Blizzard has closed the Overwatch League, but is not giving up on cybersports

Activision Blizzard has announced the closure of the Overwatch League cybersport league. They will develop the competitive scene in a different direction. The Overwatch League was created in 2016, modeled after sporting events. City teams compete in seasonal matches at home and away, and then go to the playoffs and the world championships.

Despite Overwatch League's high startup costs (about $20 million), the project suffered from the COVID-19 pandemic a few years after its launch, which made it impossible for spectators to attend games. The situation worsened in 2021 when several major sponsors stopped supporting the league. 

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Earlier this year, gamers in the PRC lost access to Blizzard games due to a conflict between Activision Blizzard and its Chinese partner NetEase, which also jeopardized the Overwatch League.

Activision Blizzard announced a vote at the end of the Overwatch League season to renew the operating agreement. However, on November 8, OverActive Media announced that it had entered into a definitive agreement with the publisher. Under the terms of the agreement, OverActive will receive a $6 million payment for terminating the agreement. 

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In November, the Toronto Defiant announced they were leaving the league. Esports Advocate points out that the majority of teams voted to leave the Overwatch League. Other teams have not yet made statements regarding their withdrawal from the league. Activision Blizzard has announced that it will be taking Overwatch competitions in a "new direction".

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