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Activision Blizzard Looking for New Gaming Partner in China

Activision Blizzard is sounding out potential partners in China, after Netease turned down the opportunity to extend its long-time partnership with the US games developer


Activision Blizzard is looking for a new gaming partner in China.
Copies of the World of Warcraft video game published by Activision Blizzard, owned by Vivendi, are seen in a shop in Rome in this Reuters file photo.

 

US video game developer Activision Blizzard, the company behind hit franchise Warcraft, is looking for a new partner in China.

The company said on Tuesday said its Chinese publisher NetEase has knocked back a proposal to extend their long-time partnership.

In a statement on microblogging site Weibo, the US firm’s subsidiary Blizzard China said it contacted NetEase last week with a proposal to extend their partnership for six months, but the Hangzhou-based company declined.

Blizzard China said its game services will end on January 23.

NetEase did not immediately respond to a request for comment.

The development comes after Activision Blizzard in November said it would end its 14-year partnership with NetEase, the second-largest gaming company in China.

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Shockwaves

The announcement sent shockwaves across the industry as the partnership was widely seen one of the most lucrative in video games.

NetEase, in a November earnings briefing, said it had made the utmost effort to negotiate but found the proposed terms requested by the US company unacceptable.

NetEase then said it would have to discontinue Activision Blizzard’s game service in China, the world’s biggest gaming market, on January 23.

With the demise of their partnership, Activision Blizzard was left without a Chinese publisher and said in December it was in talks with potential partners.

NetEase rose to become a gaming giant partly by publishing Activision Blizzard’s games in China. The company has since accelerated its own game development capability, with in-house games now accounting for over 60% of revenue.

 

  • Reuters with additional editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.