Blizzard’s presence in China smells burnt. This risks losing a large market share to the publisher. Explanations.
Blizzard has had a presence in China since 2008 through a significant collaboration with Chinese internet giant NetEase. At the moment, the current contract runs until January 2023. However, Blizzard has indicated that the two groups have not reached an agreement. Blizzard explains as follows:
We will suspend sales in the coming days and Chinese players will receive detailed information soon.
Bad weather for Blizzard?
NetEase has confirmed that several Blizzard titles will not be renewed World of Warcraft, StarCraft, Etc. As a result, NetEase shares fell more than 9% as of Thursday’s close on the Hong Kong Stock Exchange. But it could also be Blizzard with a lot to lose in the story. According to the latest financial reports, Asia alone accounts for 16% of the group’s sales. And China in the lot must account for a good half, if not more, of that percentage. Escape from China also means drawing a line under tens of millions of potential users/buyers. A very significant deficit that should reduce the turnover of the American publisher if it continues like this.
So Blizzard will have to find a new partner to distribute its games, but who that will be remains to be seen. Maybe Tencent, which is already Activision’s distributor in China? Because yes, remember that only a company under Chinese law can operate online games in the country. Which pretty much limits the possibilities.
