Blizzard and NetEase fallout - how big is the impact?

[Ehrenpanzer]

Title.

Blizzard and NetEase right now are blaming each other for the end of their partnership and in the last days one company is accusing the other of wrongdoings. From this point on it just seems to get worse and worse and there are millions of players in China that are just cut off from Blizzard games in general.

How do you think all of this will continue and how big of an impact will this be for Blizzard in general and for WoW's future?

Short term? Massive... long term? Not a big deal, especially to Microsoft, who has a LOT of leverage on China and Chinese companies so I would expect a quick resolution to the issue once the takeover is official.

[TidalConflux]

You will have to forgive me if I don't trust a twitter post from a random Chinese person.

It gets even better, the proof only comes from the official newspaper of the Central Committee of the Chinese Communist Party.

[Nyel]

https://pandaily.com/blizzard-requir...e-sources-say/

story tldr from cn side: kotick wanted 2year payment ahead of time to prop up balance sheet for acquisition, netease said lol no. Then asked for 6months to find replacement for them and so they said gtfo.

Explains why they would be really mad and do the whole livestream trash blizz action.

No no, Blizzard is NOT AT FAULT!!!! It's the evil Chinese government, company or whatever. Some people will shill for this company anyway, it's ridiculous.

- - - Updated - - -

Short term? Massive... long term? Not a big deal, especially to Microsoft, who has a LOT of leverage on China and Chinese companies so I would expect a quick resolution to the issue once the takeover is official.

As much as I hope the acquistion goes through, at the moment I am doubtful it will be the case.

[Nymrohd]

It's real enough that the whole process of scientific research is designed to circumvent it. And it still crops up there.

I don't doubt Bobby is a greedy bastard, but this claim of wanting 2 years revenue upfront ist just way to absurd to be accepted without serious evidence.

Really? I honestly don't see it as that absurd, not for a licensing fee and especially given it is a foreign market. It secures the committment and removes exchange rate uncertainty. If NetEase does not have the cash on hand, they can easily finance it. I honestly don't see what is wrong with asking for this.

- - - Updated - - -

https://pandaily.com/blizzard-requir...e-sources-say/

story tldr from cn side: kotick wanted 2year payment ahead of time to prop up balance sheet for acquisition, netease said lol no. Then asked for 6months to find replacement for them and so they said gtfo.

Explains why they would be really mad and do the whole livestream trash blizz action.

The prepayment does not prop up the balance sheet though, it's just a liability for blizzard. The cash asset is not really desirable for acquisitions. I could see it being USEFUL if there is a case of currency rate matching in cash flows.

[Swnem]

No no, Blizzard is NOT AT FAULT!!!! It's the evil Chinese government, company or whatever. Some people will shill for this company anyway, it's ridiculous.

- - - Updated - - -



As much as I hope the acquistion goes through, at the moment I am doubtful it will be the case.

So... you are saying dictatorships are a good thing?
In normal countries, companies can do business. They are not forced to finance a 3rd party so the government can censorship, steal copyright and exert control over what the population is doing. I would argue you are shilling and it's a much more dangerous chilling.

[xenogear3]

I heard it is not just World of Warcraft.
All Blizzard games are gone in China, including Diablo, Hearthstone, Starcraft.

[TidalConflux]

No no, Blizzard is NOT AT FAULT!!!! It's the evil Chinese government, company or whatever. Some people will shill for this company.

Imagine unironically defending China to dab on Blizzard. We get it, Blizzard is terrible -- but I am not going to immediately trust the sole proof coming from directly the CCP's mouth.

[Nyel]

Imagine unironically defending China to dab on Blizzard. We get it, Blizzard is terrible -- but I am not going to immediately trust the sole proof coming from directly the CCP's mouth.

Nobody is defending China. But people put the sole blame on China, which is ironical based on Blizzard's last years and their shady business practices.

