Activision Blizzard released its Fiscal Year 2023 Q2 results earlier this month, which indicates a murky future for the company’s esports efforts despite an otherwise financially successful quarter for Overwatch 2. A lucrative Diablo IV launch, increased revenue from various franchises, mobile growth, and more contributed to Activision Blizzard’s 50% increase in net bookings in the second quarter, from $1.64 billion to $2.46 billion. According to The Verge, despite that growth, Blizzard laid off around 50 employees in its esports department.
This round of layoffs was described by one laid off as a major gutting of Activision Blizzard’s esports division, while another said, “There wasn’t any warning.” All of us who were laid off were completely shocked by this, and we were not offered a chance to switch teams or roles.”
There might be a big shakeup to Activision Blizzard’s esports efforts later this year, but that will be determined by a vote by esports team owners. Here’s what the company’s financial results say:
“As previously disclosed, our collaborative arrangements for our professional esports leagues continue to face headwinds. During the second quarter, we amended certain terms of our collaborative arrangements with team entities participating in the Overwatch League. According to the amended terms, following the conclusion of the current Overwatch League season, the teams will vote on an updated operating agreement. If the teams do not vote to continue under an updated operating agreement, a termination fee of $6 million will be payable to each participating team entity (total fee of approximately $114 million). As of June 30, 2023, a termination liability has not been accrued. Total revenues from the Overwatch League comprise less than 1% of our consolidated net revenues.”
