Activision isn't sure how long the Overwatch League and CoD League will last, says efforts to address challenges 'may prove unsuccessful'
It looks like Activision Blizzard's Overwatch and Call of Duty pro leagues could be in trouble. In a new filing(opens in new tab) with the US Securities and Exchange Commission, the company said that both leagues are facing challenges that could undermine their long-term viability, and it's not sure if it will be able to address them.
The Overwatch League was a bold initiative when it was announced in 2016: A league of city-based teams that would compete across seasons in home-and-away matches, leading into playoffs and a championship. Basically the same as a conventional sports league, in other words, and with comparably steep buy-in costs that made it tough to sign franchises(opens in new tab).
The league was faced with an even greater challenge shortly after it launched—adn before it properly found its footing—when the third season was derailed by the Covid-19 pandemic(opens in new tab), which eventually led to roughly 50 employees being let go because of the league's reduced focus on live esports events(opens in new tab). Things got even worse later in 2021, when major sponsors began pulling out 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.
(The Call of Duty League debuted a couple years after the Overwatch League, in 2019, but was played on PlayStation 4 consoles until 2021(opens in new tab).)
In a Form 10-Q filing with the SEC made on May 4, Activision Blizzard acknowledged that the headaches are starting to pile up.
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