Is the Overwatch League in trouble?
following revelations of widespread discrimination and sexual harassment at Activision Blizzard. Five years after the start of the Overwatch League's first season, it still hasn't fully recovered from the up-ending: Sponsors haven't returned, and full-time city-based gameplay remains a distant dream.In a Form 10-Q filing with the SEC made on May 4, Activision Blizzard acknowledged that the headaches are starting to pile up.
"Our collaborative arrangements for our professional esports leagues continue to face headwinds which are negatively impacting the operations and, potentially, the longevity of the leagues under the current business model," the filing says."We continue to work to address these challenges, which could result in significant costs, and such efforts may prove unsuccessful."
That's a long way from throwing in the towel on the whole thing, and in fact Overwatch League head Sean Miller toldthat Activision Blizzard remains"committed to Overwatch esports and growing a community," and that it's"not going away anytime soon." It's also worth noting that, generally speaking, securities filings like this are obligated to cover all the bases, even relatively remote possibilities that aren't likely to occur.
But the Overwatch League is facing very real challenges. The release of Overwatch 2 helped restore interest in the league after a couple years of flagging audience numbers, but it remains to be seen how long that will hold up. In the meantime, Activision is waiting to be paid as much as
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