NetEase Postpones Release Of Game Indefinitely After Politically Controversial Social Media Post

• NetEase, Inc (NASDAQ: NTES) has postponed the June 23 release of Diablo Immortal in China indefinitely, CNBC reports.

• Recently, Weibo Corp (NASDAQ: WB) banned the official account of Diablo Immortal from posting for "violating relevant laws and regulations."

• NetEase and China fell out over the former's Weibo account post that allegedly alluded to Winnie the Pooh, a popular way to refer to President Xi Jinping derisively, the Financial Times reports. The post read, "Why hasn't the bear stepped down."

• Also Read: Alibaba, Other Chinese Stocks Pop As China's Top Economic Official Expresses Support For Digital Platform Ahead Of 2022 Election

• NetEase and Activision Blizzard, Inc (NASDAQ: ATVI) had co-developed the game.

• The companies justified the delay by citing adjustments made by the development team.

• Diablo's focus on slaying demons and witches clashed with China's disapproval of games with violent or religious content, Reuters reports.

• NetEase released Diablo Immortal outside of China on June 2, earning over $24 million during the first two weeks since the rollout.

• After a hiatus, China resumed publishing licenses for games, which continued to miss out on the more prominent gaming companies like Tencent Holding Ltd (OTC: TCEHY) and NetEase.

• Price Action: NTES shares closed lower by 1.69% at $93.17 on Friday.

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