The eSports industry is going through difficult times, according to analysts. Photo: Beyond The Summit/EsportsGen
Hard times for eSports. Beyond The Summit (BTS), a well-known esports tournament producer and operator, has just laid off 100% of its staff. BTS’s managing partner, David Gorman, has issued a statement, via Twitter, in which he ensures that the company will offer compensation and benefits to its staff, as well as compliance with all existing contracts with its clients.
bts, founded 11 years ago, has stood out for its focus on the more amateur eSports scene and for the great participation it has had in the community. He has organized gaming tournaments such as dota 2, Super Smash Bros. and Counter-Strike, among others. However, the company has made the difficult decision to lay off its staff due to the current economic conditions.
In his statement, David Gorman has stated that bts He has worked hard to create a business avenue that would allow them to survive, but unfortunately, it has not been enough. Although the company has enough capital to stay afloat, management has decided to use the funds available to offer the best possible solutions to its workforce.
The company will keep its staff on the payroll for the next two weeks and will offer two weeks’ severance pay, plus additional severance pay based on the length of time each employee has been part of the organization. BTS will also be in charge of paying healthcare for all employees until the end of April, it says.
It has also drawn up a list of employees that can be accessed by anyone interested in hiring its former staff. Likewise, he has confirmed that the last event he will hold will be the Smash Ultimate Summit 6which will start at the end of March.
That BTS has fired all its staff has been a blow to the eSports community, which has shown its support through social networks. However, the company has received praise for its humane approach in treating its staff, which reflects its commitment to its employees.
Are hard times coming for eSports?
This phenomenon of difficulties in many companies related to eSports events has already been baptized in the English-speaking media as ‘sports winter‘. Another company called The Guard went out of business a few weeks ago.
“Esports winter is upon us. Like many companies that rely on advertising, eSports organizations are preparing for the worst. Our GamesBeat Summit Next 2022 panel, “Navigating the eSports Winter,” all but confirms this forecast. FaZe Clan’s Erik Anderson, Vindex’s Ryan Fitzpatrick and Gen.G’s Arnold Hur joined GamesBeat’s Jordan Fragen to talk about how esports companies are sheltering in the cold. and Erron Kelly, specialists from the Venture Beat portal.
This recent phenomenon can be explained by the decrease in concerns about the coronavirus pandemic. “Views of live broadcasts are declining from the peaks they reached in the pandemic era. At the same time, advertising budgets are being cut in anticipation of a recession,” they analyzed.
“This means less money coming in overall for businesses that rely on advertising, such as eSports organizations. These often rely on sponsorships as their main source of income, making them less resilient to these cuts (…); and the same happens with the publishers”, they complemented.