The Esports Advocate
Esports business news: deals, legal, and governance.
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Activision Blizzard Games Going Offline: China
As of January 24, 2023, Activision Blizzard ceased operations for several major titles in China, including World of Warcraft, Hearthstone, StarCraft, and Overwatch 2.
- As of January 24, 2023, Activision Blizzard games including World of Warcraft, Hearthstone, Overwatch 2, and StarCraft have gone offline in China due to the expiration of the company's 14-year partnership with NetEase.
- Because NetEase held the official government-mandated game approvals, the termination of the partnership effectively stripped the titles of their legal authorization to operate in the Chinese market.
- Any potential return of these titles to the Chinese market requires new government approval, a process that industry estimates suggest could take between six months and two years.
Why the Fight Between NetEase and Activision Blizzard Matters to Esports
The breakdown of the partnership between Activision Blizzard and its Chinese distributor, NetEase, represents a significant disruption to the esports landscape in China.
- The partnership between Activision Blizzard and NetEase has collapsed, resulting in the termination of distribution services for major titles like World of Warcraft, Diablo, and Overwatch in China.
- The loss of the distribution deal renders Activision Blizzard games effectively illegal to operate in China due to the country's strict game approval requirements, potentially barring access for months or years.
- The Overwatch League (OWL) faces significant operational disruption, as teams including the Chengdu Hunters, Guangzhou Charge, Hangzhou Spark, and Shanghai Dragons lose their home-region viability.
People on the Move: Jan. 21, 2023
The industry update for January 21, 2023, serves as a comprehensive digest of executive appointments, departures, and legal developments within the global esports and gaming sectors.
- Alban Dechelotte has been appointed as the permanent CEO of G2 Esports, transitioning from his previous interim role.
- Matt O’Brien, currently the senior VP of global partnerships for the Cleveland Cavaliers, has been named the new chief revenue officer of 100 Thieves.
- Former Esports Entertainment Group CEO Grant Johnson has filed a lawsuit against the company, seeking $3.1 million in damages for breach of contract.
LEC Season Finals to be Held in Montpellier, France
The League of Legends EMEA Championship (LEC) has announced that its 2023 season finals will take place in Montpellier, France.
- The League of Legends EMEA Championship (LEC) will host its 2023 season finals at the Arena Montpellier in Montpellier, France.
- Arena Montpellier has a seating capacity ranging from 10,000 to 14,000 spectators depending on the event configuration.
- The 2023 LEC format has been updated to feature a single season final that serves as a qualifier for the League of Legends World Championship.
Kia Signs on for Another Year as an LEC Partner
The League of Legends EMEA Championship (LEC) has renewed its partnership with automobile manufacturer Kia for the 2023 season.
- Kia has renewed its partnership with the League of Legends EMEA Championship (LEC) for the 2023 season, marking the fifth consecutive year of collaboration.
- Kia remains the league's official main automotive partner, a role it has held since the LEC's rebranding in 2018.
- The partnership includes continued sponsorship of the weekly 'Mic Check' content series and the provision of in-game giveaways for viewers.
A Fresh Round of Layoffs Hit Team Liquid
Team Liquid initiated a new round of staff reductions in January 2023, marking the second such event for the organization following a smaller round of cuts in September 2022.
- Team Liquid initiated a round of layoffs on January 20, 2023, marking the company's second reduction in force following a smaller round in September 2022.
- While the exact scale and scope of the layoffs remain undisclosed, at least three employees were confirmed to have been let go.
- The organization maintains a global headcount estimated between 51 and 100 employees and currently has 13 active job listings across Brazil, the Netherlands, Los Angeles, and Berlin.
Esports Stadium Arlington to Host CECC Texas Finals
Collegiate Sports Management Group and ESPORTSU have announced that the OpTic Gaming-owned Esports Stadium Arlington in Texas will host the Collegiate Esports Commissioner’s Cup (CECC) Texas Finals.
- Esports Stadium Arlington, owned by OpTic Gaming, will host the Collegiate Esports Commissioner’s Cup (CECC) Texas Finals from May 6–7, 2023.
- The event will feature 64 collegiate teams from across the United States competing in Super Smash Bros. Ultimate, Overwatch 2, Rocket League, and Valorant.
- The tournament schedule begins with a May 5 red carpet ceremony and media day, followed by qualifying rounds on May 6 and finals on May 7.
G2 Esports Names Alban Dechelotte Permanent CEO
G2 Esports, a Berlin-based esports organization, has formalized its executive leadership team by appointing Alban Dechelotte as permanent chief executive officer.
- G2 Esports has appointed Alban Dechelotte as permanent CEO, following his tenure as interim CEO since the September 2022 resignation of founder Carlos ‘Ocelote’ Rodriguez.
- Sabrina Ratih has been appointed as the new Chief Operating Officer of G2 Esports, joining the organization after a seven-year executive tenure at Red Bull Media House.
- Philippe Adam has been officially confirmed as the Chief Financial Officer of G2 Esports, a role he has held since joining the company in June 2022.
Nerd Street Gamers Cuts Staff by 25 Percent
Nerd Street Gamers, a Philadelphia-based esports facilities and events company, implemented a 25 percent reduction in its workforce in January 2023.
- Nerd Street Gamers laid off 25% of its workforce in January 2023.
- The company has faced recent financial challenges, including reports of difficulty paying participants for Riot Games-sanctioned Valorant competitions held in late 2022.
- CEO John Fazio stated in January 2023 that the company was working to clear a backlog of payments to staff and tournament prize winners.
Blizzard Presents Scaled-Down Hearthstone Esports Plans for 2023
Blizzard Entertainment’s 2023 esports strategy for Hearthstone marks a significant contraction in the game’s competitive ecosystem.
- Blizzard Entertainment has significantly reduced its 2023 Hearthstone esports program, cutting the total prize pool to $650,000 from $3 million in 2022 and $2.22 million in 2021.
- The 2023 season will feature only seven total events, down from 12 events in 2022.
- Chinese player participation and viewership have been removed from the 2023 season due to the termination of the distribution agreement between Activision Blizzard and NetEase.
Riot Confirms Layoffs, 46 Jobs Cut
Riot Games confirmed a workforce reduction in January 2023, resulting in the elimination of 46 positions.
- Riot Games confirmed the elimination of 46 positions across the company as of January 19, 2023.
- The layoffs were described by the company as a strategic shift to sharpen focus and improve content delivery.
- Riot Games characterized the job cuts as a normal course of business rather than a response to broader industry downturns.
FaZe Clan Partners With Porsche in Multi-Year Deal
FaZe Holdings and the German luxury automotive manufacturer Porsche AG have entered into a multi-year partnership, marking a significant expansion of the esports organization’s brand portfolio.
- FaZe Holdings and Porsche AG have entered into a multi-year partnership, with the deal brokered by the talent agency UTA.
- Porsche will serve as the official partner for all of FaZe Clan’s current esports teams.
- The collaboration includes the production of a content series featuring key FaZe Clan members sharing success stories while promoting Porsche’s luxury vehicle line.