By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
EsportsGenEsportsGen
  • Home
  • News
    • Mobile Gaming
      • Battlegrounds Mobile India
      • Brawl Stars
      • Call of Duty Mobile
      • FIFA Mobile 22
      • Free Fire
      • Genshin Impact
      • Mobile Legends : Bang Bang
      • PUBG Mobile
      • PUBG New State
      • Warzone Mobile
      • Wild Rift
    • PC Gaming
      • Apex Legends
      • Call of Duty
      • Counter Strike
      • Dota 2
      • Fortnite
      • GTA
      • League of Legends
      • Minecraft
      • Overwatch
      • PUBG
      • Rainbow Six Siege
      • Roblox
      • VALORANT
    • Console
  • Streaming
    • Kick
    • Twitch
    • YouTube
  • Featured
    • TOP 5/10
    • Editorials
    • Reviews
    • Interview
    • Teams
    • Players
  • Ranking
    • PUBG Mobile
      • World Ranking
      • Regional Ranking
      • Ranking Rules
    • Free Fire
      • World Ranking
      • Regional Ranking
      • Ranking Rules
  • Business
  • Guide
    • PUBG Mobile
    • Wild Rift
  • About Us
  • Contact Us
  • My Bookmarks
  • Privacy Policy
  • Disclaimer
  • Terms and Conditions
Reading: Is the esports industry slowly dying? CHECK DETAILS
Share
Sign In
Notification Show More
EsportsGenEsportsGen
Search
  • Home
  • News
    • Mobile Gaming
    • PC Gaming
    • Console
  • Streaming
    • Kick
    • Twitch
    • YouTube
  • Featured
    • TOP 5/10
    • Editorials
    • Reviews
    • Interview
    • Teams
    • Players
  • Ranking
    • PUBG Mobile
    • Free Fire
  • Business
  • Guide
    • PUBG Mobile
    • Wild Rift
Have an existing account? Sign In
Follow US
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
© 2023 esportsgen. All Rights Reserved.
EsportsGen > News > Business > Is the esports industry slowly dying? CHECK DETAILS
BusinessEditorialsLatestNews

Is the esports industry slowly dying? CHECK DETAILS

Ashish Mahato
Last updated: 2023/02/24 at 5:38 PM
Ashish Mahato  - Freelance Writer
Share
6 Min Read
Is the esports industry slowly dying? CHECK DETAILS
SHARE

Is the esports industry slowly dying? It has been just 2 months in 2023 but the esports industry has seen many setbacks already. Many esports organizations have laid off staff and players to stay afloat.  Let us take a look at why the esports scene is facing such tough times in 2023.

Contents
Is the esports industry slowly dying? CHECK DETAILSWhy do esports teams struggle to make money?How bad does the esports industry look in 2023?

This downward trend started with FTX filing for bankruptcy in November 2022. It resulted in the suspension of the $210 million deal of the crypto trading platform with TSM, one of America’s largest esports groups. Following this, many other esports organizations which had made deals with other crypto firms earlier also started moving away from them.

Is the esports industry slowly dying? CHECK DETAILS

It resulted in a steep fall in investment in the esports scene, making it difficult for gaming teams and esports organizations to operate. When it comes to investing in the esports industry, very few companies (which are not associated with gaming) wholeheartedly venture into it.

Esports in 2023:@TheGuard dead@eUnited dead@TorrentHQ dead@FaZeClan 20% staff laid off, stock down 60%@100Thieves 15% staff laid off@OpTic staff cuts@Immortals staff cuts@TeamLiquid staff cuts@nerdstreet financial trouble and 25% staff cut@riotgames 46 jobs cut

— Keeg (@KeegMGMT) February 23, 2023

Why do esports teams struggle to make money?

It happens because esports organizations do not have any fixed product to work with. The popularity of any esports organization depends upon the performance of its team in international competition. It is hard to be consistent in any esports game and once an esports team gets defeated, fans also quickly move away from them.

There are very few avenues for esports teams to make money. They need to either win competitions, bag sponsorship/partnership deals or allow their players to stream online apart from playing professionally so as to make money from advertisements.

Moreover, there are too many games getting released every year and it is hard for any esports franchise to continuously compete with an actively growing competition. Only a few games like League of Legends, DOTA 2, VALORANT, CS: GO have successfully cultivated an audience that allows them to run an international circuit with separate competitions for different regions.

How bad does the esports industry look in 2023?

Coming into the new year, the esports industry has not been performing well.

  • Popular esports org FaZe Clan had gone public on the American Stock Exchange back in August 2022. The IPO had started at a price of $9.88 a share. The prices of its shares have declined more than 92% and are valued at only $0.6799 a share currently. It has resulted in FaZe Clan laying off 20% of its staff.
  • eUnited had a successful PUBG team that had won the ESL Major two times and ranked 4th in the PGC 2022 competition. But unfortunately, the roster was let go of by the organization.
  • Torrent was another esports organization that participated in Apex Legends and Rocket League competitive tournaments. It was shut down on Feb. 8.

Our statement regarding the future of Torrent: pic.twitter.com/8G48Jemhp2

— Torrent (@TorrentHQ) February 8, 2023

Other popular esports organizations like 100 Thieves, Team Liquid, OpTic Gaming, and Immortals have also laid off a percentage of their workforce this year.

