In Might, Activision Blizzard warned that the Overwatch League shouldn’t be in an excellent place. Town-based esports league is dealing with “headwinds,” because the writer put it, which can be taking a toll on each its present operations and its long-term future. It additionally acknowledged that efforts to deal with these challenges “might show unsuccessful,” though Overwatch League head Sean Miller mentioned 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 vital adjustments to its construction on the finish of the present season, and may even shut down totally.
“Throughout the second quarter, we amended sure phrases of our collaborative preparations with workforce entities taking part within the Overwatch League,” the report says. “In accordance 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 underneath an up to date working settlement, a termination payment of $6 million will likely be payable to every taking part workforce entity (complete payment 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 enjoying home-and-away video games within the type 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—an enormous drawback on condition that 4 of the league’s groups are based mostly in that nation. In the meantime, the league shouldn’t be creating wealth: Activision mentioned at this time that revenues generated by the Overwatch League account for lower than 1% of the corporate’s complete 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 big gutting of Activision Blizzard Esports.” One other worker mentioned that Activision was planning the shutdown of a number of the instruments it makes use of to run its tournaments, and whereas replacements have been in growth, the layoffs included at the least a number of the individuals who have been engaged on them.
The probability 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 can embrace PvE story missions, a brand new sport 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 greater deal so far as boosting participant counts, however the way it will affect curiosity within the Overwatch League is a totally totally different query.
All in all, it is affordable to say that the way forward for Overwatch doesn’t look notably shiny proper now, and it makes me surprise if this post-season vote is admittedly extra of a formality than the rest: Does Activision actually suppose groups will go for the unsure way forward for a teetering league that no one appears particularly dedicated to over a big money payout? Or is the writer merely prepared to pay $114 million to place a pin in Overwatch esports and transfer on?
It is unimaginable 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 might proceed to function underneath a extra standard esports league format, assuming there’s ample curiosity amongst current esports orgs. However given the entire 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.