Blizzard-NetEase Joint Venture Clarified
August 25, 2009 by Joel Tan
Filed under MMORPG News, Random Rants, The9
After a month of speculations, Blizzard Entertainment has finally broken its silence on China’s investigation into the joint venture between the Western gaming giant and NetEase, a China-based online games operator.
According to online games portal 17173, Blizzard Entertainment co-founder and president Mike Morhaime clarified that the joint venture between Blizzard and NetEase would focus on providing technical support to World of Warcraft and wouldn’t be involved in other aspects of operation.
An article on 17173 also tagged The9, former operator of World of Warcraft in China, as the culprit behind the dissemination of rumors that the joint venture was established to operate several Blizzard games.
It is forbidden for foreign companies to operate online games in China either through joint venture or sole investment.
Last month, reports pegged the issue as mere rumors that stemmed from an announcement story by Blizzard late last year that said the company was entering into a joint venture with NetEase to operate other Blizzard games on the Battle.net platform such as StarCraft, Warcraft III: Reign of Chaos, and Warcraft III: The Frozen Throne.
So what’s really going on? This issue is getting out of hand, and the truth is we have heard only from Blizzard Entertainment and nothing from NetEase and the Chinese government. Not that I’m expecting them to give any statements.
And is it true that The9 instigated the rumor? Here’s exactly how 17173 put it:
Former WoW operator The9 (Nasdaq:NCTY) has claimed that the JV was established to operate several Blizzard games …
Very petty of The9 to do that. Sour grapes? And then again, it might just be an error in translation on the part of the China-based online games portal.
Here’s my two cents worth: It’s supposed to be a non-issue. First, it’s pretty clear that Blizzard Entertainment is merely ensuring that fans of World of Warcraft are getting their money’s worth by providing quality service through, of course, its licensee NetEase. Hence, the joint venture.
Blizzard isn’t going to profit from doing that since it’s part and parcel of licensing out a massively multiplayer online game like World of Warcraft. Besides, NetEase is paying Blizzard for the license to operate the game.
Let us review the brief but drama-filled saga of World of Warcraft in China:
WoW Expansion Still Under Review In China?
China Probing Blizzard-NetEase Venture?
The9 Opens New World of Warcraft Server
World of Warcraft Prompts Hiring at NetEase
World of Warcraft Slips From The9’s Grasp
