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Blizzard Makes A Major Change To Its Biggest Games In China

Blizzard and NetEase have worked together since 2008, but that deal could be ending.

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Blizzard Entertainment has announced that it is "suspending" most of its games in China in the coming months due to the company's deal with NetEase reaching an end.

The gaming giant said in a news release that its deal with NetEase ends on January 23, 2023, and at that time, titles like World of Warcraft, Hearthstone, Overwatch, Diablo III, Heroes of the Storm, Warcraft III: Reforged, and Diablo III will be taken offline. Diablo Immortal will stay up, as it's covered under a separate deal between Blizzard and NetEase.

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Blizzard and NetEase started their licensing deal for games in 2008, but the two companies failed to reach a deal to renew the agreement, Blizzard said in a statement. Blizzard said it couldn't come to terms with NetEase for a deal that would be "consistent with Blizzard's operating principles and commitments to players and employees."

New sales of the games mentioned above (except for Diablo Immortal) will be suspended in the coming days, and Blizzard will inform affected players about the process soon.

World of Warcraft: Dragonflight, Hearthstone: March of the Lich King, and Overwatch Season 2 will still go forward as planned later in 2022.

Blizzard president Mike Ybarra said the company is exploring "alternatives" to bring the affected games back to players in China in the future. No further details were shared, however.

Simon Zhu, the president of global investment and partnerships for NetEase, reacted to the news in a statement on LinkedIn. Zhu said there is more to the story.

"One day, when what has happened behind the scene[s] could be told, developers and gamers will have a whole new level understanding of how much damage a jerk can make," Zhu said.

Microsoft is in the process of attempting to acquire Activision Blizzard and all of its studios and franchises, including all of the ones mentioned here.

Western companies often work with a local partner when doing business in China, so it seems if Blizzard and NetEase cannot come to terms, Blizzard might seek a different associate. There is also the possibility that Blizzard is intentionally making this shutdown announcement loudly and publicly as a bargaining tactic to help encourage NetEase to make a deal. Time will tell.

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s1taz4a3l

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Probably needed to get rid of them since the MS buyout would hit a roadblock by having some panda paws sniffing around and leaking details. Not to mention i doubt that MS want them at the table or have to deal with them in the near future ( netease).

But seeing the monetization scheme on diablo immortal its no surprising since MS sells itself as "consumer friendly" and having a partner that gouge their customers for every dollar on their games, bad rep for MS if they put their lot with netease.

Still ending such a long partnership that way seems that there were(are) issues that we arent privy to them yet.

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randomoaf

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It sounds to me like Mike is trying to force NetEase to do something the government doesn't like. NetEase isn't going to just do it because Mike said so. Ok Blizzard, take your games and gtfo then.

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naryanrobinson

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China is falling apart recently.
I know it's basically a cliché at this point,
but I think the country will cease to exist within the next 10 years.

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deactivated-6793e8ba0e8bf

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@naryanrobinson: Under 10 years? What do you think will kick that off?

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deactivated-64efdf49333c4

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@lionheartssj1: Have you seen the news? I'll be surprised if millions of people don't march on their government buildings and tie up all of their politicians within the next WEEK.

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naryanrobinson

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Edited By naryanrobinson

@lionheartssj1:

Let me just preface by saying this is just my personal opinion, based on what I've seen during my 12 years in China, (I escaped back to my country back in July when the walls they built around our apartment building came down for a couple of days) synthesised with what's on China's plate in the short-term, their historical context, and with what I've seen on the news and heard from my friends who are still there.

It's very much already kicked off.

So first, Xi Jinping's historic third term. He changed the constitution of China to grant himself office for life, the first time China has seen that since Mao. It's kind of weird to think it, but within China, his elimination of office terms for himself was practically a secret. This landmark decision in China's history was uncharacteristically passed with absolutely no fanfare at all. Despite that, the typically politically-ignorant Chinese people are starting to notice, and question what's happening and why they weren't told. It feels like he's done something he knew he shouldn't have; it feels shady. There's a growing sentiment that Xi is seizing China for himself. “Bridge Man”, a protestor who stationed himself on a Beijing bridge the very day before Xi started his unprecedented third term, has become a hero among Chinese youth the likes of which hasn't been seen since Tank Man. Look up, “bridge man beijing" on YouTube to see the final stand that almost certainly cost him his life. He has inspired millions of young people to rebel, and be brave. That was just last week.

Second, there's a war with Taiwan bubbling. Xi promised in a speech in 2017 (?) that his term would see the “reunification of China”, which is a euphemism for the invasion and occupation of Taiwan. If that kicks off, Taiwan will fall easily, but it will also mean the end of China, and China knows it. Its biggest ally Russia, was utterly humiliated this year and their gaping military deficiencies exposed while doing almost the exact same thing with their own “Taiwan” back in February. With Iran also facing full-scale revolution, I bet Xi has never felt more isolated on the world stage. Recently the US has been “poking China in the Taiwan” as it were, with the intention of making Xi look weak, knowing he won't start a war he's fully aware he can't win. China's all about tough guy posturing, and the US knows it. The US's casual ignoring of China's apocalyptic threats regarding Taiwanese waterways and airspace is massively embarrassing Xi at home, knocking cracks in his towering façade.

Third, the general restrictions Chinese people have to live by, have been increasing by the week, especially since ~2018. People under 30 are hit especially hard. Half of them are faced with a life of street-sweeping and toilet-cleaning in exchange for a salary which represents a lifestyle the CCP themselves helped their parents and grandparents move out from under. The other half are facing a life of relentless study, then relentless monotony and ass-kissing, with ever-diminishing promises at the other end. Manufacturing is moving out of China due to the improved quality of life and thus higher expected salaries, thereby increasing the cost of living, but not wages. Basically all western TV shows have been blocked in China, and all depictions of western festivals erased from media. The concept of “western education” is also under explicit attack, as are fan clubs of any pop star or group. The rights of women in marriage have been eroded, as have their rights regarding house ownership. Constant pro-CCP government propaganda is riling up 20% of the population while frightening the rest. Foreigners have left China en masse, and private education institutions have been outlawed. Famous actresses, singers, athletes, and billionaires are disappearing or dying suddenly or without warning, and leaving China is harder than ever. All in the last few years.

