The Fallout of Activision Blizzard and NetEase's Partnership: What Really Happened?

The turbulent breakup between long-time partners Activision Blizzard and China-based NetEase created a stir among the thousands of disgruntled gamers in the Chinese market. Recent reports by the New York Times have shed some light on the reasons behind the dispute and the eventual fallout between the two companies.

At the October talks between the two companies, a disagreement arose concerning the Chinese government's growing interest in regulating the video game market and the private sector. NetEase had requested that Activision Blizzard provide certain required information and documents (such as annual revenue), which were necessary to prepare for the new market. However, the request was refused by the US company. This, in turn, sparked further conflict and disagreements between the two parties.

Adding more fuel to the fire was the previous conflict between Bobby Kotick, the CEO of Activision Blizzard, and NetEase. Kotick had expressed his displeasure at NetEase's decision to invest in Bungie, which he felt would expose his company to additional delays and losses. So when a conversation between the two CEOs about a possible acquisition of the US company by Microsoft arose, it was the final straw, and the two finally reached the point of no return.

The aftermath of the breakup saw Blizzard's games being erased from the Chinese market, leaving thousands of gamers disappointed. While the cause of the rupture was largely a disagreement between the two companies, the new Chinese laws and regulations, as well as the ongoing tensions between the US and China, certainly played a major role. In the end, this particular chapter in US-China relations highlights the challenges the video game industry has been facing in recent years.