explained that the Chinese company had not even entertained an extension to current arrangements.
[3]
Blizzard's statement included news that it had created a function that allows gamers to download files that record their progress. Hopefully, they can one day resume playing when (or if) another operator of the popular online games can be found.
[4]
[5]
The gaming biz did not indicate who might take up the role of operating its games in China, or when it will happen. If Microsoft can pull off the acquisition of Activision, Blizzard's parent company, the software leviathan is a strong candidate for that role. But the prospects of the deal happening in a hurry are not good, thanks to [6]lawsuits and [7]regulatory complications .
[8]Microsoft-FTC dispute over Activision deal hits court
[9]China declares victory over teenage video game addiction
[10]Microsoft launches full-court press to save $69B Activision deal
[11]Minecraft's 'first luxury goods collection' features real-world $3,000 Burberry coat
NetEase responded to Blizzard with a … erm … blizzard of insults in its own social media post. As [12]reproduced in Chinese media the statement accused Blizzard of negotiating in bad faith, unilaterally implementing the save progress feature in ways that mean NetEase cannot guarantee its security or functionality, and acting against gamers' interests.
NetEase's post also pointed out that it was not comfortable negotiating with Blizzard while the US-based gaming giant talked to other prospective partners. The tirade includes terms that could constitute a crude sexual insult related to engaging multiple partners at once. The company even used [13]LinkedIn to criticize Blizzard's actions to an international audience.
The Chinese concern [14]flagged [PDF] the end of its partnership with Blizzard in November 2022, when it told shareholders the games it licensed delivered "low single digits as a percentage of NetEase's total net revenues and net income in 2021 and in the first nine months of 2022."
[15]
It advised investors that ending the license would have "no material impact on NetEase's financial results."
China is thought to be the largest source of World of Warcraft players, with over three million signed up. If losing those won't cause NetEase any material financial pain, perhaps Blizzard had the far more favorable end of the licensing deal and the Chinese partner is better off not doing whatever it takes to keep all those gamers online.
The deal between Blizzard and NetEase covers World of Warcraft, Hearthstone, Warcraft III: Reforged, Overwatch, the StarCraft series, Diablo III, and Heroes of the Storm. The two have a separate deal covering Diablo Immortal, which NetEase will continue to offer in the Middle Kingdom.
[16]
There's no sign that Beijing, which frowns upon gaming, has let NetEase know it would be happiest if it stopped dealing with Blizzard. ®
Get our [17]Tech Resources
[1] https://investor.activision.com/news-releases/news-release-details/blizzard-entertainment-and-netease-suspending-game-services
[2] https://weibo.com/5883095259/MoHDzleoJ
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2022/12/21/gamers_microsoft_activision_lawsuit/
[7] https://www.theregister.com/2022/12/23/microsoft_activision_deal_argument/
[8] https://www.theregister.com/2023/01/03/microsoft_ftc_activision_court/
[9] https://www.theregister.com/2022/11/24/china_gaming_ban_worked/
[10] https://www.theregister.com/2022/12/08/microsoft_activision_ftc_cwa/
[11] https://www.theregister.com/2022/11/02/burberry_minecraft_collaboration/
[12] https://new.qq.com/rain/a/20230117A093IS00
[13] https://www.linkedin.com/posts/activity-7021032434980835328-6nIv/
[14] https://portalvhds1fxb0jchzgjph.blob.core.windows.net/press-releases-attachments/1471878/HKEX-EPS_20221117_10509998_0.PDF
[15] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[17] https://whitepapers.theregister.com/
This story starts in late 2022, when Blizzard [1]warned that its licensing agreement with an outfit called NetEase – which operates its games in China – was due to expire on January 23, 2023. At the time, Blizzard stated it had "not reached a deal to renew the agreements" with NetEase, but noted they'd done business since 2008.
Yesterday, Blizzard's Chinese operation [2]posted a statement telling players that it had been unable to renegotiate its deal with NetEase and was looking for alternate partners. It explained that the Chinese company had not even entertained an extension to current arrangements.
[3]
Blizzard's statement included news that it had created a function that allows gamers to download files that record their progress. Hopefully, they can one day resume playing when (or if) another operator of the popular online games can be found.
[4]
[5]
The gaming biz did not indicate who might take up the role of operating its games in China, or when it will happen. If Microsoft can pull off the acquisition of Activision, Blizzard's parent company, the software leviathan is a strong candidate for that role. But the prospects of the deal happening in a hurry are not good, thanks to [6]lawsuits and [7]regulatory complications .
