The American video game giant Blizzard Entertainment has announced that it will suspend most of its activities in China due to the failure to renew an agreement with its long-standing local partner in the world’s largest market.
Blizzard has had a presence in China since 2008 through a collaboration with Chinese internet giant NetEase. The latter had no immediate comment, but his share lost more than 10% on the Hong Kong Stock Exchange.
The California-based American group is at the origin of highly successful game series such as “World of Warcraft”, “Overwatch” and “Diablo”.
The current contracts between Blizzard and NetEase run through January 2023.
But Blizzard said the two groups “had not reached an agreement” for the continuation of their partnership in China.
In the sights of the authorities
“We will suspend sales in the coming days and Chinese players will receive detailed information soon,” Blizzard said in a statement on Wednesday.
However, the group confirmed the releases this year of the games “World of Warcraft: Dragonflight”, “Hearthstone: March of the Lich King” and the second installment of “Overwatch”.
The Chinese group is scheduled to reveal its quarterly results later today.
Video games, which represent a major financial windfall in China, have been in the crosshairs of authorities since last year.
Thus, restrictions have been imposed on those under 18 years of age, with a limit of three hours of practice per week for online games, in order to fight addiction among the youngest.
In July 2021, Beijing froze all release authorizations for new games for nine months, weighing heavily on the industry’s profitability.
However, licensing resumed in April, and NetEase got its first go in September.
Source: BFM TV
