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Activision Blizzard Cuts Esports Staff Amid Overwatch League's Uncertain Future

Activision Blizzard Esports Layoffs, Overwatch League’s Future in Franchise Owners’ Hands

Image: Joe Brady

Blizzard recently released its second-quarter earnings report, which revealed that the fate of the Overwatch League depends on a vote by team owners on an updated operating agreement. If the owners decide not to continue, a termination fee of $6 million will be paid to each participating team, totaling approximately $114 million.

Given the financial struggles in recent years, including owed franchise fees and team developments, it is speculated that franchise owners might choose to end the Overwatch League, taking the payout and concluding the franchise era of Overwatch esports.

However, the Overwatch League commissioner, Sean Miller, reassured fans that Blizzard remains committed to Overwatch esports and is working towards a revitalized global scene that prioritizes players and fans. The league is exploring examples from other esports leagues, including the Apex tournament, as a potential model for the future.

Despite the optimistic outlook from Miller, there is uncertainty surrounding the future of the Overwatch League. The article also highlights recent layoffs in Blizzard’s esports department, impacting around 50 employees, leading some to question the company’s commitment to esports amid its acquisition by Microsoft.

The laid-off employees expressed surprise and disappointment with the decision, believing the company is ill-equipped to support esports internally after the upcoming changes. The situation contrasts sharply with Miller’s positive outlook, leaving the future of Overwatch esports uncertain as Microsoft’s acquisition approaches.

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