The Esports Advocate
Esports business news: deals, legal, and governance.
Documents
Twitch Cuts 400 Employees in New Round of Amazon Layoffs
In March 2023, the streaming platform Twitch announced a workforce reduction of approximately 400 employees.
- Twitch is laying off approximately 400 employees as part of a broader workforce reduction at its parent company, Amazon.
- The layoffs are part of a larger initiative by Amazon to cut 9,000 positions across multiple divisions.
- Twitch President Daniel Clancy cited a challenging macroeconomic environment and slower-than-expected user and revenue growth as the primary drivers for the staff reductions.
A Web of Relationships and the Olympic Esports Series
The selection process for the 2023 Olympic Esports Series has faced scrutiny due to apparent conflicts of interest involving the Singapore-based developer Refract Technologies.
- The Olympic Esports Series selected 'Virtual Taekwondo' and 'Tic Tac Bow,' both developed by Singapore-based studio Refract Technologies, which has direct financial and leadership ties to the Global Esports Federation (GEF).
- Chris Chan serves simultaneously as the president of the Global Esports Federation and the secretary general of the Singapore National Olympic Council, the latter of which held decision-making power over the selection of games for the series.
- Refract Technologies founders and executives hold multiple positions within the Global Esports Federation and the Singapore Esports Association, creating a network of overlapping interests between the developer and the organizations influencing game selection.
Layoffs Hit Scholastic Esports Company PlayVS
In March 2023, the Los Angeles-based scholastic esports company PlayVS implemented a reduction in force, affecting approximately 20 employees. This figure represents roughly 25% of the company’s total workforce.
- Scholastic esports company PlayVS conducted a round of layoffs in March 2023 that affected approximately 20 employees, representing roughly 25% of its total workforce.
- Company management reportedly provided no advance warning regarding the layoffs, leaving staff and leadership surprised by the sudden reduction in force.
- While PlayVS management stated that only two members of the League Operations department were affected, internal sources suggested the department took a significant hit that could impact future league operations.
Walter Wang Leaving COO Role at TSM
Walter Wang, the Chief Operating Officer of the esports organization TSM, announced his departure from the company in March 2023.
- Walter Wang has stepped down as Chief Operating Officer of TSM after a six-year tenure with the organization.
- Wang originally joined TSM in 2017 as an advisor before ascending to senior roles including senior director of operations and vice president of operations.
- He was appointed to the position of Chief Operating Officer in November 2021.
Illinois High School Association Dumps NBA 2K Tournaments
The Illinois High School Association (IHSA) has officially excluded NBA 2K from its 2023 State Series esports competition.
- The Illinois High School Association (IHSA) has removed NBA 2K from its 2023 State Series esports competition to avoid mandatory reliance on third-party tournament organizer PlayVS.
- The IHSA board maintains a standing policy against working with third-party scholastic esports programs, citing incompatible rules for titles like Mario Kart 8 and the absence of FIFA support as primary friction points with PlayVS.
- PlayVS holds the exclusive licensing rights to NBA 2K for scholastic tournaments, effectively forcing the IHSA to either partner with the company or drop the game entirely from its state-wide series.
Esports Engine Co-Founder and President Adam Apicella Is Leaving the Company
Adam Apicella, co-founder and president of the esports production firm Esports Engine, has departed the company.
- Adam Apicella, co-founder and president of Esports Engine, has mutually agreed to depart the company.
- The exit follows the March 1, 2023, acquisition of Vindex—the parent company of Esports Engine—by the ESL FACEIT Group.
- ESL FACEIT Group is owned by Savvy Games Group, which is backed by the Saudi government’s Public Investment Fund.
Gen.G, McDonald’s, and BCGA Team for HBCU+ College netWORK Summit
Gen.G Esports, in collaboration with the Black Collegiate Gaming Association (BCGA) and McDonald’s, launched the HBCU+ College netWORK Summit to foster professional development for Black college students interested in the gaming and esports industries.
- Gen.G has partnered with the Black Collegiate Gaming Association (BCGA) and McDonald’s to launch the HBCU+ College netWORK Summit, an initiative designed to connect Black college students with gaming industry professionals.
- The summit will feature panels and networking mixers in Baltimore, Washington, D.C., and the Eastern Shore area, focusing on topics such as workplace toxicity and emerging industry trends.
- The event includes an NBA 2K tournament for 16 student participants, featuring a $1,000 USD prize pool and streaming coverage on the official Gen.G Twitch channel.
EXCEL Esports Partners With HSBC UK
London-based esports organization EXCEL Esports entered into a strategic partnership with HSBC UK in March 2023.
- London-based esports organization EXCEL Esports has signed a partnership with HSBC UK, naming the bank its official financial services partner and financial health provider.
- The collaboration focuses on financial education for young people and entrepreneurs, specifically promoting the HSBC UK Education Network, which has previously helped over 445,000 individuals build financial skills.
- The partnership includes branding across EXCEL’s social media and streaming channels, collaborative content creation, and prominent jersey placement on all competitive teams.
Olympic Council of Asia Removes Hearthstone From Hangzhou Asian Games
The Olympic Council of Asia has officially removed the digital card game Hearthstone from the roster of esports titles for the Hangzhou Asian Games.
- The Olympic Council of Asia has removed Hearthstone from the Hangzhou Asian Games competition lineup.
- The removal is a direct consequence of the terminated partnership between Activision Blizzard and NetEase, which resulted in the shutdown of all Hearthstone servers in mainland China.
- With the removal of Hearthstone, the total number of official esports titles for the Hangzhou Asian Games has been reduced to seven.
DreamHack San Diego: Esports Schedule and Highlights
DreamHack San Diego, organized by the ESL FACEIT Group, held its inaugural gaming festival at the San Diego Convention Center from April 7–9, 2023.
- DreamHack San Diego will take place from April 7–9, 2023, at the San Diego Convention Center, marking the festival's debut in the city with Intel and Monster Energy as marquee sponsors.
- The event features the Rocket League Championship Series (RLCS) Winter Major, which includes a $310,000 prize pool for the top 16 North American teams.
- A 'drop-in' Zero Build Fortnite tournament will offer a $250,000 prize pool, open to all attendees who hold a 'Bring Your Own Computer' (BYOC) ticket.
Swiss Watchmaker TISSOT Sponsors Edward Gaming
Swiss watchmaker Tissot has entered into a sponsorship agreement with the Chinese esports organization Edward Gaming (EDG), establishing itself as the team’s exclusive watch partner.
- Swiss watchmaker TISSOT has signed an exclusive partnership with the Chinese esports organization Edward Gaming (EDG) for its League of Legends Pro League (LPL) team.
- This deal marks the first time an LPL team has secured a sponsorship agreement with an international watch brand.
- The TISSOT brand will be featured on the left shoulder of EDG team jerseys, though players are not required to wear the watches during competitive matches.
DRX Partners With LG
South Korean esports organization DRX has entered into a strategic partnership with electronics manufacturer LG.
- South Korean esports organization DRX has entered into a partnership with electronics manufacturer LG.
- Under the agreement, DRX will promote LG’s 27-inch and 41-inch OLED displays through social media, marketing campaigns, and branding on team jerseys and online platforms.
- The financial terms of the partnership between DRX and LG were not disclosed.