The Esports Advocate
Esports business news: deals, legal, and governance.
Documents
A Snapshot of the Layoffs Hitting Halo Developer 343 Industries
In January 2023, Microsoft initiated a broad workforce reduction affecting approximately 10,000 employees, or 5% of its global staff, which included significant personnel cuts within its Xbox Games Studios division.
- Microsoft announced a company-wide layoff of approximately 10,000 employees, representing 5% of its global workforce, which includes staff within its Xbox Games Studios division.
- At least 15 employees from the Halo developer 343 Industries publicly confirmed their departure following the January 2023 announcement.
- The layoffs at 343 Industries impacted various departments, including art, visual effects, software engineering, and quality assurance.
Team Vitality Partners With Streamcoi
Paris-based esports organization Team Vitality has entered into a partnership with Streamcoi to optimize the streaming operations of its professional players and content creators.
- Team Vitality has partnered with Streamcoi to automate the management and monetization of streaming activities for its players and network of nearly 60 content creators.
- The partnership aims to improve the visibility of Team Vitality’s commercial partners across streaming platforms, specifically Twitch and YouTube.
- Financial terms of the agreement between the Paris-based esports organization and the streaming platform were not disclosed.
Massive Layoffs Hit Microsoft and Unity
In January 2023, the technology and gaming sectors experienced significant workforce reductions as both Microsoft and Unity announced major restructuring plans.
- Microsoft is laying off 10,000 employees, representing approximately 5% of its global workforce, with the reductions to be completed by the end of its fiscal year 2023 third quarter.
- Unity is cutting between 284 and 300 jobs, marking its second round of layoffs since June 2022.
- Microsoft’s staff reductions are part of a broader cost-alignment strategy to match its cost structure with current revenue and customer demand.
Matt O’Brien is the New Chief Revenue Officer of 100 Thieves
The esports organization 100 Thieves has appointed Matt O’Brien as its new Chief Revenue Officer.
- Matt O’Brien has been appointed as the new Chief Revenue Officer of 100 Thieves, effective January 2023.
- O’Brien replaces Matty Lee, who served as CRO for over four years before being laid off in January 2023.
- O’Brien will maintain his existing role as Senior VP of global partnerships for the NBA’s Cleveland Cavaliers while serving as 100 Thieves' CRO.
Displate Named Official Partner of LEC
Displate has entered into an official partnership with the League of Legends EMEA Championship (LEC) for the 2023 season.
- Displate has entered into a partnership with the League of Legends EMEA Championship (LEC) for the 2023 season.
- The deal, facilitated by SPORTFIVE, involves the creation and public sale of metal posters featuring LEC teams and players.
- Displate will receive brand integration across the LEC global broadcast feed as well as regional broadcasts in France, Germany, and Spain.
NetEase vs. Activision Blizzard: Why NetEase Had to Refuse a Six-Month Extension
The breakdown of the 14-year partnership between NetEase and Activision Blizzard in early 2023 centered on a failed proposal to extend their distribution agreement by six months.
- NetEase refused a six-month contract extension proposed by Activision Blizzard in January 2023, effectively ending a 14-year distribution partnership for titles including World of Warcraft, Hearthstone, and Overwatch.
- NetEase had already disbanded its local operations team and laid off nearly 100 employees following the initial November 2022 announcement that the partnership would conclude on January 23, 2023.
- NetEase characterized the extension proposal as 'outrageous' and 'unseemly,' citing unfair conditions and noting that Activision Blizzard’s negotiations with other potential partners were based on three-year terms.
Riot Bullish on Valorant, Esports in India
Riot Games maintains a strong commitment to the Indian esports market, viewing the region as a critical component of its long-term expansion strategy.
- Riot Games is prioritizing the Indian market as a key region for future expansion, with plans to establish local offices to support the growing fan base and comply with proposed national online gaming regulations.
- Valorant viewership for the Valorant Champions Tour (VCT) grew significantly, reaching over 60 million total hours watched in 2022, up from 46 million the previous year.
- Riot Games selected Global Esports as a partnered team for the 2023 season, providing the organization with a six-figure stipend and non-relegation status to support local talent.
Mobile Legends: Bang Bang 4 World Championship Viewership Reaches 4.2M Peak Concurrent Users
The Mobile Legends: Bang Bang (MLBB) M4 World Championship, held in Jakarta, achieved a significant milestone in mobile esports viewership by reaching 4.2 million peak concurrent users (PCU).
- The Mobile Legends: Bang Bang (M4) World Championship reached 4.2 million peak concurrent users, ranking it among the top three esports competitions tracked by Esports Charts.
- Viewership data for the M4 World Championship excludes Mainland China, which is the world's largest esports market.
- Moonton Games announced that the M5 World Championship will be hosted in the Philippines in 2023.
French Government Lays Groundwork for National Esports Ecosystem
The French government has launched a strategic initiative to formalize and expand the nation’s esports ecosystem, aiming to bolster its position as a global hub for competitive gaming.
- The French government has launched a three-year national strategy to formalize the country's esports ecosystem, focusing on supporting both amateur and professional scenes while removing barriers to hosting major international events.
- A dedicated bid committee, including members from the French National Olympic and Sports Committee and the Paris 2024 Organizing Committee, is developing a proposal for an 'Olympic Esports Week' to coincide with the 2024 Olympic and Paralympic Games.
- Government ministries are collaborating with the industry association France Esports—which includes major publishers like Ubisoft, Riot Games, and Activision Blizzard—to map out regional synergies between esports and traditional sports clubs.
Four High-Profile Developers Left Tempo Storm in the Last Six Months
Tempo Storm, a California-based esports organization, has experienced a significant exodus of senior development talent tasked with creating its upcoming card-based strategy game, The Bazaar.
- Tempo Storm experienced a significant turnover of senior development talent between August and October 2022, losing three of the four high-profile industry veterans hired in 2021 to lead the development of their game, The Bazaar.
- Design Director Eric Flannum, Senior Game Designer Gregory Marques, and Senior Game Designer Stephen Dewhurst all departed the company in late 2022, leaving only COO Erin Krell from the original group of four key hires.
- Veteran game developer Troy Sheets, who joined Tempo Storm in December 2022, was laid off in January 2023 after only one month of employment.
eUnited Closes, More Layoffs at 100 Thieves
The esports industry experienced significant instability in mid-January 2023, characterized by organizational closures and workforce reductions.
- Los Angeles-based esports organization eUnited has officially ceased operations.
- 100 Thieves conducted a round of layoffs affecting approximately 30 employees.
- eStar Gaming and Victory Five have finalized their merger with the Ninjas in Pyjamas group.
eUnited Closed, Only CEO Remains
The Encino-based esports organization eUnited has effectively ceased operations, with all staff and competitive players departing by the end of 2022.
- Esports organization eUnited has effectively ceased operations, with all staff and players released by the end of 2022.
- Founder and CEO Adam Stein is the sole remaining individual associated with the company, as all other employees, including VP of esports Matthew “Burns” Potthoff, have departed.
- The organization conducted a series of layoffs starting in late August 2022, with remaining roles left unfilled before the final staff departures in December.