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Posted by
BuckGB
at 11:23 pm on 11.2.2009 (3 weeks ago)
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GameSpot brings word that China's General Administration of Press and Publication has revoked NetEase's permit to operate Blizzard's World of Warcraft, citing "gross violations" of Chinese law. Regulators reportedly claimed NetEase, which landed the localization contract for the massively multiplayer role-playing game in April, had committed "gross violations" of Chinese law. As a result, GAPP officials ordered NetEase to stop charging players of the game in China and cease accepting any new registrations. It also rejected the company's application to localize the first WOW expansion, The Burning Crusade.
As a result of the GAPP's move, NetEase saw its shares fall 2.4 percent on the NASDAQ stock exchange to close the day at $37.69. (Shares were down an additional 1.38 percent in after-hours trading.) Reps for the company told Reuters they believe they are in full compliance with the GAPP regulations, and were seeking "clarification" as to what exact violations were committed. It'd be interesting to know just how much revenue was at stake here. Millions? Tens of millions?
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(@ 11:11 am on 11.3.2009) Location:
Posts: 3
According to http://www.gamesbrief.com/2009/04/did-the9s-relationship-with-ea-cost-it-90-of-its-revenue/,
WoW China had generated around 230 million USD in revenue for the former operator The9 in 2008.
The new Chinese WoW operator is paying Blizzard $300 million for three years of WoW license in China. Expect NetEase to call upon all government connections it has to fight GAPP's decision.