The Esports Advocate
Esports business news: deals, legal, and governance.
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Loco Lays Off 40 Employees
The Bengaluru-based gaming and entertainment streaming platform Loco has reduced its workforce by approximately 35%, resulting in the termination of 40 employees.
- Indian streaming platform Loco has laid off 40 employees, representing approximately 35% of its total workforce of 110.
- The company is shifting its business model from ad-based monetization to a transaction-based approach following a strategic review.
- Loco reported early success with its new focus, reaching over 100,000 paying users within a 60-day period.
Exclusive: Galaxy Racer NA/HER Galaxy Staff Fired
The Dubai-based esports organization Galaxy Racer abruptly shuttered its North American operations in November 2023, resulting in the termination of its regional staff.
- Dubai-based esports organization Galaxy Racer has abruptly shuttered its North American operations and ceased communication with local staff.
- The closure followed an ultimatum from North American employees, who had retained legal counsel and threatened a class-action lawsuit over three months of unpaid wages.
- Galaxy Racer headquarters initiated wire transfers to North American staff late Wednesday into Thursday, though the specific amounts remain unconfirmed.
Russian Lawmakers Propose Cutting Out Esports IP Holders
Russian lawmakers have introduced a legislative proposal that would permit the operation of esports tournaments within the country without the authorization or licensing agreements of intellectual property (IP) holders.
- Russian lawmakers are proposing legislation that would allow the operation of esports tournaments within the country without requiring licenses or permission from international IP holders, such as Riot Games, Activision Blizzard, Ubisoft, and Epic Games.
- The proposal includes the creation of a public-law company (PLC) to manage licensing fees, which would be held for three years before potentially being redirected to Russian developers or the Russian Esports Federation if unclaimed by the original IP owners.
- This legislative move is widely viewed as a strategy to circumvent international sanctions and facilitate the 'Games of the Future' event, a tournament announced by Vladimir Putin and Xi Jinping.
Apex Legends Global Series Year 4 Partnered Teams Revealed
Electronic Arts has officially designated 12 organizations as partnered teams for the 2024 season of the Apex Legends Global Series.
- Electronic Arts has selected 12 organizations as official partners for the 2024 Apex Legends Global Series (ALGS) Year 4.
- Partnered teams receive a share of revenue generated from league activities and in-game item sales, such as character skins.
- The 12 selected organizations are Alliance, DarkZero, Disguised, FaZe Clan, Fnatic, FURIA, LG Chivas, Moist Esports, OpTic Gaming, Riddle, TSM, and XSET.
Layoffs Hit Freaks 4U Gaming
Germany-based esports and gaming organization Freaks 4U Gaming has initiated a workforce reduction as part of a broader effort to address ongoing financial challenges within the current market environment.
- Germany-based esports company Freaks 4U Gaming is reducing its workforce by approximately 30 positions, moving from 215 to 185 employees by the end of 2023.
- The layoffs are a result of financial challenges and a strategic decision to scale back various esports operations.
- Freaks 4U Gaming is sunsetting 'Summoner’s Inn,' a platform that supported League of Legends in the DACH region for 10 years.
Marc Merrill Promoted to Newly Created Role of Chief Product Officer
Riot Games has appointed co-founder and former co-CEO Marc Merrill to the newly created position of Chief Product Officer.
- Riot Games co-founder and former co-CEO Marc Merrill has been appointed to the newly created role of Chief Product Officer.
- In his new position, Merrill will oversee the entire ecosystem of Riot’s product offerings, including League of Legends, Valorant, Teamfight Tactics, Wild Rift, Legends of Runeterra, and upcoming MMO and fighting game projects.
- Merrill will report directly to current Riot Games CEO Dylan Jadeja.
M80 Partners With Shikenso Analytics
North American esports organization M80 has entered into a strategic partnership with Shikenso Analytics, a Germany-based firm specializing in marketing and sponsorship data.
- North American esports organization M80 has entered into a partnership with the German analytics firm Shikenso Analytics.
- M80 will utilize Shikenso’s AI-powered tools to measure the effectiveness of sponsorship campaigns across live streams, video content, and social media channels.
- The financial terms and the duration of the partnership agreement were not disclosed.
Gen.G Esports to Promote Storm Striker in North America
South Korean game development studio Super Storm has entered a strategic partnership with global esports organization Gen.G Esports to facilitate the North American launch of its title, Storm Striker.
- South Korean developer Super Storm has partnered with Gen.G Esports to lead the North American launch and promotion of its 5v5 hyper-action game, Storm Striker.
- Gen.G will execute a multi-channel marketing strategy including influencer-led streams, social media campaigns, and community events to grow the game's English-speaking Discord presence.
- The partnership leverages Gen.G’s established collegiate gaming network to host activations, community contests, and long-term competitive esports strategy development for the title.
DreamHack Stockholm 2024 Announced
The ESL FACEIT Group has announced the expansion of its gaming festival portfolio with the addition of DreamHack Stockholm, scheduled to take place from November 22–24, 2024, at the Stockholmsmässan venue in Sweden.
- DreamHack will host a new gaming festival in Stockholm, Sweden, at the Stockholmsmässan venue from November 22–24, 2024.
- Elgiganten has been secured as the official presenting partner for the inaugural DreamHack Stockholm event.
- Tickets for the Stockholm festival are scheduled to go on sale starting March 26, 2024.
The Esports Awards Partners With Logitech G, LIV Golf, and Gillette
The Esports Awards has secured three significant commercial partnerships ahead of its 2023 ceremony, reinforcing its position as a major event in the competitive gaming industry.
- The Esports Awards has secured new partnerships with LIV Golf and Gillette, while renewing its existing partnership with Logitech G.
- Logitech G will serve as the official PC hardware partner for the 2023 awards ceremony and sponsor the 'Esports Team of the Year' award.
- LIV Golf, which is backed by the Saudi Public Investment Fund, will help facilitate the third annual Esports Awards Open golf event at the Las Vegas Paiute Golf Resort.
Global Esports Federation, International Esports Federation Promise Future Cooperation
The Global Esports Federation and the International Esports Federation have signed a formal letter of intent to pursue future cooperation and collaborative initiatives.
- The Global Esports Federation (GEF) and the International Esports Federation (IESF) have signed a Letter of Intent to explore future collaborative initiatives.
- HRH Prince Faisal bin Bandar bin Sultan Al Saud has been elected as the permanent president of the IESF, following his tenure as acting president.
- Prince Faisal currently holds leadership roles in both the GEF and IESF, as well as the Saudi Esports Federation and the Arab Esports Federation.
Misfits Partners With Mars Petcare for TEMPTATIONS Campaign
Mars Petcare has entered into a strategic partnership with the Florida-based esports and gaming entertainment company Misfits Gaming Group to promote the TEMPTATIONS cat treat brand.
- Mars Petcare has partnered with Misfits Gaming to promote its TEMPTATIONS cat treat brand, marking a rare instance of a petcare brand entering the esports and gaming space.
- The partnership includes a pilot program featuring playable cat-centric gaming experiences and content from Twitch influencer Ranboo.
- Misfits is integrating the TEMPTATIONS brand into the TubNet Minecraft server through two custom activations: the 'TEMPTATIONS Cat Cafe' and a parkour game called 'Purrsuit'.