Activision Blizzard is no longer confident in the viability of professional esports leagues for Call of Duty and Overwatch. This became known from the company’s report sent to the US Securities Commission.
According to the text of the document, despite the successful development of gaming franchises in general, the popularity of professional tournaments in the Call of Duty League and Overwatch League series is falling. The company notes that with the current financial models, the leagues only bring losses to Activision Blizzard. The developers have developed a plan of measures to correct the situation, which will require additional financial investments – while all attempts to save the esports leagues may be in vain.
The Call of Duty League and Overwatch League operate on similar business models. To participate in the franchise, teams must pay a fee that reaches tens of millions of dollars. As in many traditional sports, teams represent not just a club, but a certain city.
In January 2023, Overwatch League members demanded compensation from Blizzard due to the poor financial situation of the professional scene. Many clubs complained about the lack of revenue, exacerbated by restrictions on advertising and high operating costs – the organizations found themselves owing developers $ 6-7 million per team.