[rrayy]

No no, Blizzard is NOT AT FAULT!!!! It's the evil Chinese government, company or whatever. Some people will shill for this company anyway, it's ridiculous.

Not nearly as ridiculous as one who is championing doing business with an oppressive communist regime and all its human rights abuses.

- - - Updated - - -

Nobody is defending China. But people put the sole blame on China, which is ironical based on Blizzard's last years and their shady business practices.

But you are by virtue of putting all blame on Blizzard. LOL China is an oppressive regime but it is Blizzard who is shady.

[TidalConflux]

Nobody is defending China. But people put the sole blame on China, which is ironical based on Blizzard's last years and their shady business practices.

Im still not going to immediately believe the official newspaper of the CCP regardless of your deflection.

[Triceron]

But you are by virtue of putting all blame on Blizzard. LOL China is an oppressive regime but it is Blizzard who is shady.

Because both are shady. Not sure why mutual exclusivity is being implied here.

[rrayy]

Because both are shady. Not sure why mutual exclusivity is being implied here.

He is literally attacking Blizzard while saying nothing about China and basically putting all blame on Blizzard not to mention taking the word of the official state newspaper of China as 100% fact. But no he is not defending China at all.

[Triceron]

He is literally attacking Blizzard while saying nothing about China and basically putting all blame on Blizzard not to mention taking the word of the official state newspaper of China as 100% fact. But no he is not defending China at all.

Yes, I am aware.

And the response to that implied Blizzard is somehow excusable or free from criticism just because you don't trust the information coming from China. Not a very good response, considering both are shady.

[Relapses]

Yes, I am aware.

And the response to that implied Blizzard is somehow excusable or free from criticism just because you don't trust the information coming from China. Not a very good response, considering both are shady.

One's shady because it's an American corporation. The other is shady because its a borderline authoritarian regime known to disappear dissenting political voices and may very well be covering up an active humanitarian crisis on par with the Holocaust. They're not really comparable.

[Triceron]

One's shady because it's an American corporation. The other is shady because its a borderline authoritarian regime known to disappear dissenting political voices and may very well be covering up an active humanitarian crisis on par with the Holocaust. They're not really comparable.

Wasn't comparing them, sorry if you think I was.

Not sure what part of 'one doesn't excuse the other' you're not understanding here.

[huth]

Wasn't comparing them, sorry if you think I was.

Not sure what part of 'one doesn't excuse the other' you're not understanding here.

What is there to excuse on Blizzard's side, though? They're fully within normal parameters for a publically traded American company. If you have an issue with that, you have an issue with American capitalism and corporatism, not with Blizzard specificially. China is a different story.

[deenman]

Not nearly as ridiculous as one who is championing doing business with an oppressive communist regime and all its human rights abuses.

are we sure blizzard hasnt dont more human rights abuses by this point kekw

[Triceron]

What is there to excuse on Blizzard's side, though? They're fully within normal parameters for a publically traded American company. If you have an issue with that, you have an issue with American capitalism and corporatism, not with Blizzard specificially. China is a different story.

Yes but they've also done shady things. For example, there is recent news about them taking a $35m fine for misconduct concerning "Failing to Maintain Disclosure Controls Related to Complaints of Workplace Misconduct and Violating Whistleblower Protection Rule".

And that's not merely excusable simply because 'China is deplorable'.

I mean, your example about capitalism and corporatism is also a different story, since you're not exactly talking about about Blizzard's shady business practices.

[rrayy]

Yes, I am aware.

And the response to that implied Blizzard is somehow excusable or free from criticism just because you don't trust the information coming from China. Not a very good response, considering both are shady.

That was't the implication at all. That is simply wanting a more credible source.

[huth]

I mean, your example about capitalism and corporatism is also a different story, since you're not exactly talking about about Blizzard's shady business practices.

If you think those "shady business practices" are not normal corporate business, i've got a nice red bridge on the west coast for you.