Overwatch League Comes to a Close as Teams Vote on its Fate
By Katherine Duong
The Overwatch League (OWL), once the crown jewel of Activision Blizzard’s esports ventures, now finds itself at a critical juncture. In a move that surprised many, Activision Blizzard’s second-quarter earnings report revealed significant layoffs among its esports staff, hinting at major changes for OWL. Teams are now faced with a monumental decision: accept a new operating agreement or take a $6 million termination fee, essentially casting their vote on whether the league survives or shutters.
Financial Struggles and Industry Challenges
OWL’s financial woes have been no secret. Despite the fanfare at its inception, the league now contributes less than one percent to Activision Blizzard’s consolidated net revenues. The situation worsened last year when the company reportedly delayed $400 million in franchise fees for Overwatch and Call of Duty, largely due to the pandemic.
But it’s not just OWL feeling the pinch. The entire esports industry is navigating rough waters. Live stream views have nosedived from their pandemic highs, and shrinking ad budgets, as companies brace for a possible recession, are hitting where it hurts most—sponsorships. Venture Beat recently highlighted these struggles, suggesting many esports organizations might shut down teams, pivot away from esports, or slash their budgets.
The Potential Demise of OWL
Amid these financial and industry pressures, it seems likely that many OWL teams will take the buyout, signaling the league’s potential end. However, the league’s leadership hints at a possible evolution rather than a total shutdown. Commissioner Sean Miller has emphasized a commitment to keeping a competitive Overwatch scene alive. He pointed to this year’s playoffs format, inspired by Apex Legends, as a glimpse into the future.
“I want to be clear on one thing in particular,” Miller stated. “Overwatch remains committed to a competitive ecosystem in 2024 and beyond. We’re building towards a revitalized global scene that prioritizes players and fans.”
Uncertain Future for Teams and Employees
The exact future of OWL and its teams is still shrouded in uncertainty. While the league promises to prioritize players and fans, the recent wave of layoffs has sown doubt. Former employees, many of whom were dismissed without warning despite successful sponsorships and promotions, are understandably disillusioned.
One ex-employee expressed their frustration: “I can’t really fathom what the benefit is to lay people off when your company is posting record profits.”
As teams deliberate their vote, the esports community watches with bated breath. The decision will not only shape the future of competitive Overwatch but could also set the tone for other esports leagues grappling with similar challenges.
In these turbulent times, the fate of OWL hangs in the balance, a stark reminder of the volatility and high stakes in the world of professional gaming. However, it doesn’t mean that this could be the end of competitive Overwatch in its entirety.
Possible Futures for Overwatch and Its Competitive Scene
Looking ahead, the future of competitive Overwatch could take several forms, especially with Overwatch 2 on the horizon. A revitalized league structure might emerge, focusing on grassroots tournaments and community-driven events to reignite player and fan engagement. Alternatively, Blizzard might integrate more competitive features directly into Overwatch 2, fostering a robust in-game competitive ecosystem. This shift could see the professional scene becoming more decentralized, with a greater emphasis on regional competitions and online events, providing fresh opportunities for new talent and diverse gameplay experiences.
References:
‘Overwatch League Is Voting On Whether It Lives Or Dies’ By James Troughton https://www.thegamer.com/overwatch-2-league-future-live-die/
Is This The End Of The Overwatch League?