Electronic Arts known for its highly successful FIFA video game series, announced that they will be shutting down their Apex Legends Mobile game and canceling the Battlefield Mobile release. Even Riot Games, the developer of massive games like League of Legends and VALORANT, has let go of some of its staff this year.

Bad news for Mobile Gaming Community.

EA Shut Down Battlefield Mobile and Apex Legends Mobile. Due to low response.#apexlegendsmobile #battlefieldmobile #eagames #GamingNews #gamenews #rip #games #TheLastOfUs #gamer #MobileGame #ApexLegends pic.twitter.com/uFIFfyeNgl

— Shield Media (@shieldmedia_) February 1, 2023

The latest esports organization which let go of a large number of people is The Guard. Their VALORANT roster has been highly successful in North America. Apart from retaining this esports team, the organization has shut down its design, social media, management, and talent departments.

The Guard had several employees move to Los Angeles weeks before firing them pic.twitter.com/c2fnqOoz61

— Dexerto (@Dexerto) February 23, 2023

While the future of the esports industry is not all rainbows and sunshine, there is still a lot of potential in it. Let us see how it pans out in the coming months and years.

Stay tuned with us to find the latest updates regarding your favorite PC, console, and mobile games along with their esports scenes.

Read More– Why Has Apex Legends Become So Popular?

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

    By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
    Ashish Mahato February 24, 2023 February 24, 2023
    Share This Article
    Facebook Twitter Copy Link Print
    Share
    By Ashish Mahato Freelance Writer
    Follow:
    Freelance Writer at EsportsGen and Dot Esports. Ashish grew up playing RPGs and MMOs, and has been writing about them since 2021. He covers League of Legends, its esports scene, along with MMORPGs and other general gaming topics occasionally. You will find him either engrossed in reading fanfictions, or playing Honkai: Star Rail in his free time.
    Previous Article Genshin Impact Version 3.5 Update: Hoyoverse introduces new Genshin Impact 3.5 Genius Invokation TCG Card Genshin Impact Version 3.5 Update: Hoyoverse introduces new Genshin Impact 3.5 Genius Invokation TCG Card
    Next Article Reward FF TheExtraEvent Com: Check how to redeem the latest Codes from the Redemption Site, ALL DETAILS Reward FF TheExtraEvent Com: Check how to redeem the latest Codes from Free Fire Redemption Website
    1 Comment 1 Comment
    • Ashish Jha says:
      February 24, 2023 at 9:11 pm

      Like every other Business in 2023 it was inevitable for Esports industry and Org to face setbacks. Post recession every business will be on track.

      Reply

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    PUBG Mobile World Ranking

    TEAM NAME
    #1Vampire Esports
    #2Influence Rage
    #3Team Weibo
    #4Stalwart Esports
    #5Six Two Eight
    View More

    Recent Posts

    PMGC 2023 Grand Finals Day 1: Stalwart Esports dominated Day 1, CHECK Overall Standings
    Latest Mobile Gaming News PUBG Mobile
    PMGC 2024 United Kingdom will feature a total of $3 Million Prize Pool, Check Details
    PMGC 2024 United Kingdom will feature a total of $3 Million Prize Pool, Check Details
    Latest Mobile Gaming News PUBG Mobile
    The Game Awards 2023: Check All Winners and Categories here
    The Game Awards 2023: Check All Winners and Categories here
    Latest News
    GTA 6 PC Requirements: Release Date and more information here
    GTA 6 PC Requirements: Release Date and more information here
    GTA Latest News PC Gaming
    Free Fire Max FrostFire Hyperbook Top-up Event: Get exclusive rewards for free 
    Free Fire Max FrostFire Hyperbook Top-up Event: Get exclusive rewards for free 
    Free Fire Latest Mobile Gaming News
    GTA 5 star Ned Luke responds to xQc's $1 Million offer for GTA 6 early access
    GTA 5 star Ned Luke responds to xQc’s $1 Million offer for GTA 6 early access
    GTA Latest News Streaming Twitch
    Prince of Persia's Lost Crown Teaser and Demo Date Revealed Before Schedule
    Prince of Persia’s Lost Crown Teaser and Demo Date Revealed Before Schedule
    Latest News
    Bihar State Esports Open Championship Registration Links, Schedule, Process, and More
    Battlegrounds Mobile India FIFA Mobile 22 Latest Mobile Gaming News
    CoD Mobile Mythic Siren Lucky Draw: Get Mythic Character, Gun blueprint, and More
    CoD Mobile Mythic Siren Lucky Draw: Get Mythic Character, Gun blueprint, and More
    Call of Duty Mobile Latest Mobile Gaming News
    PUBG Mobile Esports unveils PMGO 2024 Brazil, PMWI 2024, PMSL 2024, and More
    PUBG Mobile Esports unveils PMGO 2024 Brazil, PMWI 2024, PMSL 2024, and More
    Latest Mobile Gaming News PUBG Mobile
    EsportsGen
    • About Us
    • Contact Us
    • Privacy Policy
    • Terms & Conditions
    • Disclaimer
    © 2023 esportsgen. All Rights Reserved.
    Welcome Back!

    Sign in to your account

    Register Lost your password?