News Alert: Talks to launch Diablo Immortal on 25 Jul after one-month delay, positive to share price
• NetEase to launch Diablo Immortal on 25 Jul after a delay of one month, according to Bloomberg
• The confirmed debut date should ease investor nerves that the game delay will weigh on 2H22 performance
• Expect positive share price reaction as uncertainty regarding the timing of the launch has been lifted
What’s New
- Bloomberg reported that NetEase is planning to launch new mobile game Diablo Immortal in mainland China on 25 Jul after a one-month delay, citing sources.
- The blockbuster game is co-developed by Blizzard and NetEase, which was originally scheduled to be launched on 23 Jun in China. Yet, it was postponed by NetEase a few days before launch, citing the need for content enhancement.
- Diablo Immortal should be one of the few China’s blockbuster games in 2022. It ranked No.1 in App store and recorded 10 million downloads in the first week after its international launch outside the Asia region in Jun.
- NetEase has not commented on the news so far.
Our View:
- We expect positive share price reaction as uncertainty regarding the timing of the launch has been lifted.
- We believe a confirmed debut date should ease investor nerves that the delay of Diablo Immortal will weight on 2H22 performance. We forecast the game will contribute c.4% of total revenue in FY22.
- We currently rate BUY with TP of HK$194/US$124.
