Core Points - On January 23, NetEase announced the termination of Blizzard's game services in China, marking the end of a 14-year partnership [1] - As of January 24, 2023, all Blizzard games operated by NetEase, including "World of Warcraft," "Hearthstone," "Overwatch," "Diablo III," "Warcraft III: Reforged," "Heroes of the Storm," and "StarCraft," will cease operations in mainland China [1] - Blizzard will close Battle.net login and all game servers, along with the game client downloads [1] - NetEase expressed gratitude to players and emphasized the importance of their accounts and characters, promising to assist players until the last moment [1] - Refund arrangements for players will be announced after the service termination, with players advised to follow the "Blizzard Game Service Center" WeChat account for updates [1] - The partnership ended due to an inability to reach agreements on key operational terms related to sustainable operations and the core interests of the Chinese market and players [1]

Industry Overview - In Q1 2025, China's gaming market revenue reached 85.704 billion yuan, a year-on-year increase of 17.99% [2] - The mobile gaming market generated 63.626 billion yuan, growing by 20.29% year-on-year, while the client game market earned 17.919 billion yuan, with a growth of 6.85% [2] - Chinese self-developed games saw overseas revenue of 4.805 billion USD, marking a 17.92% increase [2] Company Performance - Xindong Network reported a revenue exceeding 5 billion yuan for 2024, a growth of approximately 50%, with a net profit of 0.811 billion yuan [3] - Century Huatong's revenue for 2024 was 22.620 billion yuan, up 70.27%, with a net profit of 1.213 billion yuan, increasing by 131.51% [3] - In Q1 2024, Century Huatong's revenue was 8.145 billion yuan, a 91.12% increase, and net profit reached 1.35 billion yuan, growing by 107.2% [3] - The internet gaming business of Century Huatong generated 20.966 billion yuan, up 85.94%, with overseas revenue of 11.368 billion yuan, increasing by 85.9% [3] - Point Interactive, a subsidiary of Century Huatong, achieved approximately 15 billion yuan in revenue, a growth of 155%, contributing nearly 70% to the group's total revenue [3] - Giant Network's social deduction game "Space Kill" integrated Tencent's AI model, generating over 7 million AI players [3] Regulatory Environment - South Korea will implement a "designated agent system" for overseas gaming companies starting October 23, requiring them to appoint a local agent responsible for legal obligations [4] - Non-compliance may result in fines up to 2 million KRW, with the original game company also held accountable [4] - Nexon is expected to secure the operation rights for "Overwatch Mobile" in Korea and Japan, collaborating with Blizzard on "StarCraft" IP content [4] - EA's studio is undergoing layoffs, affecting around 100 employees, leading to the halt of development on "Titanfall" and another game [4]

Industry Overview - In Q1 2025, China's gaming market revenue reached 857.04 billion yuan, marking a year-on-year growth of 17.99% [4] - The mobile gaming market generated actual sales revenue of 636.26 billion yuan, with a year-on-year increase of 20.29% [4] - The client gaming market achieved actual sales revenue of 179.19 billion yuan, reflecting a year-on-year growth of 6.85% [4] - Revenue from China's self-developed games in overseas markets amounted to 4.805 billion USD, showing a year-on-year increase of 17.92% [4] Domestic Company News - Xindong Network reported a revenue growth of approximately 50% in 2024, with total revenue surpassing 5 billion yuan for the first time, achieving profitability with a net profit of 811 million yuan [5] - Century Huatong's revenue for 2024 reached 22.620 billion yuan, up 70.27% year-on-year, with a net profit of 1.213 billion yuan, a 131.51% increase [6] - Century Huatong's Q1 2025 revenue was 8.145 billion yuan, reflecting a year-on-year growth of 91.12% [6] - The internet gaming business of Century Huatong generated 20.966 billion yuan, a year-on-year increase of 85.94% [6] - The subsidiary Diandian Interactive's revenue for 2024 was approximately 15 billion yuan, growing 155% year-on-year, largely driven by the success of the game "Whiteout Survival" [6] - Giant Network's game "Space Kill" has integrated Tencent's AI model, generating over 7 million AI players for a new gameplay experience [10] Compliance and Regulation - South Korea will implement a "designated agent system for overseas game companies" starting October 23, requiring foreign game companies to appoint a local agent responsible for legal obligations [12] - Non-compliance with the designation can result in fines up to 2 million KRW (approximately 10,000 RMB) [12] International Developments - Nexon is expected to secure the Korean and Japanese operating rights for "Overwatch Mobile" and will collaborate with Blizzard to develop content for the "StarCraft" IP [14] - EA's studio is undergoing layoffs affecting nearly 100 employees, leading to the halt of development on two games, including "Titanfall" [15]