The Esports Advocate
Esports business news: deals, legal, and governance.
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Layoffs Hit Evil Geniuses
In December 2022, the Washington-based esports organization Evil Geniuses implemented a round of staff layoffs. The reductions primarily impacted the company’s marketing department and content creation teams.
- Esports organization Evil Geniuses conducted a round of layoffs in December 2022, primarily impacting its content creation and marketing departments.
- While the exact number of affected employees remains unconfirmed, social media reports from former staff indicate the cuts reached double digits.
- Evil Geniuses is owned by the private investment and technology firm PEAK6, which acquired the organization in May 2019.
Epic Games Agrees to Pay FTC $520M to Settle Fortnite-Related COPPA Violations
Epic Games reached a $520 million settlement with the Federal Trade Commission in December 2022 to resolve two civil complaints regarding its flagship title, Fortnite.
- Epic Games agreed to a $520 million settlement with the Federal Trade Commission (FTC) to resolve allegations of COPPA violations and deceptive billing practices in Fortnite.
- The settlement is divided into two parts: $275 million to address violations of the Children’s Online Privacy Protection Act (COPPA) and $245 million for consumer refunds.
- The FTC alleged that Epic Games collected personal information from players under 13 without parental consent and enabled real-time voice and text chat by default for children and teens.
Joseph Ziegler Leaves Riot Games to Join Bungie
Joseph Ziegler, a veteran game director, has transitioned from Riot Games to Bungie, a studio owned by Sony Interactive Entertainment.
- Joseph Ziegler has joined Bungie as a game director following his departure from Riot Games in December 2022.
- Ziegler spent over 12 years at Riot Games, most recently serving as the senior game director for the shooter title Valorant.
- While his specific responsibilities at Bungie remain unconfirmed, his new role is expected to involve the studio's primary IP, Destiny.
One Legend Enters, Another One Leaves
The gaming and esports industry experienced significant leadership shifts during the week ending December 17, 2022, characterized by the return of veteran talent to established studios and the departure of high-profile figures from emerging technology sectors.
- John Carmack has officially resigned from his advisory role at Meta, citing fundamental disagreements with leadership regarding the company's VR and metaverse strategy.
- Riot Games has hired former Disney executive Cristina Fiumara as the new global head of animation content development to lead their film and TV initiatives.
- Chris Metzen has returned to Blizzard Entertainment as a creative advisor to help shape the future of the World of Warcraft franchise and other major intellectual properties.
ReKTGlobal Owner Infinite Reality Plans Nasdaq Listing in Early 2023
Metaverse company Infinite Reality announced plans to become a publicly traded entity in early 2023 through a definitive business combination agreement with the Nasdaq-listed special purpose acquisition company (SPAC) Newbury Street Acquisition Corporation.
- Metaverse company Infinite Reality plans to go public in Q1 2023 through a merger with the Nasdaq-listed SPAC, Newbury Street Acquisition Corporation (NBST).
- The merger is projected to generate $128 million in proceeds and establish a combined company with an equity value of $1.85 billion.
- Upon completion of the deal, the SPAC will be renamed Infinite Reality, Inc., with its stock, warrants, and units expected to trade on the Nasdaq.
Team Liquid Issues Statement on Competing in Middle East Events
Team Liquid has formally addressed its participation in esports tournaments held in the Middle East, specifically those organized by ESL FACEIT Group and BLAST.
- Team Liquid will continue participating in ESL and BLAST events in the Middle East, citing that a boycott could force the organization to exit certain esports titles entirely.
- The organization is donating 50% of its prize money share from recent Saudi Arabian events and the upcoming BLAST World Finals to Rainbow Railroad, totaling $22,500 for the initial donation.
- Team Liquid is actively negotiating with ESL and Louvre teams to secure safety guarantees for all staff and players, regardless of gender or identity, while also pushing for the protection of player data.
Valve Boss Gabe Newell Weighs in on Activision Blizzard Buyout
Valve CEO Gabe Newell has publicly expressed confidence in Microsoft’s commitment to maintaining the availability of the Call of Duty franchise on the Steam platform, regardless of the outcome of the proposed $69 billion acquisition of Activision Blizzard.
- Valve CEO Gabe Newell stated that a formal long-term agreement to keep Call of Duty on Steam was unnecessary because he trusts Microsoft’s commitment to the platform.
- Newell emphasized that Microsoft has a clear business motivation to keep Call of Duty available on all popular platforms and devices where customers want to play.
- Microsoft publicly offered 10-year commitments to keep Call of Duty on Nintendo and Valve’s Steam platform as part of its efforts to secure regulatory approval for the $69 billion acquisition of Activision Blizzard.
G2 Esports Invades North America for Valorant Challengers
G2 Esports, a Berlin-based organization, announced its expansion into the North American competitive landscape by establishing a men’s team for the 2023 Valorant Challengers league.
- G2 Esports is entering the North American market with a new men’s Valorant team to compete in the 2023 Valorant Challengers league.
- The roster for the new team includes coach Immi and players ShahZaM, Dapronal, Penny, Wippie, and Oxy.
- This expansion follows G2 Esports' failure to secure a franchise slot from Riot Games, a decision influenced by the controversy surrounding former CEO Carlos ‘Ocelote’ Rodríguez’s association with Andrew Tate.
Nikkolai Petrossian Leaves CEO Role at ESforce
Nikkolai Petrossian has departed his position as CEO of ESforce Holding, a prominent Russian esports operator, after serving in various leadership capacities for over four years.
- Nikkolai Petrossian has stepped down as CEO of ESforce Holding after serving in multiple leadership roles, including media director, for over four years.
- ESforce is transitioning to a management committee structure to ensure closer operational integration with its parent company, VK Play.
- ESforce is a major regional esports operator that owns assets including the CYBERSPORT.RU media outlet, the RUHUB content studio, the EPICENTER tournament brand, and the Yota Arena.
Ubisoft and BLAST Partner for Rainbow Six Siege Esports in 2023
Ubisoft has entered into a multi-year partnership with tournament organizer BLAST to overhaul the global esports circuit for Rainbow Six Siege.
- Ubisoft and tournament organizer BLAST have entered a multi-year partnership to manage the global Rainbow Six Siege esports circuit.
- The revamped global circuit, launching in March 2023, will span nine distinct regions: Europe, North America, Brazil, Japan, South Korea, Hispanic Latin America, Asia, Oceania, and MENA.
- The new structure aims to increase the frequency of high-stakes international matches and provide a clearer competitive path for emerging teams.
Former XSET Staff Join M80
The esports organization M80 has expanded its leadership team by recruiting two former staff members from XSET.
- Former XSET co-founder Marco Mereu has launched a new esports organization called M80.
- Nate Schanker, formerly the head of social at XSET, has joined M80 as a co-founder and director of marketing.
- Zachary Azzara, previously the design director at XSET, has joined M80 to serve as the organization's creative director.
Marco Mereu Launches M80
In December 2022, Marco Mereu, a co-founder of the esports organization XSET, announced his departure from the company to launch a new venture, M80.
- Marco Mereu, a co-founder of XSET, has launched a new esports organization named M80.
- M80 will compete in multiple esports titles, beginning with a roster for the 2023 Valorant Challengers league.
- The M80 Valorant roster includes Mohamed “johnqt” Amine Ouarid, Gianfranco “koalanoob” Potestio, Marc-Andre “NiSMO” Tayar, Daniel “eeiu” Vucenovic, and Alexander “Zander” Dituri.