In December, we reported on how Chinese players are preparing for the end of World of Warcraft (opens in new tab) and the 14-year publishing agreement between Blizzard and NetEase is coming to an end. All new sales of Blizzard games in the region have been suspended since late last year, and while Blizzard has promised to find a solution to the save transition, a new Chinese publishing partner will need to be found to continue running the games.

It seems inevitable that Blizzard's games in China will cease to function on January 23, when the current contract expires, as NetEase has turned down a six-month extension offer under existing terms. Blizzard China said on Chinese microblogging site Weibo (via Reuters (opens in new tab)) that it contacted NetEase last week about the extension but was turned down:

"We are looking for a new partner and based on NetEase's existing terms, It is disappointing that they will not extend our gaming services for another six months," the statement said.

NetEase, a company whose early success was built on the success of its Blizzard-licensed games, did not comment. Publisher boss William Ding said last year that the two companies had "significant differences on important terms."

This has a broader context than just Blizzard and NetEase: all video games require Chinese publisher and government licenses, and the CCP is increasingly paying close attention to the content of foreign titles. On top of that, the CCP has limited children's gaming time to one hour a day on Fridays, weekends, and holidays in 2021. This is not an ideal situation for raiding parties.

It remains to be seen if Blizzard will be able to find another publishing partner in the region, and there is still no sign of a promised solution for player saves (which may be moot if the games never return). The publisher's games have always been immensely popular in China, and they may think that money can solve the problem, but the unknown factor here is whether the relationship with NetEase has simply fallen apart, or whether Blizzard is being squeezed out of the Chinese market as part of a broader trend.

I contacted Blizzard to ask about the situation, save transfers, and whether they expect to resume game operations in China.