The 'Marriage' of the Century with Blizzard: How Ding Lei Secured World of Warcraft and Established NetEase's 'Gaming Empire'
What you'll learn:
- • When partnering with top-tier companies, showing respect for the 'product' and 'users' can win more trust than a mere monetary offer.
- • A great entrepreneur must not only be able to create great products but also possess the strategic vision and negotiation skills to integrate top global resources.
- • Long-term success is built on win-win partnerships, not zero-sum games.
Prologue: The "Challenger" to the Throne
In 2008, China's online gaming market was far from a blue ocean. Giants like Shanda, The9, and Tencent, each with their own flagship products, had carved up the territory, and the competition was fierce.
At this time, NetEase, while living comfortably and holding a top-three position in the industry thanks to self-developed products like "Fantasy Westward Journey," had a nagging sense of unease in Ding Lei's heart.
He was soberly aware of the huge risks of over-relying on a single line of self-developed products. To build a truly stable "gaming empire," NetEase needed not only strong "self-development" capabilities but also an equally powerful "agency" product line to form a "dual-wheel drive."
Just then, a once-in-a-lifetime opportunity appeared before him.
At that time, the partnership between the world's top gaming company, Blizzard Entertainment, and its Chinese operator for its blockbuster game "World of Warcraft," The9, was about to expire, and cracks had appeared in their relationship.
"World of Warcraft" was not just a game at the time; it was a cultural phenomenon, the "crown jewel" of the global online gaming world. Whoever could get its agency rights would control half of the Chinese gaming market.
A century-defining battle for "Warcraft" quietly began. Almost all industry giants were eyeing this "juicy prize."
To the outside world, NetEase did not seem to be the most powerful contender in this battle.
Act I: The "Mission: Impossible"
Ding Lei's desire to win "World of Warcraft" was exceptionally strong.
He knew that this would not only bring significant financial returns to NetEase but was also an excellent opportunity to enhance the NetEase brand and learn from the operational experience of a top global gaming company.
However, the difficulty of this negotiation was "epic."
Blizzard was known worldwide for its "quality" and "player experience," and they were extremely strict in their choice of partners. They needed not just a wealthy "agent," but an "ally" who could truly understand and respect Blizzard's "players first" cultural spirit.
To express his sincerity, Ding Lei decided to personally lead the team to negotiate with Blizzard.
In their first meeting, Ding Lei did not, like other competitors, immediately start talking about how much revenue he could bring to Blizzard. Instead, he spent more than half the time talking about his understanding and love for Blizzard games like "StarCraft" and "Diablo" as a "player."
He could even clearly state the details of a certain quest in "World of Warcraft" and the pros and cons of a certain class's skills.
This "player" posture instantly closed the distance between the two sides and made the Blizzard executives look at this Chinese CEO in a new light for the first time.
In the subsequent rounds of negotiations, Ding Lei made a promise that shocked everyone. He assured Blizzard that to provide Chinese players with the best gaming experience, NetEase was willing to invest heavily to set up the world's highest standard servers specifically for Blizzard games and to form a dedicated operations and customer service team of hundreds of people serving only Blizzard games.
This promise seemed like a "losing" deal at the time, but it precisely hit Blizzard's "soft spot."
Act II: Winning the "Bride"
Ding Lei's sincerity and determination ultimately moved Blizzard.
In August 2008, NetEase and Blizzard jointly announced that they had formally reached a strategic cooperation. NetEase obtained the exclusive operation rights in China for Blizzard's "StarCraft II," "Warcraft III," and the Battle.net platform.
Although this initial cooperation agreement did not include the most important "World of Warcraft," everyone understood that this was just the beginning. Ding Lei had already gained the upper hand in this century-defining battle.
The real showdown took place in 2009.
At the last moment before the original "World of Warcraft" agency contract was about to expire, Ding Lei flew to the United States again for a final closed-door meeting with the founder of Blizzard.
No one knows the specific details of that meeting. But it is rumored that Ding Lei only said one sentence to the founder of Blizzard: "Please believe that there is no other company in the world that loves your games and cares about your players more than we do."
In April 2009, the other shoe finally dropped. Blizzard officially announced that it would grant the exclusive operation rights for "World of Warcraft" in mainland China to NetEase.
NetEase had staged an incredible "shocking reversal" and successfully "won over" Blizzard.
Epilogue: The Final Piece of the Imperial Puzzle
Securing "World of Warcraft" became the most important milestone in the history of NetEase Games' development.
It was like the most perfect piece of a puzzle, completing the map of the NetEase gaming empire. A powerful self-developed product line, coupled with the world's top agency product line, gave NetEase the strongest "moat" to withstand any fluctuations in the industry.
The decade-plus deep cooperation with Blizzard also allowed NetEase's operations and R&D teams to learn the world's most advanced game development and management experience, laying a solid foundation for launching more high-quality self-developed products in the future.
What Ding Lei demonstrated in this epic business negotiation was not just business acumen, but a victory based on "values."
He deeply understood that the highest level of business cooperation is not built on short-term interests, but on the common "beliefs" of both parties and their "commitment" to users.
It was this shared belief in "good games" and "good players" that ultimately brought the two great companies, separated by oceans, together, and jointly opened a new "golden age" for online gaming in China.