Overwatch League falling toward its inevitable end after Activision Blizzard faces major financial hiccup

The end of the Overwatch League might be in process very soon!

Overwatch League falling toward its inevitable end after Activision Blizzard faces major financial hiccup

(credits: Activision)

The eSports scene has bloomed throughout the globe, with high-tier tournaments popping up everywhere. However, not every game’s eSports scene out there is receiving success. Over the past year, the Overwatch League has been in quite an unable state. The Overwatch eSports scene, which has been in full bloom for the past few years, is now facing a dire situation. And the recent financial report from Activision may have set the Overwatch League towards its end. 

The Overwatch League once ruled the Global eSports industry. The Overwatch League was the first significant eSports league to franchise regional teams in significant locations. It also included live spectator events with local crowds and paid competitors, which was a first for the eSports sector. However, for the past few years, the League has been in a constant state of decline. The league’s format has been criticized as being too slow and boring. Moreover, the cost of entry has been prohibitive for many teams.

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The game itself has become less popular. Overwatch was once one of the most popular games in the world, but other games, such as Valorant and League of Legends, have since surpassed it. The recent financial report released by Activision-Blizzard-King (ABK) may as well put a nail in the coffin for the league. 

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Activision’s financial report marks the potential end of Overwatch League

Overwatch League falling toward its inevitable end after Activision financial report
(credits: Activision)

ABK released its financial report on July 19, and it paints a really grim picture for the Overwatch League. Furthermore, the report states, “Total revenues from the Overwatch League comprise less than 1% of our consolidated net revenues.” This came as a shock to some and an inevitable truth to the rest. The last five years for the League have been really bad and unstable.

During May, reports from Activision said that the league “continues to face headwinds that are negatively impacting the operations and, potentially, the longevity of the leagues under the current business model.” Moreover, the recent financial report is proof of this. The new report says,

“As previously disclosed, our collaborative arrangements for our professional esports leagues continue to face headwinds. 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 (total fee of approximately $114 million). As of June 30, 2023, a termination liability has not been accrued. Total revenues from the Overwatch League comprise less than 1% of our consolidated net revenues.”

Activision-Blizzard-King financial report 19th July 2023

This means that if the current franchised teams are not on board with accepting new terms, they can choose a termination fee and receive a sum of $6 Million. Toronto Defiant, a popular Overwatch League team, has already decided on the termination fee and made its way out. As a result, the Overwatch League teams with Chinese bases are in a potentially terminal position. Given that Blizzard Games still does not have a contract in China as a result of its split from publisher NetEase, this may be a simple and quick method to halt the Overwatch project.

It’s not yet certain that the league will end. However, considering the payout and the declining state of the league, fans are sure that the league is on its way to an end. While some are shocked by this, others wish that the league would end and start anew. So a change in the Overwatch League is coming, but it’s still not certain whether that’ll be good or not!

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