Overwatch League Shuts Down after Six Seasons, Citing Revenue Loss and Declining Player Interest

Failed business model, ongoing pandemic, company controversies, and dwindling player engagement led to the closure of the ambitious esports league. Replacement plans are underway, with a smaller, traditional league expected as part of a revitalized esports program.

The ambitious Overwatch League, a multinational esports league, is shutting down after six seasons due to declining player interest and revenue losses. The league was known for its city-based team franchises, some of which paid up to $65 million to join.
In response to the closure, developer Blizzard - now owned by Microsoft - will compensate franchise teams with approximately $120 million. The company has planned an alternative future for Overwatch as an esport, which is expected to be a smaller and conventional league.
The COVID-19 pandemic significantly impacted the Overwatch League as it prevented the business model of city-based arenas and live audiences from materializing. Digital viewership did not establish strong local fanbases, and the absence of live audiences turned the Overwatch League into just another online esports league. Additionally, Activision Blizzard's high-profile controversies caused major advertisers to withdraw support at a crucial point.
Overwatch, the video game at the heart of the League, had problems maintaining player engagement due to balancing demands against professional-level players, amateur players, and spectators. Frequent changes to the game’s mechanics and character roster made it hard to follow from a spectator's viewpoint, further decreasing interest in the Overwatch League.
Apart from internal issues, external factors like a shift to a Battle Pass model with premium currency shop for Overwatch and a halt in the release of new characters led to a decline in player interest, negatively affecting Overwatch League's spectator numbers and profitability.