According to Activision Blizzard, they’re just having disputes on business related matters.
China reports that Blizzard has asked them 4 unreasonable demands in hope to break their own contract.
First, the share ratio of Blizzard was further increased compared with more than 50% of revenue and net profit during the contract period from 2019 to 2022.
Second, NetEase will develop other IP mobile games of Blizzard for global distribution, but only enjoys the revenue share of the Chinese market, and NetEase must pay a deposit.
Third, regarding the game approval problem in China, Blizzard put forward binding clauses that cannot be guaranteed.
Fourth, when signing the renewal contract, NetEase has to pay two-years of cooperation money in advance, amounting to hundreds of millions of dollars.
So to me, if we were to believe China, this looks like Blizzard put forward unreasonable demands in hope that NetEase themselves were going to break contract, to which they did.
But one thing that failed was to find another publisher in China that is willing to come to these terms.
So Blizzard tried to go back to NetEase before the deadline by the Chinese government, but they instead declined, and now every Chinese player is unable the game.
So far, I think this is the only “source” available as Blizzard so far has not made a comment or be clear on the situation themselves.