- Blizzard’s 14-year contract with NetEase ended in January 2023 over licensing disputes, leading to the shutdown of Blizzard games in China.
- NetEase sued Blizzard for $43.5 million, but the issue was resolved in April 2024 after Microsoft acquired Blizzard and renewed the deal.
- NetEase’s Marvel Rivals, a free-to-play hero shooter, is seen as a competitor to Overwatch 2.
The lawsuit also included claims related to the refund and customer service obligations that NetEase had to handle after Blizzard shut down its games.
The lawsuit
On January 23, 2023, the contract between Blizzard Entertainment and NetEase Games expired as the companies failed to renew their licensing agreements, citing disagreements over intellectual property control.
Blizzard objected to NetEase’s proposal that it should control licensing rights in China entirely. Furthermore, Blizzard required a substantial upfront payment of around $500 million from NetEase.
NetEase claimed that the demands made by Blizzard were “unreasonable.” It is rumored that the dispute was a long time in brewing. However, the particulars were not revealed.
This stalemate led to the end of the 14-year-long contract between Blizzard Entertainment and its publisher in China, NetEase. Following this, Blizzard Entertainment shut down several major titles in China, including World of Warcraft, Overwatch 2, and Hearthstone.
This decision left millions of players without access, sparking disappointment in the gaming community. Over a million players demanded refunds, leading to revenue losses for Blizzard and damage to its reputation.
The resolution
The spat ended after Microsoft gained ownership of Activision Blizzard. With Microsoft’s management changes at Blizzard Entertainment, the agreement with NetEase was renewed in April 2024.
Under the renewed publishing agreement, World of Warcraft, Hearthstone, Overwatch, Diablo, and StarCraft universes, were brought back to China.
Blizzard made many concessions for the players. The players were given access to their previous accounts. The players were also given in-game rewards to help them catch up to the new content.
NetEase offered a cash reward for Chinese guilds competing in an event in the WoW. This shows the companies’ appreciation for their loyal players.
Microsoft and NetEase also entered an agreement to explore bringing new NetEase titles to Xbox consoles and other platforms.
Marvel Rivals
A Challenge to Overwatch 2
Marvel Rivals and Overwatch 2, being hero shooters, are natural competitors, although Overwatch 2 is First Person Shooter while Marvel Rivals is Third Person.
Unlike Overwatch 2, Marvel Rivals has free-to-play characters from the launch and beyond, which gives it a significant advantage over the former, in which the characters became free in a later update.
Many people interpret the decision to launch the game with free-to-play characters as a direct challenge to Overwatch 2.
Overwatch’s Downfall
Moreover, some controversial decisions taken by Blizzard regarding Overwatch 2 have caused frustration among the players. This led to them looking for alternatives. Conveniently, Marvel Rivals became available.
It is quite clear from the trailer and the beta of the game that it is inspired by Overwatch. Marvel Rivals also has 6v6 combat, which was a beloved feature of Overwatch but was removed in Overwatch 2.
Despite all this, Overwatch fans mostly hope that Marvel Rivals will pose enough of a challenge to prompt Blizzard into improving Overwatch 2. Between 2 games competing for the top, it is always the fans that win.
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Heya, I’m Asad (Irre) Kashif! I’ve been writing about anything and everything since as far back as I can remember. Professionally, I started writing five years ago, working both as a ghostwriter and writing under my own name. As a published author and a council member in Orpheus, my journey in the world of writing has been fulfilling and dynamic.
I still cherish the essays I wrote about my favorite PS2 games, and I’m thrilled to have transformed my passion for game journalism into a career. I’m a theory crafter for Genshin Impact (and now Wuthering Waves) and have a deep love for roguelites and roguelikes. While I prefer indie games for their distinct aesthetic and vibes, I do enjoy triple-A games occasionally. I’ve also been playing League since season 6, and I main Akali! I have a keen interest in discovering and playing more obscure games, as well as researching forgotten titles. Additionally, I am a front-end programmer who dabbles a bit in gamedev occasionally.
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