Microsoft's Acquisition Plans Cause Rifts in Gaming Industry.

Miscommunication during a Zoom call between Activision Blizzard and NetEase led to the termination of their 14-year partnership, which was generating $750 million annually. NetEase suggested a licensing deal instead of a distribution-based one, which would have been more lucrative for them and better positioned them to comply with new Chinese government regulations. However, Activision executives saw NetEase's suggestion as a threat and offered a licensing deal with a $500 million upfront payment to offset regulatory complications. NetEase rejected the offer, citing a misalignment in corporate values. Over 3 million Chinese players lost access to Activision's games, such as "Overwatch" and "World of Warcraft," as a result of the split.