NetEase files $43 million lawsuit against Blizzard Entertainment: report - PingW...

NetEase files $43 million lawsuit against Blizzard Entertainment: report

NetEase files $43 million lawsuit against Blizzard Entertainment: report

11 hours ago

Disputes between primary Chinese gaming firm NetEase and notable game developer and publisher Blizzard Entertainment continue as NetEase has recently raised a lawsuit against Blizzard, according to Chinese media outlet 36Kr (in Chinese).

In the report, NetEase's Shanghai subsidiary accused Blizzard of violating a series of licensing agreements, demanding a return of the 300 million RMB debt ($43.27 million) .

According to 36Kr, it includes refunds for players and unsold items in the discontinued titles in the Chinese mainland since Jan. 23 this year, including World of Warcraft, Hearthstone, Warcraft III: Reforged, Overwatch, the StarCraft series, Diablo III, and Heroes of the Storm. NetEase further sought to withdraw deposits from undeveloped collaboration titles.

Blizzard Entertainment told the Chinese internet outlet Jiemian that they had not received any relevant notice about the lawsuit and did not violate any agreements.

NetEase declined to comment on PingWest's inquiry on this matter while Blizzard Entertainment has yet to respond to PingWest as of press time.

The 14-year gaming "marriage" between the two companies began to unravel last year, when Blizzard abruptly declared that it would no longer collaborate with NetEast in some notable titles in December 2022. Both claimed the license suspension had a minor impact on their revenues.

However, according to Blizzard's press release, the partnership with the co-developed title Diablo Immortal will continue. And Blizzard was actively seeking new partners in China to relive these titles for Chinese players, according to Blizzard China's social post  (in Chinese) on Weibo on Jan. 17. 

But Blizzard could counter an essential issue of re-licensing by having other partners run these games as game content standards are becoming more stringent, and it is difficult to predict when a submission will be approved. Any game title without a vaild license would be prohibited from operating on the Chinese mainland under the country's restrictions.

As of now, Chinese gamers had offered options of sealing their game profiles locally.

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