Potential Losses: Microsoft Faces Billions in Fallout from Overwatch League Shutdown
Reports suggest that the Overwatch League may be facing imminent closure, posing a potential financial blow to Microsoft estimated at over $100 million
Article Key Points
According to a report, if the Overwatch League were to be shut down, Microsoft could potentially face a loss of over $100 million. Activision Blizzard is currently seeking a vote from teams regarding the league's future.
Rumors suggest that most teams are in favor of terminating the Overwatch League, with each team anticipated to receive $6 million in compensation if the decision to discontinue it is made.
According to reports, Activision Blizzard is making arrangements to collaborate with ESL FACEIT Group to oversee the 2024 Overwatch 2 esports season, which may result in the departure of the Overwatch League.
Microsoft could potentially face a loss of over $100 million due to the shutdown of the Overwatch League, according to a report. Several years ago, Blizzard revolutionized esports by launching the highly competitive Overwatch League, captivating fans of Overwatch and later Overwatch 2 with top-tier matches.
In late 2017, the Overwatch League commenced its inaugural season, featuring 12 teams. The following year, the league expanded to include 20 teams, while the regular season was shortened from 48 to 23 games. However, the league endured significant setbacks in its third season due to the COVID-19 pandemic. This resulted in match cancellations, rescheduling, and the transition to an online format. In spite of the challenges posed by the pandemic, the Overwatch League has successfully completed three additional seasons. Nevertheless, the future of the Overwatch League, despite its global recognition as one of the most prestigious esports leagues, appears uncertain. This forthcoming decision could potentially burden Microsoft with substantial financial repercussions.
According to the Jacob Wolf Report, Microsoft could potentially face a loss of more than $100 million due to the shutdown of the Overwatch League. The report reveals that Activision Blizzard approached the league's 20 teams with a proposition regarding the future of Overwatch 2 esports. The teams were asked to vote on whether to continue or discontinue the Overwatch League. In the event of a decision to end the league, each team would receive $6 million as compensation, amounting to a total of $120 million. While the teams' final decision is still awaited by Activision Blizzard, rumors suggest that the majority will vote in favor of discontinuing the Overwatch League. Although most teams may choose to withdraw from esports entirely, there will still be a few participants who will stay and wait for the uncertain future of the Overwatch 2 esports system.
Plans for the new Overwatch League are still undecided, but there are preparations underway for the 2024 Overwatch 2 esports season. Activision Blizzard is currently working on a contract with ESL FACEIT Group to manage the season. Last year, Savvy Gaming Group acquired ESL and FACEIT, known for their successful tournaments in games like Counter-Strike: Global Offensive, Dota 2, and Rainbow Six Siege. Activision Blizzard has been seeking proposals to oversee the new system, and it is expected that ESL FACEIT Group will come out as the preferred choice, signaling the potential end of the Overwatch League.
As the Overwatch League's future hangs in the balance, players of Overwatch 2 have concerns about the fate of the Overwatch League skins. The community eagerly awaits news regarding what will happen to these skins if the league dissolves. Additionally, fans of Overwatch 2 who witnessed the Overwatch 2 World Cup at BlizzCon 2023 anxiously await updates on the future of the Overwatch League.
Overwatch 2 is a team-based first-person shooter developed by Blizzard. It offers a free-to-play experience and introduces exciting new heroes such as Junker Queen and Sojourn, while also bringing back beloved fan-favorites.
Platform(s) PS4, PS5, Xbox One, Switch, Xbox One S, Xbox One X, PCReleased October 4, 2022Developer(s) BlizzardFranchise OverwatchPublisher(s) Blizzard
Editor's P/S
As an enthusiastic fan of the Overwatch League, I am deeply saddened by the potential closure of the league. The Overwatch League has provided me with countless hours of entertainment and excitement, and I have made many friends through my involvement in the community.
The potential financial losses that Microsoft could face are significant, but the loss of the league would be an even greater blow to the esports community. The Overwatch League is one of the most prestigious esports leagues in the world, and its closure would leave a huge void in the competitive gaming landscape. I urge Microsoft and Activision Blizzard to do everything they can to save the Overwatch League. The league has a bright future, and I believe that it can overcome its current challenges.
