China’s Influence in Video Games Undermines Fair Play and Compromises Security
Blizzard Entertainment was once a gold standard in gaming—synonymous with innovation, quality, and respect for players. However, its partnership with China’s gaming giant NetEase has fundamentally altered its principles. Diablo Immortal, a title that should have celebrated the beloved Diablo franchise, instead became a glaring example of a predatory, pay-to-win model designed to extract significant amounts of money from players.
Blizzard’s Partnership with NetEase: A Case of Foreign Manipulation
Blizzard’s collaboration with NetEase—the Chinese conglomerate led by billionaire William Lei Ding—is more than just a business arrangement. It represents a growing trend of foreign business interests undermining Western gaming standards. Rather than prioritizing player enjoyment or skill-based progression, Diablo Immortal’s mechanics are designed to psychologically manipulate users into excessive spending with minimal reward.
This shift highlights a broader concern: Blizzard, once an industry leader, has adopted aggressive monetization strategies that prioritize corporate profit over player experience. Internal scandals and financial instability have left it vulnerable to partnerships that erode its founding principles.
China’s Influence: How Foreign Business Models Are Reshaping the Industry
Blizzard’s downfall is not just about corporate decisions—it reflects a larger pattern of Chinese corporations influencing Western companies to adopt exploitative business models. NetEase and other Chinese gaming giants have long been known for their aggressive tactics, including:
• Loot Box Addiction – NetEase’s games frequently incorporate gambling mechanics, encouraging players to spend large amounts of money with no guaranteed return (The Wall Street Journal, 2021).
• Government Oversight & Data Exploitation – Unlike Western companies, NetEase operates under strict control of the Chinese Communist Party (CCP), raising concerns about data privacy and potential surveillance (The Financial Times, 2020).
• Corporate Espionage – NetEase’s partnership with Blizzard granted them access to proprietary game engines, design philosophies, and player behavior data, potentially giving the CCP an indirect foothold in the Western gaming market (Reuters, 2022).
The question must be asked: Is China using its gaming industry as another front for economic and digital dominance?
Security Risks: The Threat Beyond Gaming
NetEase’s unethical practices go beyond gaming. In 2023, nine of its top executives were arrested on bribery and financial crime charges involving over $139 million (The New York Times, 2023). This raises serious concerns about how the company handles sensitive user data, particularly given China’s history of state-backed cyber activities.
Given the CCP’s control over domestic corporations, there is growing concern that NetEase collects and shares private data from Western players. Spending habits, behavioral patterns, and in-game activity are valuable assets—not just for monetization, but also for potential state-backed data tracking.
The Israel Connection: A Battle for Ethical Tech and Consumer Rights
While China’s gaming industry has expanded its global reach, Israel stands as a counterforce in ethical gaming and cybersecurity. Israel’s tech sector has been a leader in developing fair monetization models and data protection measures that prioritize consumer rights. As the gaming industry wrestles with foreign influence, Israeli startups and cybersecurity firms could play a key role in shaping ethical, player-first gaming experiences.
Israel has already positioned itself at the forefront of AI and cybersecurity, making it an ideal ally in the fight against predatory digital practices. By fostering collaborations between Israeli tech firms and Western game developers, the industry could counteract exploitative business models and secure player data from foreign interference.
Apple’s Role in Reinforcing Exploitative Practices
The exploitation of players does not end with Blizzard and NetEase. Apple has played a role in reinforcing these predatory practices by promoting games like Diablo Immortal as a selling point for its new devices. Marketing campaigns for the iPad Pro M4, for example, highlight its ability to run Diablo Immortal at high settings, enticing new players into a pay-to-win trap.
To fully maximize a character in Diablo Immortal, players must spend an estimated $150,000. With diminishing returns, that number balloons to nearly $1 million. This is not just an unethical business model—it is corporate manipulation targeting vulnerable players for financial exploitation.
The Need for Government Oversight
The gaming industry has evaded meaningful regulation for far too long. The US government cannot afford to ignore this growing issue—gaming is no longer just entertainment; it is a billion-dollar industry with direct implications for consumers, data security, and foreign influence.
The Department of Justice (DOJ) and the Federal Trade Commission (FTC) must step in to establish stricter oversight on exploitative gaming practices, particularly those designed to manipulate players into excessive spending. Additionally, the new Department of Government Efficiency (DOGE) must investigate and regulate the predatory monetization tactics infiltrating US markets. Without intervention, the gaming industry risks losing its integrity, and American consumers will continue to fall victim to exploitative business models designed by foreign interests.
Legislative efforts like the Take It Down Act, championed by First Lady Melania Trump, were designed to address online exploitation. While primarily focused on online safety, it reflects a broader need for regulatory accountability across digital industries—including gaming (Politico, 2023).
Patent Concerns and Security Risks
The collaboration between NetEase and Blizzard—especially with the acquisition of Activision Blizzard by Microsoft—has raised concerns about security vulnerabilities. The integration of shared proprietary technologies and data could expose sensitive information, as seen in recent patent filings:
• Patent Number: 12204660 — Distributed data storage system providing enhanced security.
• Patent Number: 12200012 — Systems and methods for tracking and identifying phishing website authors.
• US Patent US20190091581A1 — System and method for driving microtransactions in multiplayer video games.
The Midnight Blizzard incident, in which malicious actors targeted Blizzard’s digital infrastructure, serves as a warning of how corporate data can be compromised. If Blizzard’s proprietary information falls into the wrong hands—especially foreign entities—it could have far-reaching consequences for both cybersecurity and consumer safety.
Conclusion: A Call to Action for Ethical Gaming
The situation with Blizzard and NetEase is more than just a gaming controversy—it is a warning to Western industries. Diablo Immortal is just one example of how far Chinese corporations will push exploitative monetization without regulation.
Without oversight, the gaming industry risks becoming another battleground for China’s economic and digital dominance over the West. The US and its allies, including Israel, must take decisive action to counteract foreign influence, protect consumers, and ensure corporate accountability in digital industries.
DOJ, FTC, and DOGE must act before it is too late. The question is no longer whether gaming companies will follow Blizzard’s path—it is how soon before China’s influence completely reshapes the Western gaming market.