Gaming News

The Overwatch and Call of Duty Pro Leagues May Be in Trouble

Activision isn’t sure how long the pro leagues for these games will last.

In various previous stories, I have spoken about Overwatch as well as Call of Duty. These will be linked at the end of this post. In this post, I will talk about the Overwatch and Call of Duty pro leagues and explain why they might be in trouble.

What is Overwatch League?

The Overwatch League (OWL) is a professional esports league dedicated to the popular team-based first-person shooter game Overwatch. Launched in 2018 by Blizzard Entertainment, the league has become one of the world’s most prominent and competitive esports leagues.

With a structure and format resembling traditional sports leagues, the Overwatch League brings together top-tier teams from around the globe to compete for the championship title.

The Overwatch League features teams representing major cities from North America, Europe, Asia, and the Pacific region. Each team consists of professional players who are recruited through a combination of open tryouts, scouting, and transfers.

Various organizations own and operate the teams, including traditional sports teams, esports organizations, and prominent investors.

The league is divided into two divisions: the Atlantic Division and the Pacific Division. Teams compete against each other in regular season matches, which take place in a specially designed arena known as the Overwatch League Arena.

The arena provides a state-of-the-art stage for the players, with high-quality production, immersive visual effects, and live audiences. Matches are broadcasted globally, reaching millions of viewers through online streaming platforms.

The regular season comprises several stages, each lasting a few weeks. During these stages, teams play matches to accumulate wins and improve their overall standings.

The teams are ranked based on their win-loss records, and the top teams from each division advance to the playoffs. The playoffs consist of a double-elimination tournament where teams compete for a chance to win the championship.

The Overwatch League also implements various innovative features to enhance the viewing experience and engage with fans.

One such feature is the “Homestand Weekend,” where teams host matches in their home cities, allowing fans to attend live events and cheer for their favorite teams. This unique concept brings the excitement and energy of traditional sports to esports.

In addition to the regular season and playoffs, the Overwatch League hosts the All-Star Weekend, where the most skilled players from each division showcase their talents in a series of exhibition matches.

This event not only celebrates the players’ individual skills but also serves as a platform for fans to interact with their favorite players.

The Overwatch League’s success can be attributed to its combination of high-quality gameplay, skilled players, engaging storylines, and meticulous production value.

It has attracted a passionate and dedicated fanbase, as well as the attention of major sponsors and investors. The league has paved the way for the professionalization of esports and has helped legitimize it as a mainstream form of entertainment.

What is Call of Duty League?

The Call of Duty League (CDL) is a professional esports league dedicated to the popular first-person shooter video game, Call of Duty. It was launched in 2020 and is operated by Activision Blizzard, the Call of Duty series publisher.

The league brings together top-tier teams worldwide to compete in a structured and highly competitive environment.

The Call of Duty League features a city-based franchise system, similar to the Overwatch League. Teams represent major cities in North America and Europe, and each team is owned and operated by various organizations, including traditional sports teams, esports organizations, and prominent investors.

This city-based approach allows regional rivalries and a sense of local pride, similar to traditional sports leagues.

Teams in the Call of Duty League are composed of professional players recruited through tryouts, scouting, and transfers. The league operates annually, with a regular season, playoffs, and a championship event.

The regular season consists of several tournaments and events where teams compete to earn points and improve their standings.

Matches in the Call of Duty League are played in a five-versus-five format, with teams facing off in different game modes and maps. The league follows the current iteration of the Call of Duty game as its primary competitive title.

Each year, a new Call of Duty game is released, and the league transitions to the latest version, ensuring fresh gameplay and excitement for players and fans alike.

The Call of Duty League strongly focuses on providing viewers with an engaging and immersive experience. Matches are broadcasted globally, with high-quality production value and commentary.

The league embraces various production elements, including live audience participation, expert analysis, and player interviews, to enhance the viewing experience and create a sense of community among fans.

In addition to the regular season, the Call of Duty League features playoffs and a championship event. The top teams from the regular season advance to the playoffs, where they compete in a bracket-style tournament to determine the champion.

