In Could, Activision Blizzard warned that the Overwatch League just isn’t in an excellent place. The town-based esports league is going through “headwinds,” because the writer put it, which are taking a toll on each its present operations and its long-term future. It additionally acknowledged that efforts to deal with these challenges “could show unsuccessful,” though Overwatch League head Sean Miller stated the corporate stays “dedicated to Overwatch esports,” and that the league is “not going away anytime quickly.”
The way forward for the Overwatch League grew even murkier with the discharge of Activision’s most up-to-date quarterly monetary outcomes, which signifies that the league could possibly be compelled to make important modifications to its construction on the finish of the present season, and may even shut down completely.
“Through the second quarter, we amended sure phrases of our collaborative preparations with workforce entities taking part within the Overwatch League,” the report says. “In line with the amended phrases, following the conclusion of the present Overwatch League season, the groups will vote on an up to date working settlement. If the groups don’t vote to proceed below an up to date working settlement, a termination price of $6 million will likely be payable to every taking part workforce entity (whole price of roughly $114 million).”
Regardless of a torrent of cash being poured into it, the Overwatch League has by no means lived as much as its preliminary promise of a city-based esports league. The deliberate transfer to taking part in home-and-away video games within the model of professional sports activities leagues was battered by the Covid-19 pandemic, main sponsors have misplaced curiosity, and there is nonetheless no Overwatch writer in China—a giant drawback provided that 4 of the league’s groups are based mostly in that nation. In the meantime, the league just isn’t making a living: Activision stated as we speak that revenues generated by the Overwatch League account for lower than 1% of the corporate’s whole internet revenues.
A report by The Verge additionally factors to rising esports woes at Activision: The corporate laid off round 50 workers in its esports division yesterday, a transfer one worker described as “a major gutting of Activision Blizzard Esports.” One other worker stated that Activision was planning the shutdown of a few of the instruments it makes use of to run its tournaments, and whereas replacements have been in improvement, the layoffs included a minimum of a few of the individuals who have been engaged on them.
The chance of Overwatch 2 rejuvenating the professional scene additionally appears faint proper now. Activision acknowledged in its monetary report that Overwatch 2 “engagement and participant funding” have declined quarter over quarter, though it expressed hope that the Overwatch 2: Invasion replace approaching August 10, which is able to embrace PvE story missions, a brand new recreation mode, and a brand new hero, will flip issues round. August 10 may also see the debut of Overwatch 2 on Steam, which I believe will likely be a a lot larger deal so far as boosting participant counts, however the way it will impression curiosity within the Overwatch League is a very totally different query.
All in all, it is affordable to say that the way forward for Overwatch doesn’t look significantly shiny proper now, and it makes me marvel if this post-season vote is actually extra of a formality than anything: Does Activision actually suppose groups will go for the unsure way forward for a teetering league that no person appears particularly dedicated to over a major money payout? Or is the writer merely keen to pay $114 million to place a pin in Overwatch esports and transfer on?
It is inconceivable to foretell how the groups will vote with out understanding the phrases of the up to date working settlement. Even when the city-based construction is dropped, the Overwatch League may proceed to function below a extra standard esports league format, assuming there’s enough curiosity amongst present esports orgs. However given all the above, you’ll be able to see why gamers and followers doubtless aren’t too optimistic that the OWL will proceed.
I’ve reached out to Activision for remark and can replace if I obtain a reply.
