blizzard A Misunderstanding May Have Been the Cause of Activision Blizzard Games Not Being Available in China

[Starym 3,780]

 

The break in Activision Blizzard's partnership with NetEase in China which happened in January this year cost many Chinese players the ability to play Blizzard games, and today the New York Times may have some insight as to how the relationship between the two gaming giants might have gone wrong.

While tensions had been building for years before the final negotiations last year, ranging from NetEase's investment in Western studios Activision wasn't happy with (former Activision-owned studio Bungie being one), in the end the fate of Chinese players' Blizzard accounts may have come down to a misunderstanding. The Zoom call in question happened last October, between Activision Blizzard CEO Bobby Kotick and NetEase chief executive William Ding, and involved translators at certain points in the conversation.

As reported by the New York Times, based on accounts from 4 people familiar with the talks and a document they reviewed, the call was part of the standard re-negotiation of licensing rights between the two companies. The discussion arrived at the topic of the merger between Activision Blizzard and Microsoft and the scrutiny it had come under all around the world, but particularly in China. According to two people familiar with the call and the document reviewed by the New York Times,  Activision executives recalled that at a certain point Mr. Ding said NetEase "could sway the [Chinese] government either to block or support that deal depending on the outcome of the licensing discussion." Reportedly the Activision executives felt that the statement was meant as a threat, but NetEase executives claim they did not intend to make any threat. They stated that they were just trying to be conciliatory towards Activision, meaning to simply point out that Microsoft would have the same issues Activision now had with the Chinese regulators, and that the new deal NetEase was proposing would help in both situations. A NetEase spokesman flatly denied that there were any threats as well, saying that Activision was continuing to "harass and taunt companies and regulators worldwide."

NetEase employees tearing down the Gorehowl statue in China.
Source: chaijingNDS on TikTok, via Dexerto.

After the call Activision reportedly made a completely different licensing offer, for approximately $500 million upfront, as opposed to the previous smaller payments throughout the course of the deal, which NetEase rejected. There was also a quite literal last ditch effort on the part of Activision later on, asking to extend the existing deal for 6 months as it looked for a new Chinese partner, but that was also rejected by NetEase. Finally, on January 23rd 2023, most of Activision Blizzard's games were shut down in China, with players not being able to access their characters, which some had spent over a decade and a half building. And while their data has been saved, it is still unclear when or even if they will be able to use those accounts and characters again.
 

The New York Times article has many more details about the two companies' dealings, so make sure to check it out over here, as it is very eye-opening.

[Klaas 2]

I would also have taken it as "if you dont give us a good deal we will make our govmt block your microsoft deal".

Goodbye "partner".

[ArthasStormrage87 52]

The Chinese government wouldn’t want anything more than to see a U.S. based company destroyed. I believe 100% NetEase said that, and as big as they are guarantee the Chinese Government is involved heavily in their dealings…that’s how communist countries work!

[Arcling 887]

2 hours ago, ArthasStormrage87 said:

The Chinese government wouldn’t want anything more than to see a U.S. based company destroyed. I believe 100% NetEase said that, and as big as they are guarantee the Chinese Government is involved heavily in their dealings…that’s how communist countries work!

This is just state capitalism. Also, this is how capitalist countries work as well. US intervenes on behalf of their major companies all the time (so they can pay lower taxes in other countries for example). You don't need freedom to have capitalism. Besides, in this case it was Netease who wanted to sway Chinese government in their favor.

To be fair, both sides come off as bad here. Activision didn't want their partner working with their former devs and studios, so they tried to force them out of it.

[Prophet001 547]

4 hours ago, ArthasStormrage87 said:

The Chinese government wouldn’t want anything more than to see a U.S. based company destroyed. I believe 100% NetEase said that, and as big as they are guarantee the Chinese Government is involved heavily in their dealings…that’s how communist countries work!

100%

When you deal with Chinese companies you deal with the Chinese government by proxy and sometimes there's not even a proxy.

There is absolutely no misunderstanding here lol.

Edited March 30, 2023 by Prophet001

[SidonisAntares 288]

Here come all the edgelords with their hot takes on capitalism vs communism, as if the two were independent and the Freedumb Eagle does no such thing for its own companies.

Go look up how many questionable rulings there have been regarding exporting software and 15 CFR § 742 that were supposedly done in the name of national security.

[Arcling 887]

59 minutes ago, SidonisAntares said:

Here come all the edgelords with their hot takes on capitalism vs communism, as if the two were independent and the Freedumb Eagle does no such thing for its own companies.

Exactly as I mentioned in my previous post. I live in one of these countries where American companies don't pay much tax due to US government interference. They also rely on public infrastructure and funding to an extent. So much for "muh free market".

Also, it's always funny to me when people think China isn't capitalist. But it has Communist Party of China! It's in the name so it can't be capitalist! By this "logic" Democratic People's Republic of Korea must be a democracy.

