The break in Activision Blizzard’s partnership with NetEase in China which happened in January this year cost many Chinese players the ability to play Blizzard games, and today the New York Times may have some insight as to how the relationship between the two gaming giants might have gone wrong.
While tensions had been building for years before the final negotiations last year, ranging from NetEase’s investment in Western studios Activision wasn’t happy with (with Bungie being one of them), in the end the fate of Chinese players’ Blizzard accounts may have come down to a misunderstanding. The fateful Zoom call happened last October, between Activision Blizzard CEO Bobby Kotick and NetEase chief executive William Ding, and involved translators at certain points in the conversation.
As reported by the New York Times, based on accounts from 4 people familiar with the talks and a document they reviewed, the call was part of the standard re-negotiation of licensing rights between the two companies. The discussion arrived at the topic of the merger between Activision Blizzard and Microsoft, and the scrutiny it had come under all around the world, but particularly in China. According to two people familiar with the call and the document reviewed by the New York Times, Activision executives recalled that at a certain point Mr. Ding said NetEase “could sway the [Chinese] government either to block or support that deal depending on the outcome of the licensing discussion.” Reportedly the Activision executives felt that the statement was meant as a threat, but NetEase executives claim they did not intend to make any threat and were just trying to be conciliatory towards Activision, meaning to simply point out that Microsoft would have the same issues Activision now had with the Chinese regulators, and that the new deal NetEase was proposing would help in both situations. A NetEase spokesman flatly denied that there were any threats as well, saying that Activision was continuing to “harass and taunt companies and regulators worldwide.”
NetEase employees tearing down the Gorehowl statue in China.
Source: chaijingNDS on TikTok, via Dexerto.
After the call Activision reportedly made a completely different licensing offer, for approximately $500 million upfront, as opposed to the previous smaller payments throughout the course of the deal, which NetEase rejected. There was also a quite literal last ditch effort on the part of Activision later on, asking to extend the existing deal for 6 months as it looked for a new Chinese partner, but that was also rejected by NetEase. Finally, on January 23rd 2023, most of Activision Blizzard’s games were shut down in China, with players not being able to access their characters, which some had spent over a decade and a half building. And while their data has been saved, it is still unclear when or even if they will be able to use those accounts and characters again.
The New York Times article has many more details about the two companies dealings, so make sure to check it out over here, as it is very eye-opening.
