Big changes are on the horizon for Overwatch League as Activision Blizzard puts the future of the League up to a vote while laying off staff from its esports department.
In their second quarter earnings report released yesterday, Activision Blizzard detailed their plans to put the continuation of the franchise-based league up to a vote of the various teams.
“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)… Total revenues from the Overwatch League comprise less than 1% of our consolidated net revenues.”
Given recent troubles faced by the league, and by esports in general, many franchise owners may reasonably take the $6 million and exit the league, potentially meaning the end of Overwatch League as it currently exists after the 2023 season.
The League’s commissioner, Sean Miller, told The Verge that, regardless of outcome, Activision Blizzard does intend to continue a competitive ecosystem for Overwatch, though he was unclear on what this might look like other than alluding to taking some inspiration from the popular Apex tournament.
“I’m actually very optimistic about the future of Overwatch esports and the competitive ecosystem,” Miller said. “We are doing all we can to make the player experience and the fan experience one that people want to return to, want to be a part of, and get excited about to turn on.”
However, despite this professed optimism, the company’s esports department laid off about 50 of its employees yesterday just as the financial report was being published. According to one anonymous employee speaking to The Verge, the layoffs were very sudden and very rough.
“There was no warning. This was a complete shock to everyone, and none of us who were laid off were offered any opportunity to switch roles or teams.”
These sudden layoffs do cast some doubt on the official language of optimism about the company’s future in esports. However, we won’t know that future for certain until the vote later this year.