Earlier this year, Activision Blizzard laid off around 50 people and announced that after the current Overwatch League season ended, teams would have to agree to updated, amended agreement terms in order to continue operating or take a $6 million cancellation fee. Now, the Overwatch League days are over.
The company confirmed that they will be moving on from the Overwatch League in a statement shared by GGRecon:
“We are transitioning from the Overwatch League and evolving competitive Overwatch in a new direction. We are grateful to everyone who made OWL possible and remain focused on building our vision of a revitalized esports program. We are excited to share details with you all in the near future.”
Since Activision Blizzard set the terms for continuation back in July, the teams were required to either accept the new terms or decline participation, exit OWL and take a $6 million cancellation fee. The Toronto Defiant is one such team that opted for the cash.
Breaking: TEA has learned that a majority of team owners have voted to exit the @overwatchleague in its current state (a franchised league) and take a $6M USD payout.?@jfudgehttps://t.co/RPyHDEukcP
— The Esports Advocate (@TEAdvocated) November 8, 2023
Recently, journalist Jacob Wolf reported that the OWL would be dead soon, and that Activision Blizzard could be preparing to partner with a Saudi Arabian company, ESL FACEIT to run a new format season in 2024. This is a state-owned esports company that is flush enough with cash to take on what has been an expensive esports operation.
Offering $6 million to each team to walk away was no joke, considering that teams spent more than that on average in operating costs and franchise fees alone.
Still, there is no official word just yet, as the Activision Blizzard statement indicated. We’ll have to wait and see just what competitive Overwatch looks like in 2024.
