After a year of breaking up, news of a reunion between former gaming duo NetEase and Blizzard came. On the evening of December 25th, some media reported that "NetEase and Blizzard have resumed cooperation". As soon as the news spread, discussions on related topics quickly surged onto Weibo's hot search, sparking heated discussions among netizens.
According to Weibo
It is worth noting that Blizzard's management also underwent significant changes this month. On December 21st, it was announced that the CEO of Activision Blizzard will officially resign from his position on December 29th, and the Chief Communications Officer will leave in January next year.
The interweaving of two messages inevitably triggers suspicion. A netizen raised a question: As soon as there was news of a comeback, the CEO resigned. So, is the previous breakup related to the factional struggle within Blizzard? Regarding this, angel investor and senior artificial intelligence expert Guo Tao analyzed in an interview with Financial Investment News, "We cannot simply link the two together, after all, changes in the company's top management are the norm. The restoration of cooperative relationships may be based on longer-term strategic considerations."
"Even if combined, it's difficult to go back to the past"
Media outlets have sought confirmation from NetEase and Blizzard regarding the rumored "compound" in the market. NetEase has stated that it will not respond to the news of their re cooperation, while Blizzard China has stated that there is currently no information to share.
However, it is worth noting that the World of Warcraft community in the NetEase Gamer Forum app "NetEase Gods" has recently resumed updates, adding new content including the War of the Earth and the Warcraft Exploration server. After the previous collaboration between Blizzard and NetEase broke down, the last message in the Warcraft section of this app was a service suspension announcement. At present, the suspension notice has disappeared and the community update has begun to resume. Some argue that this is in preparation for the return of Blizzard's national server.
It is reported that starting from December 20th, the World of Warcraft community has been re launched on NetEase's "Gods" platform. The World of Warcraft community has started to update related "blue posts" content, including new content such as the Heart of the Earth War and the Warcraft Exploration server. Previously, news about NetEase ceasing to represent World of Warcraft in the community circle could no longer be searched.
However, it should be noted that according to media reports, Blizzard has been in talks with several domestic game manufacturers regarding the return of the Chinese server in the past period of time, and ultimately chose to re collaborate with NetEase. After the cooperation is confirmed, NetEase and Blizzard need to rebuild the national server operation team and test the servers and related systems. Therefore, players may have to wait for half a year or more for the game to be re launched.
"Even if both sides cooperate again, it will be difficult to go back to the past," renowned gaming industry analyst Zhang Shule told Financial Investment News reporters.
"Choosing NetEase is the shortest path for Blizzard's domestic server to reopen, and it is also one of the best choices for Microsoft to transform Blizzard's IP mobile game. There are no permanent friends in the mall, only permanent benefits. The departure of Activision Blizzard's CEO also provides a certain level. However, in reality, NetEase will not focus on operating Blizzard's existing games, especially in the current era of great success at Egg Party," said Zhang Shule.
Zhang Shule believes that currently, NetEase may place more emphasis on Blizzard's IP adapted mobile games, while Microsoft and Activision Blizzard are more focused on NetEase's existing server reserves that originally served Blizzard games (relevant operators have been cleared). On this basis, perhaps there is a premise of reconciliation between the two sides, but Microsoft should have made significant concessions for this, just like before when it made concessions to major gaming platforms and companies in order to acquire Activision Blizzard. However, rebuilding the team and reopening the license plate will take time, and whether the two sides will cooperate or not is still unknown.
"It has been a year since the server was suspended, and players' hearts have been hurt. Everything can no longer go back to the past," said Zhang Shule.
or Microsoft is preparing to enter mobile games
Zhang Shule believes that the biggest benefit of Activision Blizzard's re-entry into the Chinese market is simply maintaining the presence of Blizzard's IP. Despite the aging of the Blizzard series, there is still a sense of presence, and new games in the future may become a great addition. At the same time, it can explore more avenues for Microsoft's future cooperation in the Chinese market.
For Microsoft, its gaming business is mainly focused on Xbox, and it is difficult to quickly break through due to review issues. However, for Microsoft to enter the mobile game market, NetEase is a good partner, far more stable than Tencent's cooperative and competitive relationship.
