China has granted new publishing licenses to 88 online games, among its periodic approvals affecting games published by Tencent Holdings ( OTCPK:TCEHY ), NetEase ( NASDAQ: NTES ), and miHoYo (publisher of hit Genshin Impact).
It's a sign of further loosening of restrictions after a gaming crackdown in the country. Last month, China gave licenses to 44 foreign games for domestic release after an 18-month period.
Meanwhile in key China gaming news, NetEase has turned down an offer from Blizzard ( NASDAQ: ATVI ) to extend the companies' long-running in-country licensing agreement by six months - a move that sets up the withdrawal from China of hit titles like World of Warcraft.
A clause in NetEase's and Blizzard's last deal in 2019 allowed for a potential extension, though NetEase has declined it. Without an alternative provider to step in, Blizzard's content and services will be withdrawn from China on Jan. 23.
NetEase had signaled the potential withdrawal amid a breakdown in talks in November .
Morgan Stanley has freshly named NetEase a positive research tactical idea, noting game revenue growth inflection that could come earlier than the Street expects thank to strong performance of Egg Party and an earlier-than-expected license approval for Justice Mobile, which it expects to gross 0.8B-1.0B yuan in its first month.
For further details see:
China approves 88 new online games; NetEase spurns Blizzard extension