(Bloomberg) — NetEase Inc . has hit back in an escalating public dispute with US gaming giant Blizzard, accusing its longtime partner of being “rude and inappropriate” when negotiating to keep World of Warcraft on PCs in China.
The Chinese company fired the latest salvo in a dispute between the two studios that has seen franchises such as Diablo, Warcraft and Overwatch withdraw from the world’s biggest gaming arena. NetEase responded to a post on Tuesday in which the Activision Blizzard Inc. said that NetEase has rejected its offer to extend their license agreement for another six months while they work out new terms.
NetEase compared the situation to a long-term spouse who is unfaithful or unable to make up his mind. “It’s like they were riding a donkey while looking for a horse, offering divorce while still dealing with the same partner,” NetEase said, using a common euphemism for sex, in a crudely worded Chinese statement on its WeChat page.
NetEase has rejected an offer to extend the game’s license, Blizzard says
Blizzard and NetEase broke off talks late last year on a new licensing agreement that would have extended their 14-year partnership to bring Blizzard titles to the Chinese market. The mutually beneficial relationship has helped NetEase become China’s second-largest game distributor behind Tencent Holdings Ltd. and offered Blizzard a path to a key Asian market.
Aside from financial terms, key points of contention in the dispute include ownership of intellectual property and control over the data of millions of players in China, Bloomberg News previously reported. In its latest statement, NetEase said it has never sought to control intellectual property rights in its relationship with Blizzard, whose game assets it uses only by mutual consent.
Blizzard games are set to be pulled from China on January 23 if no expansion or alternative distributor is found. The company has promised to let World of Warcraft players save their progress with a new service. NetEase has warned that it cannot guarantee the safety of this service, which may pose a security risk.
NetEase will still publish Diablo Immortal in China, a popular mobile RPG co-developed with Blizzard that is subject to a separate long-term deal.
Sentiment on Chinese social service Weibo has been largely critical of Blizzard, with users pointing to the company’s extension efforts as a means of bridging the gap while it negotiates a better deal with a rival. Blizzard said it is still in talks with several Chinese distributors, but it’s unclear if local leader Tencent is among them.
“Blizzard’s proposal, including its statement today, is crass, inappropriate and inconsistent with business logic,” NetEase said. “He never considered the interests of gamers and NetEase.”
©2023 Bloomberg LP
Add Comment