The advantages of NetEase include existing servers, teams that can be recalled, and a faster version number for approval, which is also a quick way to restart Blizzard's domestic server. However, for NetEase, the real opportunity for cooperation lies in Microsoft's desire to enter the mobile game field, which is an advantageous project for Chinese game manufacturers. However, such cooperation may be related to Diablo Immortal Similarly, collaborative research and development, Chinese servers belong to NetEase, and overseas expansion belongs to Microsoft. Everyone takes what they need. But for NetEase, which has already gained experience in overseas expansion and Blizzard game development, its sense of gain is not strong, and its overseas expansion is only about whether it can have more interaction with Microsoft Xbox Zhang Shule said.
Guo Tao also has a similar view. "After Blizzard was acquired by Microsoft, its partnership with NetEase changed. As a global technology giant, Microsoft has its own strategic plan for Blizzard's development. Therefore, this merger may be related to Blizzard's acquisition by Microsoft. Microsoft may hope to further expand the Chinese market through cooperation with NetEase," Guo Tao said.
In Guo Tao's view, this "reunion" has a positive impact on the future development of Blizzard and NetEase. Blizzard can further expand its market share in China and increase revenue sources through cooperation with NetEase. NetEase can also leverage Blizzard's brand and gaming resources to enhance its position in the gaming industry. In addition, cooperation between both parties can promote the exchange of technology and experience, and promote the development of the gaming industry.
However, last week's new regulations in the gaming industry caused industry turbulence. At this critical moment, will this become a major uncertainty factor for cooperation between the two sides?
Regarding this, Guo Tao stated that the new regulations have put forward new requirements for game content, operation modes, and other aspects, which require both parties to adapt and adjust. However, as partners, Blizzard and NetEase should work together to actively address the challenges brought by the new regulations and find suitable solutions. "Only through cooperation and innovation can both parties return to the past and achieve greater success," said Guo Tao.
Journalist observation
"Harmony" can be "as it was" not easy
After breaking up for a year, Blizzard NetEase began to show signs of "reconciliation". For the rumor of a comeback, players who had been suspended for a year started singing "Love Business" under the relevant news. "In the beginning, you wanted to separate, then separate, now you have to use true love to coax me back." Blizzard, which cannot do without the Chinese market, has been looking for a takeover hero for a year, but in the end, it still seeks peace forward. But time has passed and it is uncertain whether we can reconcile in the end, but even if we reconcile, it is impossible to remain the same as before.
From the cooperation between the two parties before the breakup, it is far from the point where "whoever leaves cannot live". According to information previously released by NetEase, the revenue provided by "Battle Net" is only in single digits, and the cessation of cooperation with Blizzard will not have a significant impact on revenue and profits. On the other hand, according to financial reports, Blizzard's several games receive an annual share of approximately 2 billion yuan in Chinese servers, accounting for only 3% of Activision Blizzard's overall revenue.
If we insist on saying who relies more on each other, then Blizzard should have the upper hand. In the first quarter of 2023, when Blizzard left the Chinese market, the number of active players worldwide significantly decreased to only 27 million, which is close to halving compared to the 45 million active players in the fourth quarter of 2022. In terms of revenue, it is also bleak. Blizzard's revenue in the first quarter of 2023 was $443 million, a 44% drop compared to the fourth quarter of 2022.
NetEase's revenue from gaming and related value-added services in the first three quarters of this year was 60.6 billion yuan, an increase of 9% compared to 55.5 billion yuan in the same period last year. In the third quarter, the net income was 27.3 billion yuan, and the net income of the gaming sector was 21.8 billion yuan, a year-on-year increase of 16.5%.
Income won't deceive people. It's clear at a glance who has been doing well and who has been doing poorly this year.
The importance of the Chinese market to Blizzard is beyond doubt. Although it may seem harmless, for Blizzard now, there are only two options: either to reconcile with NetEase Games and return to the Chinese market using the previous game licenses; Either choose a new agent, spend some time polishing the game operation capabilities and understanding between both parties, and spend a certain amount of time applying for an imported game license.
