Activision Blizzard is allegedly being sued by Chinese internet company Netease for $44 million after pulling its games from the Chinese Market earlier this year.
Blizzard previously had a licensing agreement in place with Netease that dated all the way back to 2008 and while they previously enjoyed a successful partnership, the relationship between the two companies has soured significantly in recent years.
Blizzard Reportedly Being Sued For $44 Million
Following Blizzard’s decision to pull its games from the Chinese market, players in the country have been left unable to purchase or download high-profile titles like Overwatch, Diablo 3, and World of Warcraft. According to the Chinese publication Sina Technology, Netease has responded by filing a lawsuit against the gaming giant to recover refund costs for discontinued games and services.
The company is also apparently claiming compensation for unsold merchandise and the investment it made toward undeveloped games. Netease also believes that their previous licensing deal with Blizzard was unfair and favored the Warcraft developers as opposed to an equal partnership. The fallout between the two companies can be traced back to October of last year during a particularly heightened conference call. The nail in the coffin for the partnership between Blizzard and Netease came when the Chinese company declared that they use their influence to convince the country’s government to either block or support Microsoft’s acquisition of Activision Blizzard.
Following the disastrous meeting, Netease conducted a live stream on one of its gaming channels which showed the World of Warcraft statue outside its office being torn down and symbolizing the end of its relationship with Blizzard. Day’s later the studio’s games were removed from the Chinese market. Be sure to check back at GameWatcher for more on this situation as it develops.
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