For a while now we have known that Blizzard was working on a game with Net Ease that would translate the World of Warcraft experience to the mobile platform. I think many of us became deeply concerned about what this might look like when Diablo Immortal launched and turned out to be the egregious money grab that it was. Yesterday Bloomberg broke the news that it seems like the partnership between Netease and Blizzard is strained and the World of Warcraft mobile project has been canceled. This game had reportedly been in development for three years and the only reason reported was a “conflict about financial terms”. So this leaves us to speculate exactly what happened and given that I like theorizing things I can see three paths that might have taken place. I have no knowledge if what I am about to say is true, but I am just theory-crafting the downfall of this game.
The Backlash from Diablo Immortal
Giving Blizzard the benefit of the doubt, it is entirely possible that they were caught off guard by the negative reaction towards Diablo Immortal by the traditional gaming audience. It is possible that they thought they were releasing a game that would play by mobile gaming practices and it would have no blowback on their existing franchise. This was wrong and Diablo as a brand has been deeply tarnished by this game. So for theory number one, it could be that folks inside of Blizzard realize this and do not want to do anything to harm the recovery trajectory of World of Warcraft. Interest in Diablo 4 has seemingly fallen as a result of Diablo Immortal, and there is no way that the Warcraft brand can sustain another hit to the player base. So it is entirely possible that WoW Mobile has had the plug pulled on it to stem the bleeding and signal a shift in direction.
NetEase in Hot Water
Anytime you talk about Chinese politics, things get confusing quickly. Right now both NetEase and Tencent seem to be singled out by China as “problem children”. There have been several stories indicating this including one from June where those two publishers were specifically excluded from getting games approved by the regulatory bodies. Video Games in general is getting caught up in a sweep of things being deemed harmful to “cultural unity”, and I do not have enough time to really address this point today. However, if you are curious look up the Tang Ping aka “lying flat” movement, and Bai Lan or “let it rot” movement. Essentially there is a group of disaffected youth that are actively rebelling against the “996” culture or 9 am to 9 pm 6 days a week. As a result video games, take-out food, and social media are being blamed… and the Chinese government has been actively targeting these sectors.
Diablo Immortal was clearly banking on the mobile game spending habits of the Chinese market for success and in order to bring a game into that market, you need to partner with a Chinese company. Generally speaking, this is required to navigate the regulatory red tape in order to get a green light. However, with NetEase already being shunned by these regulators, it is entirely possible that Blizzard is considering this a risky proposition and actively chopping for another company to collaborate with that is not being actively targeted.
Doing It On Their Own
I am certain that part of the equation with NetEase is also that they acted as a springboard to develop a mobile title. Diablo Immortal for example was built using the existing NetEase Messiah engine which likely sped up the development time considerably. Blizzard had released a few mobile apps but never anything to the level of a fully 3D action RPG, and as such, they were able to lean on a company that had released several. In the meantime, Blizzard has seemingly been actively building ArcLight Rumble, which itself is rather impressive graphically and by all accounts runs beautifully on various mobile devices. This appears to either be their own engine or leaning heavily on some tech from King, but whatever the case is not tied to NetEase.
So this makes me wonder if the canceling of WoW Mobile is a signal that they feel like they can do this on their own now. Granted this does nothing to help with the Chinese regulatory hurdles, but it seems as though as a company they are feeling like they may have mastered mobile development. With some experience in building a mobile title, maybe the company views it as a little less daunting. Maybe there are even direct assets that they would want to reuse given that ArcLight Rumble is set in the Warcraft universe. I’ve not personally had a chance to play the game but from what I have heard from friends it really is a solid outing.
Bits and Pieces of the Above
It could be bits and pieces of everything that I just talked about. I would love to think that Diablo Immortal was a bit of a wake-up call that while it quite literally is a machine for printing money, it is also damaging the company as a brand. I do not think Blizzard could survive another fiasco this time centered around the, even more, beloved brand of World of Warcraft. Even if you are not actively playing the game you have nostalgia for it, and that nostalgia can be weaponized if it is handled improperly. I also think that the current state of NetEase in Chinese politics is probably a non-starter as well. There is significant cultural turmoil happening and video games are getting caught up in the mix. Finally, I do think that after ArcLight Rumble, Blizzard as a whole is in a better state to take on their own mobile development. As a result, I would probably bank that it is a little bit of each of the above topics wrapped up into one mix that lead to the cancellation of this project.
Then again… as I said before I know nothing about this situation other than what I have read in the reporting so it could genuinely be none of the above. It could simply be as simple as what was stated that it was a “conflict about financial terms”. Maybe NetEase simply demanded a bigger cut of profits and that was enough to sever the relationship on this project.
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