Investing.com– Microsoft Corporation’s (NASDAQ:) Blizzard Entertainment and Chinese videogame firm NetEase Inc (HK:) said on Wednesday that they had revived a deal under which Netease will resume distribution of Blizzard’s games in China.
Microsoft’s gaming division will also explore a broader partnership with Netease, the tech giant said in a press release, under which the two will explore bringing Netease titles to the Xbox console and other platforms.
Netease and Blizzard’s agreement revives a 15 year deal under which the Chinese firm published all of Blizzard’s biggest titles in China, including franchises such as Hearthstone, Diablo, Overwatch, and Warcraft.
The two had signed a distribution agreement in 2008, but had failed to renew the deal for 2023.
Blizzard saw a major overhaul through 2023, after its parent firm, Activision-Blizzard, was taken over by Microsoft. The takeover could also be potentially linked to the new Netease agreement.
China represents a major player base for Blizzard, which has been somewhat struggling with its North American markets amid growing ire over its handling of the Diablo and Overwatch franchises.
Microsoft’s tie-up with Netease also likely represents an effort by the tech giant to push further into the Chinese market, which is largely dominated by PC gaming.
Netease’s Hong Kong shares rose 0.2% on Wednesday, after rallying nearly 4% in the prior session. The firm’s American Depository Receipts (NASDAQ:) also rose nearly 4% in overnight trade, after Chinese media reports said a deal with Blizzard was imminent.
