Investing.com – Microsoft Corp.’s Blizzard Entertainment (NASDAQ:) and Chinese video game company NetEase Inc (HK:) said on Wednesday they have renewed an agreement under which Netease will resume distributing Blizzard games in China.
Microsoft’s gaming division will also consider a broader partnership with Netease, the tech giant said in a press release, in which it will explore the possibility of bringing Netease games to the Xbox console and other platforms.
The Netease-Blizzard deal renews a 15-year agreement under which the Chinese firm published all of Blizzard’s biggest games in China, including franchises such as Hearthstone, Diablo, Overwatch and Warcraft.
They signed a distribution agreement in 2008, but were unable to renew it until 2023.
Blizzard has undergone major changes until 2023, after its parent company Activision-Blizzard was taken over by Microsoft. The takeover could also potentially be linked to Netease’s new deal.
China represents a large player base for Blizzard, which has struggled with its North American markets amid growing discontent over its handling of the Diablo and Overwatch franchises.
Microsoft’s collaboration with Netease also likely represents the tech giant’s attempt to push further into the Chinese market, which is largely dominated by PC games.
Netease shares in Hong Kong rose 0.2% on Wednesday after rising nearly 4% in the previous session. The company’s American Depositary Receipts (NASDAQ:) also rose nearly 4% in overnight trading after Chinese media reports said a deal with Blizzard was imminent.