Microsoft’s acquisition of gaming company Activision Blizzard may be off to an expensive start with the tech giant likely to foot the $120 million bill for the dissolution of the Overwatch League—should the vote to shut down the league be passed.
First reported in July 2023 following a spate of layoffs at the company and uncertainty over the league’s future, Blizzard opted to allow the 20 OWL team owners to vote on an updated operating agreement.
However, after conferring with organizations through the previous months, each and every team is set to discontinue participation, according to journalist Jacob Wolf in a Nov. 3 report.
The result of such a vote? Each franchise that opts out of Blizzard’s plans to continue the OWL will receive a $6 million termination payout, and while it won’t cover what each team laid out to enter and stay in the league, it’s proving to be too sweet of a deal to pass up.
The vote’s result, expected in the coming weeks, comes a month after Microsoft’s $68.7 billion acquisition of Activision Blizzard was finally greenlit after months of negotiations stalled the purchase of the company.
Activision Blizzard had already waived the bulk of the remaining franchise fees teams still owed in June, which softened the economic blow significantly. Nevertheless, it’s a sad and sorry end to Overwatch esports as we know it, for now.
The COVID-19 pandemic and the frosty reception to Overwatch 2 proved the final nails in the coffin for the OWL, which had been in steady decline since its inception in 2017. Between sharp drop-offs in viewership, the departure of major sponsors, an expansion into gambling and alcohol advertisement, and anger from teams who invested millions for little gain, the OWL in its current form has not satisfied any relevant party.
At the very least, Overwatch’s current era went out with a bang as 318,780 tuned in to watch Saudi Arabia shock China in the Overwatch World Cup grand final, according to viewership stats site Esports Charts. It’s the highest peak for an OWWC since 2017, indicating interest in the esport is still high and that, with the right management, Overwatch esports can still survive.
Microsoft and Activision Blizzard are in talks with several interested parties to open the Overwatch esports scene up in 2024, with the Saudi-backed ESL FACEIT Group early frontrunners to take the reins for the next era of pro Overwatch 2.