[KYA 2]

6 hours ago, Arcling said:

Also, it's always funny to me when people think China isn't capitalist. But it has Communist Party of China! It's in the name so it can't be capitalist! By this "logic" Democratic People's Republic of Korea must be a democracy.

Lived in chn since 30 yrs ago. CHN isn’t capitalist, it’s autocratic.

I’m sorry you are wrong.

Your argument would be partially true if their leader is still Deng Xiao Ping, since he was quite open minded and never cling to CCP codex which demand their ppl to bring  “utterly destruction” to “western capitalism scums”.

But for now, not a chance. That country, it’s leadership, and even a large part of its population, are puffed up with the mindset that they are superior to any other country/civilization over the world.

You should really check those vulgar “memes” or bad jokes created by CHN netizen during Blizzard-NetEase drama. They just barge into your house then spit in everyone’s face if ppl doesn’t agree with their “by-refusing-our-proposal-blizzard-is-trying-to-destroy-our-great-country” conspiracy.

 

[Prophet001 547]

18 hours ago, SidonisAntares said:

Here come all the edgelords with their hot takes on capitalism vs communism, as if the two were independent and the Freedumb Eagle does no such thing for its own companies.

Go look up how many questionable rulings there have been regarding exporting software and 15 CFR § 742 that were supposedly done in the name of national security.

Zhou Changjian, Jack Ma, Bao Fan, Meng Hongwei, and countless others would like to open your eyes to your naivety and enlighten you on the differences between the two. If you can find them that is.

Edited March 31, 2023 by Prophet001

[Arcling 887]

14 hours ago, KYA said:

CHN isn’t capitalist, it’s autocratic.

It's both, those things aren't mutually exclusive. I think you assume that capitalism equals democracy, and it can't exist without it. As I wrote before, capitalism doesn't equal freedom. Autocratic countries have this too and the way their economy operates is basically state capitalism. The way Chinese economy operates, this is how state capitalism is often defined in political theory.

14 hours ago, KYA said:

Your argument would be partially true if their leader is still Deng Xiao Ping, since he was quite open minded and never cling to CCP codex which demand their ppl to bring  “utterly destruction” to “western capitalism scums”.

Again, this is just propaganda. Not how system actually works. Just like they are claiming that they are fighting for freedom from western oppression, doesn't mean they are some protectors of democracy.

[MeOnIV 23]

I can see how it may have played out as a NetEase flex gone wrong and taken the wrong way by Bobby Kotick Yacht Club.

NetEase executive bragged about their ability to persuade the Chinese regulatory body, and ensuring ActBlizz that even post MS merger the way would remain open if the deal is made.

ActBlizz possibly intepreted it as if they don’t sign then NetEase will actively move to disrupt their operation - Hence the perceived threat.

NetEase may as well start doing that now the cat is out of the bag. 

I’m sure the ability to influence the Chinese government regulatory body would be a significant leverage in China. I’d brag about it too lol.

Also smh at the derailing into omg Communists again… Cringe. Propaganda going both ways. Power and influence is used in every market of every governing model, be it capitalist free market or a state capitalism socialist market.

[MeOnIV 23]

Sorry double posting with added context:

For the past 14 years NE and AB were in a Joint Venture mandatory by law, just like any sizable foreign business operating in China.

Allegedly the “threat” came from NetEase proposing that AB switch model and fully licence their games instead to NetEase, so NetEase would have a easier time dealing with Chinese regulators as a influencial, domestic Chinese company because otherwise post merger Microsoft would again be under the mercy of the Chinese regulators, as a foreign business in a JV partnership.

Apparently Blizz was like “fine pay us big money upfront.” NetEase was like “lol, no.”

 

[SidonisAntares 288]

14 hours ago, Prophet001 said:

Zhou Changjian, Jack Ma, Bao Fan, Meng Hongwei, and countless others would like to open your eyes to your naivety and enlighten you on the differences between the two. If you can find them that is.

We just have better PR. Many people don't even know the names those who disappeared through Homan Square in Chicago unless related to them, or as lawyers for said relatives.

[rnegoro 0]

elon been there done that.,

[Avataris 10]

I quitted WoW 4-5 years ago but I still love the game. I still remember the countless hours of farming, spamming M+, friends, quests, gangs etc. I didn't know the "ban" case and oh boy I feel so sorry for every single chinese player. At least for the honest ones playing for the sake of the game not the hackers, AH farmer. If at my most addicted days when I literally was living so I can get back home and start playing I was "banned" form the game I love...my soul was gonna be empty. I know how nervous I was getting when my internet connection was down. Boy...the melt down was gonna be real. I really hope they will resolve the issue as soon as possible because WoW may be dying from what was years ago but there are still players who love the game and truly enjoys it. I truly hope because everybody knows that at some point WoW was life.

Edited April 14, 2023 by Avataris