Activision Blizzardrevealed in its second-quarter earnings report that it has started laying off esports employees ahead of changes tothe Overwatch League. This has left teams with the chance to vote to continue with the “updated operating agreement”, and if they choose not to, they will receive a termination fee of $6 million. Essentially, teams will vote on whether Overwatch League lives or dies.
As reported byThe Verge, the Overwatch League has been in a problematic financial position for the past few years. According to ABK, it makes up less than one percent of its consolidated net revenues, and last year, Activision Blizzard reportedly owed $400 million in franchise fees for Overwatch andCall of Dutythat were delayed due to the COVID-19 pandemic.
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However, as The Verge reports, the Overwatch League might continue in other forms. Commissioner Sean Miller said, “I want to be clear on one thing in particular, that Overwatch remains committed to a competitive ecosystem in 2024 and beyond. And we’re building toward a revitalized global scene that prioritises players and fans […] If you look at our playoffs format that we’re doing this year, that should be a clear indication that, yes, we’ve been looking at [Apex Legends] as one of our examples. The playoff format this year is almost an exact copy/paste of Apex season two.”
It’s unclear what the OWL will look like in 2024 and beyond, or what the future for these teams will look like, but Miller stressed that they are the “top priority” and that they want to “ensure that this transition, should it occur, happens in the best way possible.”
