Six Random Thoughts About the Overwatch League Announcement

This is the Overwatch League logo right? Sorry guys, I get confused sometimes.

So it looks like at least 7 people are willing to spend $20 million dollars on an Overwatch frachise, as Blizzard has announced the first seven teams of its Overwatch league, as well as some more details about how the league is going to work. A few random thoughts about all this:

  • The investors behind the teams are a truly eclectic group, with a couple of traditional sports names (Bob Kraft of the New England Patriots, Jeff Wilpon, COO of the New York Nets), a few existing e-sports Teams (NRG Esports, Misfits and Immortals), a rich businessman (Kevn Chou, co-founder of mobile game company Kabam) and a tech company (Net Ease, the company that operates Blizzard’s titles in China). I have no comment except to say that putting all these people in a room and having them interact with each other might be more entertaining than the actual Overwatch matches.
  • You have to think that Blizzard would have preferred to announce a full roster of teams at this point, not just 7. It looks like they were indeed having trouble getting people to put up the entrance fee. Still, like the old song lyric goes, 7 out of 10 ain’t bad.
  • In keeping with the above, the Net Ease addition is a bit puzzling. Investing in something as risky and untested as an E-Sports league isn’t something corporations are known for doing. Given Net Ease’s existing relationship with Blizzard, you have to wonder if maybe someone called in a favor of some kind to fill up a spot.
  • Two of the teams will be based in Asia (Shanghai and Seoul to be exact). So it looks like e-sports has beat traditional sports on the trans-continental sports league issue. At the same time, all the games (at least for the first season) will be played at the same arena in Los Angeles, so it looks like this will only make a difference in terms of the city each team will be flying from in order to get to Los Angeles. Still not a fan of Blizzard trying to force its’ league into a traditional sports model.
  • Blizzard also announced its’ player “scouting report,” which is basically the e-sports equivalent of a minor league baseball team holding open tryouts. The top 500 ranked players in Overwatch in the last six months (not in pro tournaments, just regular Overwatch players playing for fun at home in ranked mode), will be contacted by Blizzard asking them if they want to be eligible for the league. If they say yes, their names and info will be provided to the current team owners and they’ll be eligible to sign a deal for that sweet, sweet $50,000/year minimum salary. While this is certainly cool in an “anybody can make it” kind of way, you’d think we were past this at this point, and that the Overwatch talent pipeline would be mature enough that this kind of thing wouldn’t be necessary. Maybe Blizzard slowly suffocating the rest of the Overwatch scene since the beginning of the year wasn’t a good idea after all.
  • Lastly, just because I don’t want to end on something negative, it’s still really, really cool that this is even happening. If you had told me even a few years ago that something like this would exist, I wouldn’t have believed you. Even if the traditional city-based model doesn’t work out, it will still be really interesting to see how this shakes out. And if it’s successful, I have no doubt that this league will probably be seen as a major turning point in the development of e-sports when people look back on things 20 years from now. Congrats to Blizzard for putting their effort behind this.

 

MLB to File Trademark Dispute Regarding Overwatch League Logo

From the “this is why people hate lawyers” file, it appears that Major League Baseball has filed a notice with the US Patent and Trademark Office stating it intends to dispute Blizzard’s registration of the logo for its upcoming Overwatch league, on the grounds that it may be confusing with its own logo. Here’s the two logos side by side for comparison:

Logo ComparisonConfused? Me either. The main similarity between the two appears to be the image of a white silhouette bordered by a two tone background. Hmm, why does that sound familiar? Oh right.

                    NBA Logo

So watch out NBA. After the MLB’s inevitable crushing victory against Blizzard, you’re next.

My favorite thing about this story though? Technically this isn’t really news. The MLB actually filed the notice at the heart of this story almost three months ago, in late April. No one reported on it at the time, and since then there’s actually been no new developments on this (the MLB has until July 26 to file their legal argument in the dispute).

