NetEase Is Reportedly Suing Blizzard Entertainment for $43.5 Million

NetEase has reportedly filed a lawsuit against Blizzard Entertainment, seeking ¥300 million Yuan (roughly $43.5 million).

This reported move comes on the back of the two parties’ split after Blizzard ended their China licensing deal with NetEase.

NetEase has filed this lawsuit against Blizzard Entertainment to cover refunds for discontinued games and services, as per the Chinese publication Sina Technology (via Wowhead).

NetEase is also seeking compensation for unsold merchandise inventory and deposits on undeveloped games, as per the report. The company also wants compensation for “unequal provisions favoring Blizzard Entertainment” in the licensing agreements between the companies.

Blizzard Entertainment ended its partnership with NetEase earlier this year after the two parties had been in licensing agreements since 2008. This move effectively pulled all of Blizzard’s games from the Chinese market in January 2023

This meant that players in China no longer had access to Blizzard games including World of Warcraft, Hearthstone, Overwatch, Diablo 3, Warcraft III: Reforged, the StarCraft series, and Heroes of the Storm.

Back in January when the deal expired, NetEase had also demolished a Blizzard statue on January 18, signaling how the partnership between the two companies had reached a sour end.

“We’re immensely grateful for the passion our Chinese community has shown throughout the nearly 20 years we’ve been bringing our games to China through NetEase and other partners,” said Blizzard Entertainment president Mike Ybarra when announcing the end of the licensing agreement in November last year.