Blizzard is suspending service in China as the NetEase agreement expires

Blizzard Entertainment announced that it will be suspending game services in China from early next year. The licensing deals with Chinese game publisher NetEase expire on January 23, 2023, and according to Blizzard, it is not going to renew the agreement. The two companies last updated in 2019.

Blizzard says of its negotiations with NetEase: “The two parties have not reached a deal to extend the agreements consistent with Blizzard’s operating principles and commitments to players and employees.” It has not given any further details, however That reports Bloomberg ownership of player data and intellectual property was one of the sticking points. There has also been tension between Blizzard and the Chinese authorities since the last update.

As of January, Blizzard will discontinue services for World of Warcraft, Warcraft III, Hearthstone, Overwatch 2, Starcraft, Heroes of the Storm, and Diablo III. The two companies teamed up in 2008 to release certain games in China, including the aforementioned titles. It also participated in the development of Diablo Immortal, which will not be affected as it is under a separate agreement. Blizzard will stop sales in China in the coming days.

Blizzard president Mike Ybarra expressed Blizzard’s appreciation to the Chinese public, saying that the company is “looking for alternatives to bring our games back to players in the future.” According to a recent Newzoo reportthe Chinese market is no longer growing at the pace it used to, partly thanks to stricter rules for playing time and new releases.