The championship event serves as the culmination of the season, featuring the best teams battling it out for the ultimate title.

The Call of Duty League has quickly established itself as one of the premier esports leagues, attracting a dedicated fanbase and significant investment.

The league’s partnership with major sponsors, media outlets, and broadcasters has helped elevate the visibility of Call of Duty as an esports title. It has also fostered a pathway for aspiring players to compete at the highest level and pursue a professional career in esports.

What’s going on with the pro leagues?

According to a recent filing with the US Securities and Exchange Commission (SEC), Activision Blizzard’s Overwatch and Call of Duty pro leagues are facing significant challenges that could threaten their long-term viability, according to a recent filing with the US Securities and Exchange Commission (SEC).

The company expressed uncertainty about its ability to address these challenges and ensure the success of both leagues.

The Overwatch League was introduced in 2016 as an ambitious endeavor, featuring city-based teams competing in home-and-away matches, leading to playoffs and a championship.

This structure mirrored traditional sports leagues, but the Overwatch League had notably high buy-in costs for franchises, making it challenging to secure team owners.

Shortly after its launch, the league encountered an even greater obstacle when the COVID-19 pandemic hit, disrupting the third season and reducing the focus on live esports events.

As a result, approximately 50 employees were let go. The situation worsened in 2021 when major sponsors started withdrawing their support due to revelations of widespread discrimination and sexual harassment within Activision Blizzard.

Even five years after its inception, the Overwatch League still strugglesto fully recover from these setbacks. Sponsors have yet to return and the realization of full-time city-based gameplay remains elusive.

The Call of Duty League, which debuted in 2019, faced similar challenges, although it played exclusively on PlayStation 4 consoles until 2021.

In the Form 10-Q filing submitted to the SEC on May 4, Activision Blizzard acknowledged the mounting difficulties its professional esports leagues faced. The company admitted that the challenges negatively impactedthe leagues’ operations and longevity under the current business model.

Activision Blizzard emphasized its commitment to addressing these challenges but cautioned that significant costs may be incurred, and success is not guaranteed.

While the filing’s language indicates potential risks, it does not suggest that Activision Blizzard is entirely giving up on the leagues. Overwatch League head Sean Miller reassured the community that the company remains committed to Overwatch esports and its growth.

However, it is important to note that filings like this often cover all possible scenarios, including remote possibilities that are unlikely to occur.

Nonetheless, the Overwatch League is unquestionably confronting real obstacles. Overwatch 2 helped revive interest in the league after declining viewership, but it remains uncertain how long this boost will be sustained.

Additionally, Activision Blizzard is awaiting deferred fees of up to $420 million from Overwatch and Call of Duty League teams. Furthermore, Blizzard lacks a publishing partner in China, preventing accessibility to Overwatch 2 in that massive market.

This poses a significant problem since four of the Overwatch League’s 20 teams are based in China. Recent reports suggest that the Chengdu Hunters have disbanded, further indicating the challenges faced by the league.

The optimism and confidence of 2017, when the Overwatch League seemed poised to usher in the mainstreaming of esports, now feels like a distant memory.

Final Words & Takeaways

In a recent filing with the US Securities and Exchange Commission (SEC), Activision Blizzard expressed concerns about the future of its Overwatch and Call of Duty pro leagues.

The Overwatch League, launched in 2018, has faced setbacks, including high buy-in costs for franchises, disruptions caused by the COVID-19 pandemic, and the withdrawal of major sponsors due to allegations of discrimination and harassment within Activision Blizzard.

The Call of Duty League debuted in 2019 has encountered similar challenges.

In the filing, Activision Blizzard acknowledged these challenges’ negative impacton the leagues’ operations and longevity.

While the company stated its commitment to addressing these issues, it highlighted the potential for high costs and emphasized that success is not guaranteed.

The Overwatch League, in particular, is facing obstacles such as declining viewership, deferred fees from teams, and a lack of accessibility in the Chinese market.

The future of both leagues remains uncertain, despite previous optimism about their mainstream success.

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With that being said, thank you for reading my post, and have a good one.

Here are a few of my previous stories relating to Call of Duty and Overwatch:

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