NetEase, Activision Blizzard Extend Gaming Alliance in China to 2020 as Revenues Gain
Yicai Global
/SOURCE : Yicai
NetEase, Activision Blizzard Extend Gaming Alliance in China to 2020 as Revenues Gain

(Yicai Global) Sept. 28 -- Chinese Internet and gaming company NetEase Inc., [NASDAQ: NTES] and US-based Activision Blizzard Entertainment, Inc. [NASDAQ: ATVI] have extended their mainland collaboration to January 2020, the companies said. Revenues at both companies have seen significant growth since their partnership began.

The renewed agreement includes Activision Blizzard's most popular games including World of Warcraft, StarCraft II, Diablo III, Hearthstone: Heroes of Warcraft, Heroes of the Storm, and Overwatch.

Netease and Activision Blizzard will also collaborate on new content for these games during the agreement period.

According to Activision Blizzard's second half results announced in August, their quarterly revenue jumped by 50 percent to USD1.57 billion from USD1.04 billion from the same period last year.

Activision's digital revenues were also record-setting, as the company brought in more than USD1.14 billion. Overwatch, a team-based multiplayer first-person shooter, that attracted 9.7 million players even in its beta stage was the major driving force of revenue.

Overwatch was launched globally on May 24, and was widely praised in the gaming industry press for its ability to bring in a new audience of casual players. To date, its users have already exceeded 15 million.

As Blizzard Entertainment's partner in China, NetEase announced in its second half earnings report that quarterly revenue was up 96 percent to CNY8.95 billion and net profit reached CNY2.72 billion, a massive growth of 91 percent from last year.

Net income from their online games totaled CNY6.44 billion, up 76 percent from the previous year. Sales of Overwatch reached 3 million over the same period.

The renewed agreement includes Activision Blizzard's most popular games including World of Warcraft, StarCraft II, Diablo III, Hearthstone: Heroes of Warcraft, Heroes of the Storm, and Overwatch.

Netease and Activision Blizzard will also collaborate on new content for these games during the agreement period.

According to Activision Blizzard's second half results announced in August, their quarterly revenue jumped by 50 percent to USD1.57 billion from USD1.04 billion from the same period last year.

Activision's digital revenues were also record-setting, as the company brought in more than USD1.14 billion. Overwatch, a team-based multiplayer first-person shooter, that attracted 9.7 million players even in its beta stage was the major driving force of revenue.

Overwatch was launched globally on May 24, and was widely praised in the gaming industry press for its ability to bring in a new audience of casual players. To date, its users have already exceeded 15 million.

As Blizzard Entertainment's partner in China, NetEase announced in its second half earnings report that quarterly revenue was up 96 percent to CNY8.95 billion and net profit reached CNY2.72 billion, a massive growth of 91 percent from last year.

Net income from their online games totaled CNY6.44 billion, up 76 percent from the previous year. Sales of Overwatch reached 3 million over the same period.

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