Several games from Blizzard will be suspended from China because the developer failed to reach an agreement with its licensing and publishing partner, NetEase, it said in a press release.
Among the games that would be pulled out are Overwatch 2, Hearthstone, World of Warcraft, Starcraft, Heroes of the Storm, Diablo III and Warcraft III: Reforged. They won't be available in China after January 23, 2023.
Meanwhile, according to Engadget, the licensing dispute won't affect Diablo Immortal as it arrived earlier this year and it's covered by a separate agreement.
Blizzard, NetEase Failed to Reach an Agreement
According to a press release, Blizzard and NetEase have not reach a deal to renew the agreements that is line with the developer's operating principles and commitments to players as well as to employees.
The previous agreements of the two parties are set to expire in January 2023. This means that the previously mentioned games will be suspended in China by then.
According to Blizzard, they will be providing details on how the situation will work to the Chinese players soon. However, the developer did not offer a specific timeline, as per The Verge.
Meanwhile, the developer also said that its upcoming releases, including World of Warcraft: Dragonflight, Hearthstone: March of the Lich King, and season 2 of Overwatch 2 "will proceed later this year."
In a statement, William Ding, CEO of NetEase, said they have put a deal of effort and tried their best to make the negotiation with Activision Blizzard work.
He said the company wanted to continue its collaboration with Blizzard and serve many dedicated players in China. However, they could not reach an agreement as there are material difference on terms.
According to PC Mag, Mike Ybarra, president of Blizzard, said the company is seeking an alternative partnership.
He further added that Blizzard is immensely grateful for the passion the Chinese community has shown throughout the almost 20 that the developer's games are made available in China through NetEase and other partners.
Read Also: Diablo Immortal's China Release Reportedly Banned After Blizzard's Controversial Weibo Post
Licensing Dispute is Likely to be a Bigger Blow for Blizzard
The non-renewal of license seems to be bigger blow for Blizzard than it is for NetEase. According to NetEase, the revenue from Blizzard's games were "low single digits as a percentage" of the company's total net revenues and income.
Meanwhile, Blizzard will be needing to find another Chinese game publisher in order to get its games back on the market.
Blizzard is best known for iconic video game universes such as Warcraft, Overwatch, Diablo, and StarCraft. The game developer is a division of Activision Blizzard.
Over the last 30 years, Blizzard has made some of the gaming industry's most critically acclaimed and genre-defining games.
Meanwhile, NetEase is the second-largest gaming company in China. The company has been publishing games for Blizzard since 2008.
As part of the partnership, NetEase ensures that Blizzard's games meet China's strict content policies. In addition, NetEase is also a franchisee in Blizzard's Overwatch League. The company owns the Shanghai Dragons team.
According to the Verge, a World of Warcraft mobile game was canceled in August because the two companies couldn't agree on the terms of a deal.
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