[8]Microsoft-FTC dispute over Activision deal hits court
[9]China declares victory over teenage video game addiction
[10]Microsoft launches full-court press to save $69B Activision deal
[11]Minecraft's 'first luxury goods collection' features real-world $3,000 Burberry coat
NetEase responded to Blizzard with a … erm … blizzard of insults in its own social media post. As [12]reproduced in Chinese media the statement accused Blizzard of negotiating in bad faith, unilaterally implementing the save progress feature in ways that mean NetEase cannot guarantee its security or functionality, and acting against gamers' interests.
NetEase's post also pointed out that it was not comfortable negotiating with Blizzard while the US-based gaming giant talked to other prospective partners. The tirade includes terms that could constitute a crude sexual insult related to engaging multiple partners at once. The company even used [13]LinkedIn to criticize Blizzard's actions to an international audience.
The Chinese concern [14]flagged [PDF] the end of its partnership with Blizzard in November 2022, when it told shareholders the games it licensed delivered "low single digits as a percentage of NetEase's total net revenues and net income in 2021 and in the first nine months of 2022."
[15]
It advised investors that ending the license would have "no material impact on NetEase's financial results."
China is thought to be the largest source of World of Warcraft players, with over three million signed up. If losing those won't cause NetEase any material financial pain, perhaps Blizzard had the far more favorable end of the licensing deal and the Chinese partner is better off not doing whatever it takes to keep all those gamers online.
The deal between Blizzard and NetEase covers World of Warcraft, Hearthstone, Warcraft III: Reforged, Overwatch, the StarCraft series, Diablo III, and Heroes of the Storm. The two have a separate deal covering Diablo Immortal, which NetEase will continue to offer in the Middle Kingdom.
[16]
There's no sign that Beijing, which frowns upon gaming, has let NetEase know it would be happiest if it stopped dealing with Blizzard. ®
Get our [17]Tech Resources
[1] https://investor.activision.com/news-releases/news-release-details/blizzard-entertainment-and-netease-suspending-game-services
[2] https://weibo.com/5883095259/MoHDzleoJ
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2022/12/21/gamers_microsoft_activision_lawsuit/
[7] https://www.theregister.com/2022/12/23/microsoft_activision_deal_argument/
[8] https://www.theregister.com/2023/01/03/microsoft_ftc_activision_court/
[9] https://www.theregister.com/2022/11/24/china_gaming_ban_worked/
[10] https://www.theregister.com/2022/12/08/microsoft_activision_ftc_cwa/
[11] https://www.theregister.com/2022/11/02/burberry_minecraft_collaboration/
[12] https://new.qq.com/rain/a/20230117A093IS00
[13] https://www.linkedin.com/posts/activity-7021032434980835328-6nIv/
[14] https://portalvhds1fxb0jchzgjph.blob.core.windows.net/press-releases-attachments/1471878/HKEX-EPS_20221117_10509998_0.PDF
[15] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y8fRWD2E3j9l7rE33mwN6AAAAEU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[17] https://whitepapers.theregister.com/
Re: Cause and effect...
Pascal Monett
It's called business.
You say you don't want to work with me any more ? Excuse me while I search for people who do.
And the childish sexual insults simply demonstrate that NetEase's management need to grow up. Petulant children should not be in charge of major communications companies.
Eh, Musk ?
imanidiot
"accused Blizzard of negotiating in bad faith, unilaterally implementing the save progress feature in ways that mean NetEase cannot guarantee its security or functionality, and acting against gamers' interests."
IE implemented in a way that doesn't allow NetEase to hold player data for ransom to "negotiate" a new contract? Seems like some execs still need to learn how these sorts of negotiations work and that companies don't just take whatever shit deal you try to offer them just to continue an existing relationship.
As if by magic...
RyokuMas
Now I'll admit that I've been clean of WoW for over a decade now so my knowledge is pretty dated, but back in the height of my addiction time playing, Chinese gold farmers were a blight on the game, making some resource gathering next to impossible. So if that is still the case, maybe this will be a nuclear option...?
Cause and effect...
"NetEase's post also pointed out that it was not comfortable negotiating with Blizzard while the US-based gaming giant talked to other prospective partners."
Could that be because
"The Chinese concern flagged [PDF] the end of its partnership with Blizzard in November 2022, when it told shareholders the games it licensed delivered 'low single digits as a percentage of NetEase's total net revenues and net income in 2021 and in the first nine months of 2022.' "
If I tell a business partner and the world in general I might not renew a contract I should not complain when they start looking for alternatives. They are pretty much obliged to, being accountable to their shareholders (if they are publicly traded). By all means, try and secure a better deal when renewing a contract - or switching distributors or suppliers, that's all part of the game.