NetEase is out for blood! It has recently been reported that the Chinese tech company is suing Blizzard Entertainment for a hefty sum of $43.5 million after the huge fiasco last year about the two companies not reaching a renewed licensing agreement. As you may recall, Blizzard went offline in China back in August due to strict Chinese government regulations. Foreign media companies must go through a state-approved intermediary in order to conduct business in China, and unfortunately, the two parties could not come to an agreement, leading to the shutdown of Blizzard operations and services in China.
According to Sina Technology, NetEase has filed a lawsuit against Blizzard for violating a series of licensing agreements and is demanding refunds for discontinued games like “World of Warcraft,” prepayments for unsold game inventory, and prepaid deposits for several undeveloped games. It seems that the disagreement between the two companies was far from professional, with both parties pointing fingers and publicly taunting each other.
While it’s still uncertain whether NetEase will proceed with the lawsuit, there’s a chance that the two companies could come to a settlement or an agreement on licensing, allowing Blizzard to resume operations and services in China. However, this appears unlikely at this point, as Blizzard has already closed its offices in the country.
The whole disagreement has been compared to a public breakup. If you remember, we reported before how NetEase destroyed a World of Warcraft statue outside its headquarters and live-streaming the entire process. Even Blizzard’s office wasn’t spared as they also demolished the workspace and even shared images on social media. Simon Zhu, NetEase’s head of partnerships, commented on the situation, stating that “One day, when what has happened behind the scenes can be told, developers and gamers will have a whole new level understanding of how much damage a jerk can make.”
The lawsuit comes at a challenging time for Blizzard, as they have already faced workplace abuse allegations and have lost a considerable number of employees. It’s been reported that the company’s management has created a “crisis map” to keep track of which games they can and cannot ship with their current staffing situation. This lawsuit will undoubtedly add to their difficulties and may potentially harm their reputation further.
