The $68.7 billion deal between Microsoft and Activision Blizzard has taken the entire internet by storm. After the announcement, several PlayStation users were wondering if they will lose access to Call of Duty titles. Although Xbox Head assured fans not to be worried, Activision Blizzard has released another upsetting news for the fanbase.
The news reveals that Activision Blizzard’s Overwatch and Call of Duty pro leagues could be in serious trouble. Activision has raised some concern over the fan-favorite eSports league’s longevity. The company has reported that both leagues are facing troublesome challenges in its latest filing(opens in new tab) with the US Securities and Exchange Commission.
Activision isn’t sure about the longevity of Overwatch and Call of Duty Leagues
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Both Call of Duty and Overwatch pro-Leagues are one of the most popular eSports championship tournaments in the community. It has an enormous fanbase and Activision’s latest report has naturally upset several fans.
Overwatch League was announced back in 2016. Despite having an immense fanbase, the league faced several challenges since the beginning. Shortly after its launch, roughly 50 employees were let go because of the league’s live eSports events during the Covid-19 pandemic. Furthermore, major sponsors began pulling out following the ongoing controversies on Activision.
Therefore, it’s not the first time that Activision has faced severe consequences regarding the fate of its favorite franchises. 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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“Our collaborative arrangements for our professional esports leagues (i.e., the Overwatch League and the Call of Duty League) 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.”
Activision have admitted to concerns over the longevity of the current business model of the Call of Duty League and Overwatch League, and that efforts to address their challenges "may prove unsuccessful." pic.twitter.com/YU1ELD2yVK
— Jacob Hale (@JakeHaleee) May 5, 2023
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Despite Activision’s latest announcement on COD and Overwatch’s future, fans are not shaken up a bit. It’s worth also noting that securities filings like this are obligated to cover all the bases, even relatively remote possibilities that aren’t likely to occur. Therefore, it’s better to expect the end of COD and Overwatch League with just a pinch of salt.
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