14 DAY TRIAL // Activision Blizzard has confirmed that it has ended its agreement with The9 for the operation of World of Warcraft in China. The MMO will now be operated in the country by another company, namely NetEase. The contract is rumored to be for a duration of three years and Activision Blizzard has not officially disclosed why it has chosen to change operators.
The main reason that seems to be behind this change of operator is linked to the royalties that Activision Blizzard is getting from China. Analysts are estimating that the royalty rate is set to reach 55%, more than double the previous one, and that 140 million dollars will be created for the maker of the game.
At the moment, there are about one million Chinese players of World of Warcraft, and that number is expected to increase, as more of the country is connected to broadband and as more players discover the MMO. Unfortunately, the MMO gamers from China are often stereotyped as being gold farmers and sellers who are more interested in gaming the system for personal profit rather than enjoying the title itself.
Robert Kotick, who is the chief executive officer of Activision, is saying that, “We believe this new relationship will promote a consistent level of quality and service in mainland China for each of the games that Blizzard Entertainment is partnering with NetEase on, including WarCraft III and StarCraft II, as announced last year. In addition, we believe this new relationship positions us well for the long-term, and despite the near-term impact of the transition, we are reaffirming our calendar 2009 financial outlook.”
The9 will continue to operate its own products, which include MU, Sould the Ultimate Nation and Granado Espada. The share value of the company has lost about a quarter of its worth once the rumors began to swirl that it could lose the World of Warcraft rights.