After a tumultuous year, Blizzard has made a significant comeback in the Chinese gaming market. Millions of World of Warcraft players in China experienced a rollercoaster of emotions as rumors of Blizzard's return sparked excitement, only to be met with disappointment before the official confirmation reignited joy and relief on April 10.
Huang \"XiaoSe\" Xudong, a well-known Starcraft promoter, symbolized the economic importance of Blizzard's return by distributing candies shaped like the god of wealth at NetEase headquarters. This gesture highlighted the positive impact on the gaming community and the broader economy.
A Roadblock Removed
In early 2023, Blizzard games, including WoW, Hearthstone, Overwatch 2, and Diablo 3, were terminated in China following a breakdown in contract negotiations. The clash arose when Blizzard, under former CEO Bobby Kotick, sought a higher profit share, increased game prices, and a substantial upfront payment, which NetEase CEO Ding Lei found unreasonable.
The acquisition of Blizzard's parent company, Activision Blizzard, by Microsoft in October 2023 was a turning point. Microsoft's influence likely facilitated the renewed partnership between Blizzard and NetEase. Additionally, a separate deal to promote NetEase games on Xbox may have played a role in bringing Blizzard back to the Chinese market.
An Uncertain Future
Despite the positive signs, Blizzard's return may not be as impactful as hoped. NetEase's video game revenue surpassed 81 billion yuan ($11 billion) in 2023, with Blizzard contributing only about 2 billion yuan in 2022. Similarly, Activision Blizzard reported that just 3 percent of its 2021 revenue originated from China.
However, there is potential for growth through mobile ports of Blizzard titles. The Diablo Immortal mobile port, co-developed with NetEase, saw over 10 million downloads in its first week and generated more than $100 million in eight weeks, outpacing Blizzard's own mobile game, Warcraft Rumble.
Despite these developments, a survey by iFeng.com from December 2023 to January 2024 revealed that only 10 percent of 20,000 Chinese players were excited about Blizzard's return, while the majority remained indifferent or hostile. Nonetheless, over 2 million players accessed their accounts on the new Blizzard.cn website by April 10, indicating a substantial, albeit cautious, interest.
Reference(s):
Blizzard's return to China: A shot in the arm or a forgotten love?
cgtn.com
