More dissention comes from the nWo. DiBiase in real life decides that the direction of the nWo gimmick doesn't jive with him being a minister on the side, so he leaves to become manager to the Steiners and challenge The Outsiders (who now, along with Konnan and Syxx, call themselves the Wolfpack--all real life friends). He is replaced by Eric Bischoff, making his heel turn at WCW/nWo Souled Out. (Correction: Bischoff turned nWo in late '96. Souled Out that year was billed as being exclusively promoted by the nWo). Also making a return is Randy Savage, who is brought in under nWo rules and nWo contract. (Savage complained that he had been "blackballed" by Bischoff and sided with Sting. He later sided with Hogan, helping him beat Piper at SuperBrawl). Syxx is injured early in the year and sits most of it out. nWo Japan is offically recognized in March of 1997. Its charter members are The Great Muta, Tenzan, Masahiro Chono managed by Sonny Oono (Chono turned on Onoo at a Nitro broadcast, revealing himself to be nWo). The Giant quits the nWo in May and goes back to WCW. Roddy Piper takes control of WCW as a special commissioner of WCW, and decides to take on Hogan by forming a group of super-fighters from across the world (John Tenta and two friends of Piper--a boxer and a martial artist--won the spots, but were replaced by the Horsemen). Although it failed miserably, it did introduce a new rookie to WCW--Bill Goldberg, former Atlanta Falcon and Carolina Panther, who later on plays real havoc with the nWo.

WCW makes its mark into other markets, as it recruits NBA basketball star Dennis Rodman of the 5-time World Champion Chicago Bulls. They face a team of Luger/Giant at Great American Bash, with Lugar putting Hogan in the "Torture Rack 'O Doom" to win. nWo makes it's biggest mark yet in November. Curt Hennig (formerly Mr. Perfect) comes to WCW and is offered a position in the 4 Horsemen by Flair. Hennig accepts but quickly takes an nWo swerve, and in the process they demolish Flair and Arn Anderson, essentially killing the Horsemen. Sting takes the world title from Hogan for first time at Starrcade in December. (This was Sting's first match back since he started the "Crow" gimmick. Also notable: Bret Hart, who was serving as an official for the night, took over for Nick Patrick. Patrick was once again favoring the nWo in this match). WCW faces nWo for control of Nitro AGAIN when Eric Bischoff challenges announcer Larry Zybysko in a wrestler-vs-kickboxer winner-by-knockout match (Eric is a black belt in karate and is a kickboxing expert). Larry wins the match after Eric tries to use a loaded shoe, but the weight that was in it flies out and Larry nails Bischoff with it to get the pin. (The special referee for this match was Bret "Hitman" Hart, making his WCW debut).

What really was interesting about the nWo in 1997 was the fact that after the first half of the year, they pretty much got bogged down in the same old angles, something that really wouldn't break until the last 3 months of 1998.