As far as I can tell, the only reason this has become a story now is that New York entertainment law firm Morrison Lee posted an item about it on their firm blog and everyone else just ran with it, with the story even ending up in non-gaming publications such as Deadspin, and CBS Sports. This probably says a lot of things about how the media works that I’m not smart enough to encapsulate in writing here. In any event, it looks like one little law firm blog can change the world after all. In keeping with that, if anyone out there has any sweet, sweet industry gossip they’d like to leak, please know that I am available.

Is Blizzard Killing Overwatch as an E-Sport?

Today, the fantastically-named Swedish e-sports organisation Ninjas in Pyjamas became the latest in a long line of organizations to drop their Overwatch team. The reasons cited by NiP in their official statement are similar to those cited by the many other e-sports outfits who have dropped their Overwatch teams in recent months: uncertainty about the future of the Overwatch scene, and a lack of information about Blizzard’s upcoming Overwatch league. The statement reads in part:

We entered the Overwatch scene last year just as the game launched, with one of the strongest lineups at the time of entry. The prospect of an emerging esport title was exciting as Ninjas in Pyjamas and other esports organizations picked up teams. As time passed we have seen a growing amount of teams release their Overwatch lineups as they assess the future of the game as an esports title.

Today we announce that we will be joining the growing list of organizations placing Overwatch as one of the titles to observe but not to be involved in, given the uncertainties of the scene.

While  unfortunate, it’s not difficult to understand why Ninjas in Pyjamas, made this decision. Aside from the much-hyped Blizzard league, which everyone seems to be awaiting with baited breath, but for which details have been essentially non-existent, there’s simply not enough other Overwatch events happening to support most pro teams.

Ninjas in Pyjamas, in happier times.

Overwatch e-sports site over.gg summarizes the situation neatly. The period from August of 2016, when Overwatch was released, to January of this year, saw 9 major offline Overwatch tournaments (‘offline’ tournaments being the large, in-person tournaments that attract high numbers of viewers). Since then, outside of Korea’s popular APEX league, which continues to thrive, and Blizzard’s own Contenders series, billed as a developmental league for the upcoming ‘real’ Overwatch league, there have been essentially no major offline Overwatch tournaments anywhere in the world.

Given the game’s continued popularity, it’s unlikely that lack of fan interest can fully explain why Overwatch tournaments have dried up this way. Instead, reports have been surfacing about another likely culprit: many organizers have been having problems obtaining licenses from Blizzard to run tournaments. For instance, January of this year Blizzard denied an Overwatch tournament license to Pro Esports Association (PES), a nascent e-sports organisation formed by a number of North America’s largest e-sports teams that looked poised to become a major player in the industry, and had plans to start its own Overwatch league. No official reason was given. Since then, reports have surfaced that multiple other organizers have been having significant trouble getting licenses to run any kind of major tournament, for reasons that often don’t hold water, such as scheduling conflicts with less popular ‘online’ tournaments.

While Blizzard has not publicly acknowledged or provided any reasoning for this freeze (pun not intended) on tournament licenses, it’s not hard to see why the company would be acting the way it is. If Blizzard is going to be starting up their own Overwatch league, and that league is supposed to become the go-to place for Overwatch e-sports, why allow a potential competitor like PES permission to run their own league? Why give any third-party organizers permission to run their own tournaments, when these events could develop their own followings, and drain eyeballs and interest from Blizzard’s own flagship offering?

While this is all just speculation, and I’m still waiting for the leaked video of a Blizzard exec explaining that this is their master plan while twirling their mustache, it’s hard to deny that Blizzard has a massive incentive to discourage any competitor from gaining any kind of foothold in the Overwatch e-sports scene, and, through denying them tournament licenses, a simple and effective means to do it. The unfortunate thing is that by taking this approach, Blizzard appears to slowly suffocating the Overwatch e-sports scene as a whole in the process.

