Diablo Immortal China: Delay Raises Concerns Amid Licensing Freeze

The highly anticipated Diablo Immortal has finally launched globally, but its Chinese debut remains delayed due to unclear reasons. Despite generating around $14.5 million in revenue on iOS and Android within its first week since launch, the game's Chinese release is still pending a license from the National Press and Public Administration (NPPA).

The delay has raised concerns about the Chinese gaming industry's recovery from a nearly nine-month licensing freeze. 'Maybe the market is worried that this is a larger issue with the regulators,' said Vey-Sern Ling, senior analyst at Union Bancaire Privée.

NetEase, one of China's largest gaming companies and partner of Blizzard Entertainment, was expected to launch Diablo Immortal in China. However, the company received no license yet, leading to the delay. As a result, NetEase shares plummeted by over 10% on Monday to around $17.32 per share.

The official Diablo Immortal account on Weibo, China's equivalent of Twitter, was also blocked from posting last week for 'violating relevant laws and regulations,' according to South China Morning Post. The nature of the content that triggered this block remains unclear.

To make up for the delay, NetEase has promised special reward packages to Chinese players at launch. The company and Blizzard announced the postponement on June 19, citing optimization adjustments by the development team.

The Diablo Immortal's Chinese debut is closely watched as it marks a significant milestone in the country's gaming industry. With the licensing freeze still affecting many game developers, the delay has sparked concerns about the potential impact on NetEase's financial performance and the overall market.

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