Activision Blizzard, Inc. (NASDAQ:ATVI) had ambitious plans to introduce a well-capitalized league around the Overwatch title but those plans might not go as planned considering that the game’s professional scene is shrinking.
Activision Blizzard hit a home run with Overwatch, one of the most successful games that the company has ever developed. However, that bright frame seems to be slowly dimming because roughly five major e-sports franchises have done away their Overwatch teams. Most of these teams were disbanded due to the fact that there were no opportunities to make money. This took place less than a month after Brandon “Seagull” Larned quit NRG Esports’ team so that he could focus on a more lucrative venture.
“It was our third-most-expensive team to operate, yet it was one of our lowest drivers of revenue, and I’m sure that’s true for many of the teams,” pointed out Marty Strenczewilk, the President and Chief Executive of Splyce.
Activision Blizzard may be risking too much by focusing on Overwatch League
According to reports, major teams such as Denial Esports, CompLexity Gaming and Red Reserve have disbanded over the fact that there is a very poor fanbase in Europe. Numerous other publishers have been successful at making titles that attract a spectator fan base and teams that grow continually over time. Activision Blizzard made its announcement for an Overwatch league in November last year, which was six months after the launch of the game.
Unfortunately, there has behave en very few Overwatch events, thus making it hard to build an audience. China and Korea are the only countries that have well-established Overwatch leagues. E-Sport analysts claim that the diminishing interest in field competitive teams is one of the biggest reasons why Overwatch League having a hard time trying to succeed after launch.
Immortals CEO Noah Winston however believes that Activision Blizzard is taking a top-down structureapproach. He believes that the company’s main priority with Overwatch is to reorganize the teams as key parts of the ecosystem while building long-term partnerships with the teams. He also added that the cloud of speculation on Overwatch could be one of the reasons why teams are disbanding.
Activision Blizzard stock closed the latest trading session on Tuesday at $56.78.