There are concerns that Activision Blizzard may be preparing for a mass exodus, pulling firmly out of the world of esports. These fears come following a wave of layoffs and targeted activity that suggests certain esports leagues that the firm operates are being shut down. It seems that around fifty employees have been impacted thus far, but it’s speculated that there are more dismissals on the horizon as things potentially continue to ramp down.

In the last week alone, we’ve seen an attempted buyout of all teams ahead of a ‘restructuring’ of the Overwatch League. We’ve seen entire teams laid off from within the Call of Duty League ecosystem. It’s making for an uncertain future, particularly amidst the Microsoft x Activision Blizzard acquisition and the knowledge that some Call of Duty League organisations are struggling more than ever to make money.

Could Activision Blizzard Leave Esports For Good?

The CDL season that just wrapped up was the most popular one ever (Image Credit: CDL)

Last year, it was revealed that Activision Blizzard was still yet to collect as much as $400 million in franchise fees across both the CDL and the OWL. It reached a point of desperation during the COVID-19 pandemic, and many of these fees were waived as Activision Blizzard recognised the financial strain poured onto these organisations.

It was just days ago that a massive buyout plan was revealed for the Overwatch League. It was reported that a $6 million blanket buyout was being arranged for every team in the Overwatch League not willing to accept restructuring – which is a landmark concept. This news came following a downturn in Overwatch’s popularity and a drop in viewership. It seems that leadership remains optimistic despite this concerning activity.

In a statement, the Overwatch League Commissioner, Sean Miller, said:

‘I want to be clear on one thing in particular, that Overwatch remains committed to a competitive ecosystem in 2024 and beyond, and we’re building toward a revitalized global scene that prioritizes players and fans.’

Behind The Scenes

However, the sentiment of those being laid off doesn’t reflect what Miller is saying. As contracts were severed, the secrets began leeching out from within the Activision Blizzard ecosystem. In one statement, a former employee talked about the shock value of the sudden dismissal, suggesting that it made no sense because Call of Duty in particular was seeing record-high viewership levels and sponsorship deals were rolling in.

It didn’t end there – this former employee spoke very frankly about the future of Activision Blizzard’s esports ecosystem. This quote came following a discussion about a tool that was being developed to ‘run tournaments’:

‘As far as I know, that tool is still planned to be terminated in the coming weeks, and our replacement wasn’t finished, so I can only speculate that Activision Blizzard is closing its esports division. They may be able to keep a skeleton crew on to close out the OWL and the World Series of Warzone seasons in the next few months, but in my eyes, they are completely unequipped to internally support anything esports after that.’

If true, this could have drastic ramifications for the esports industry at large. It doesn’t make sense that we’d see a complete disappearance of Call of Duty League esports, but it could be a spanner in the works for the short term, at least. After all, it wasn’t always a scene that was backed by Activision Blizzard.

This story continues to develop – stay tuned.