Back in May, we learnt, thanks to Activision Blizzard themselves, that the Overwatch League was in trouble. According to Activision Blizzard, the esports league was facing headwinds that were taking a toll on current operations and its long-term future.
Activision Blizzard also said that efforts to address these challenges may be unsuccessful. However, the head of the Overwatch League, Sean Miller, also released a statement stating that the company remains fully committed to Overwatch esports and that the league would not be going away anytime soon.
But now, thanks to the release of Activision Blizzard’s most recent financials, the league could be forced to make significant changes or be shut down completely.
The financial report reads:
“During the second quarter, we amended certain terms of our collaborative arrangements with team entities participating in the Overwatch League. According to the amended terms, following the conclusion of the current Overwatch League season, the teams will vote on an updated operating agreement.
If the teams do not vote to continue under an updated operating agreement, a termination fee of $6 million will be payable to each participating team entity. This fee would total roughly $114 million.”
The Overwatch League never entirely managed to live up to the expectations of a city-based esports league. Not only is the league not bringing in money, but the planned move to playing home-and-away games in the style of pro sports leagues was battered by the Covid-19 pandemic.
Activision Blizzard is also facing other esports woes, and yesterday it was announced that it had laid off over 50 of the employees in its esports division.
Also, according to the report, it’s unlikely that Overwatch 2 will be making a splash in the esports pro scene again, as engagement and player investment in the game has declined quarter over quarter.
What do you think about all this? Will the Overwatch 2 esports league manage to reclaim their former glory? Let us know in the comments.