Fourth, China's real estate sector, which accounts for an absolutely staggering ~30% of China's GDP, is crumbling under the weight of corruption. Their biggest investment bank, Evergrande, missed a debt payment this time last year which kick-started a gigantic snowball of distrust that resulted in them declaring insolvency in September. In China having a house is absolutely everything; you can't even get married without one, so a lot of statistics from that sector would blow your mind. But what Evergrande was doing was taking money in exchange for promises of apartments that didn't exist yet, then using that money to buy more plots, and using those plots to sell more promises, etc. It was the world's biggest pyramid scheme, worth 12% of the second biggest economy on earth. In all, 800,000 Chinese families lost absolutely everything, and when they formed a giant protest outside a bank in Henan, the government marched in an army of thugs to attack them. The government even tried to stop people travelling there, by turning red the COVID health code of everyone who had their savings stolen, thereby banning them from public travel, but it wasn't enough. The brutal videos spread a fair distance in China before being removed. Having the COVID tracking system abused like that for the CCPs own political/financial interests particularly angered people given how reluctantly people have come to accept it. Faith in China's real estate market is all but dead, and unlike the 2008 crisis in the US, the homes don't even exist, making it orders of magnitude worse.

Leading me to the final and biggest reason: The zero-COVID policy. This was Xi Jinping's golden chance to show the people of China that the Chinese way was better. To show them that if they put themselves to it, they could outclass, nay, utterly embarrass the west in their ability to coordinate and respond to crises. Simultaneously showcasing Xi's decisiveness and general leadership prowess, right as he was transitioning into his unprecedented third term. Also making a case for what can be accomplished if you're only willing to pass your freedom and autonomy into the CCP's capable hands. Back in 2020, there may have been a case for that. Now however, it's causing nothing less than full-blown rebellion across the country. People have gradually slid from warily excited at the novelty, to downright sick and angry at the totally unpredictable and seemingly blasé attitude with which their extremely fundamental freedoms are being tossed around. Shanghai was an absolute living nightmare. I could write a thousand words on that alone, but since then riots have broken out across dozens of Chinese cities, notably Guangzhou this week, in which thousands of factory workers took to the streets smashing buildings and flipping police cars, sick of being forced to pay rent and tax without being allowed to work. I have literally never seen a reaction by Han Chinese citizens this violent, not even during 1989's Tiananmen Square incident, and again it's all on YouTube. Many Chinese people are well aware that the west is back to business-as-usual and has been for over a year at this point, but are left to look on in envy with no end in sight. However Xi is in too deep at this point, and his ego is too big to admit his catastrophic mistake right at the beginning of his third term, so 1.4 billion people will continue to suffer. This has also had a monumentally negative effect on the Chinese economy. The CCP is trying their best to swallow the expense of their blunder themselves and not pass it on to the people, but as that starts to become untenable, people are getting angry. The CCP has replaced the two-child policy with a three-child one, but it's not moving the needle. Couples are having one kid, as that's all they can afford, putting China's future in even greater jeopardy as it struggles with the aftermath of its one-child policy, and the resulting explosion of economically-useless pensioners. There's also sweeping blackouts as the Chinese grid struggles to keep up with the entire workforce being at home all day with their air conditioners on. When you're locked in your home for a month with sporadic lighting you have lots of time to wonder if your government really knows what it's doing.

The Chinese people have been part of a brainwashing programme for a long time, and they've been led to believe the CCP are basically their wise and flawless guardian angels. All it takes is for the spell to be broken once, in a small way, for people's eyes to be opened, and to start thinking critically, and that's the beginning of the end for the CCP. That's already happened, and now, I believe, there's nothing left to do but watch the cards fall.

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deactivated-6793e8ba0e8bf

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@naryanrobinson: Thank you for this. The real estate ponzi scheme was probably what I was most aware of, and I speculated the CCP was stretching themselves thin with the global outreach. As for the unrest, I was afraid the party would crush dissent so it wouldn't become an untenable situation, though it sounds like from what you're saying the overwhelming majority of citizens would be too much to handle at this rate.

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deactivated-64efdf49333c4

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@lionheartssj1: I highly suggest you reference various channels on YouTube that cover all of this stuff if you're interested. More info, corroborated sources, nice summarizing, etc.

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deactivated-6793e8ba0e8bf

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@Barighm: Well, the real estate stuff isn't too hard to find. Using MSN, some of the auto fills if you type in 'china real estate' is 'problems', 'crisis', 'collapse', 'bubble', 'crash', etc. I don't have Youtube channels, if you have some, please feel free.

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OrionMD

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@naryanrobinson: that was the most interesting thing i have ever read on this website. Thank you for that.

My only concern is that the CCP is very, very good at squashing any and all dissent (as are all totalitarian regimes). Many thought the protests in 1989 would lead somewhere, but other than some pro-capitalist reforms, it has remained a country ruled with an iron fist.

It would be quite ironic though if the virus they created ended up being their downfall. The CCP leaders are corrupt, hypocritical bullies. I’d love for the people to oust them and send them all out into the Yellow Sea on a nice cruise ship and then sink it.

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The Party does not like money leaving. It's freshly-announced softening position is under the subtext of "we need to be producing and hosting all games here so revenue only goes in one direction."

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