This state of a affairs highlights one significant difference between e-sports and traditional sports, one that e-sports are going to contend with and address if they’re going to be successful in the long-term: Nobody “owns” traditional sports. If someone wants to start up their own football league, they don’t need a license from the NFL to do so. With e-sports, of course, that’s not the case. Blizzard, and any other company that owns an e-sports IP, could shut down every competing e-sports offering tomorrow if they wanted to, by simply denying them a license to operate.

While most game companies are not doing this at the moment, and seem content to  license their IP freely in order to let their game’s scene develop, as the money at stake increases we’re likely to see more and more companies following Blizzard’s lead on this and freezing out (I swear I’m not doing it on purpose) their competitors in order to protect their own e-sports offerings.

Ultimately, this seems like it’s extremely unhealthy for e-sports, especially at a time when the field is still evolving and people are still trying to figure out what the right long-term business model for e-sports is. This is when different leagues and tournament organizers should each be allowed to put out their own product and compete for viewers. Ultimately this kind competition is best way to allow well-functioning, viable e-sports businesses to develop. The NFL didn’t get where it is today by denying other leagues licenses to host football games. It got there by competing with them, and offering a better product. Blizzard doesn’t have to do any of that if it doesn’t want to. They can simply lock everyone else out of the Overwatch scene, leaving them as the only show in town. Unfortunately, if they mismanage that scene (as they seem to be doing) or offer an inferior product, fans of Overwatch as an e-sport will have nowhere else to turn to.

In the end, this is sad to see. Overwatch has been a massive success as a game since its release, and it should be thriving as an e-sport. Instead, it appears to be dying on the vine. Hopefully Blizzard decides to re-evaluate their approach to this issue, and their ongoing support for the Overwatch scene, in the future.

Would You Pay $10,000,000 for a League of Legends Team?

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Riot Games has recently announced some major changes to the way it’s North America League of Legends Championship Series functions, in an attempt to move the NALCS into a more structured format that more closely mirrors the way major traditional sports leagues like the NFL or NBA currently operate.

Starting 2018, teams will no longer have to qualify for the NALCS through competing in a series of lower-level tournaments, nor will they face the immediate prospect of relegation if they don’t do well. Instead, ten teams will be more-or-less guaranteed spots in the league indefinitely. All the teams will share in the league’s revenues, with performance incentives for teams that place better. There’s even talk of a player’s union, as well as a minimum player salary of $75,000.

The most noteworthy aspect of this, however, is the price that Riot is reportedly asking for a franchise. Reports are that a franchise in the new-and-improved NALCS will cost a cool $10 million, around 5-10 times what LoL teams are currently reported to be going for. At this sky-high price, it’s more than likely that the majority of the teams currently in the NALCS will not be able to come up with that kind of money. Blizzard, which announced its own plans for a similar Overwatch league a few months ago, and is reportedly asking a similarly high figure $20 million per franchise, has run into some problems recently as multiple existing e-sports organisations balked at putting together teams for the league due in large part due to the high cost of entry.

Maybe the slack will be picked up by new outside investors or traditional sports franchises, who are willing to put up that kind of money in order to get in on the ground floor of the e-Sports business. Indeed, that seems to be the direction Blizzard has been heading with its Overwatch league, as the company reportedly focuses on attracting these investors at the expense of teams in the existing Overwatch e-sports ecosystem. However, unless Riot can show these investors a credible plan for how they are going to make their money back, it remains to be seen whether enough of them will come through to support a full roster of teams for the NACLS.

It may be that Riot is putting the cart before the horse here. If all goes well I have no doubt that 10 years from now a NALCS team (or whatever the NALCS equivalent is then) will be worth $10 million or more. However at this point it’s hard to believe that the economics of the (e-)sport justify paying this much for a franchise. By asking for this kind of buy-in fee, Riot risks pricing out and alienating the teams and players that have built LoL as an e-Sport from the ground up in the first place. Whether this is going to have a positive effect on LoL as an e-sport in the long term is an open question.

Riot is set to announce the 10-team roster for its league in November, 2017. It will be interesting to see whether Riot manages to put together a 10-team roster at the reported $10 million buy-in fee by that deadline.