The American company Activision Blizzard has encountered a shutdown of access to the Chinese market for its flagship online titles World of Warcraft, Overwatch 2, and Diablo III after failing to reach new terms with NetEase. The development marks a significant turning point in a long-running partnership that once linked the global publisher with one of China’s most influential internet firms. The situation is described in detail by the New York Times in its reporting. (New York Times)
Analysts note that a sharp rise in regulatory penalties for cross-border transactions prompted NetEase to demand more disclosures from Activision Blizzard, including annual revenue figures, as part of the regulatory review by Chinese authorities. The request aimed to satisfy tighter oversight of foreign contracts operating within China’s evolving market rules. In response, Activision Blizzard reportedly declined to provide the additional data, a stance that pushed NetEase to seek renegotiation of the deal. (New York Times)
Sources familiar with the talks indicate that the negotiations grew tense as both sides weighed leverage and strategic goals. The posture of Activision Blizzard’s leadership, including concerns about giving NetEase more room to maneuver under an updated agreement, featured prominently in private briefings and translator-mediated discussions. (New York Times)
During the conversations, some attendees described moments where NetEase executives appeared to press for broader influence, prompting warnings about potential shifts in control of the collaboration. These exchanges were filtered through interpreters, and descriptions of the interactions varied among sources, underscoring the challenges inherent in cross-cultural, high-stakes negotiations. A NetEase representative later stated that senior leaders had not threatened Activision Blizzard. (New York Times)
In terms of concessions, Activision Blizzard initially floated a model in which NetEase would receive a upfront license fee of about 500 million dollars instead of a more traditional, ongoing payment structure. NetEase reportedly rejected that approach, preferring terms aligned with continued, performance-based collaboration. A proposal to extend the partnership for six months was also rejected by NetEase’s team as insufficient. (New York Times)
The breakdown in talks culminated in a formal suspension of cooperation. By the night of January 23–24, 2023, the Chinese servers powering World of Warcraft were shut down, cutting access for millions of players and halting a game that has long ranked among the most popular online experiences globally. The impact extended beyond individual accounts, affecting community events, guild progression, and the broader ecosystem built around Activision Blizzard’s online titles in China. (New York Times)