Join gaming leaders online at GamesBeat Summit Next this upcoming November 9-10. Learn more about what comes next.
Behind-the-scenes drama has ended a Counter-Strike: Global Offensive tournament before it could start.
The Professional Esports Association (PEA) today announced that it is suspending its plans to run a league for Counter-Strike: Global Offensive, a team-based shooter that’s one of the most popular games in the world. It said it made the decision after a majority vote by players of its teams, noting in a press release sent to GamesBeat that “there isn’t sufficient financial support in the ecosystem, either from broadcast/streaming partners, sponsors, or others, to profitably operate a third prominent online league, due to the oversaturation of the marketplace and the recent upward spiral in operating costs.”
Esports is becoming a big market, with an estimated $892 million in revenues in 2016, according to market researcher SuperData Research.
In December, many of the PEA’s teams protested with an open letter when the organization made a rule that its competitors could not participate in the ESL Pro League tournaments for Counter-Strike: Global Offensive. PEA defended itself by saying that an oversaturation of leagues featuring the same teams would be bad for its business and that it did not want its players’ schedules to grow overloaded.
Three top investment pros open up about what it takes to get your video game funded.
“Though the agreements which the players negotiated and signed with the organizations give the organizations the right to decide where players compete (as with all team sports contracts), the PEA organizations decided to do the PEA CS:GO league only if a majority of the players said they wanted to play in PEA rather than EPL,” the PEA noted in its press release.
Those teams chose EPL, which recently changed the prize pool of its tournament from $750,000 to $1 million per season. It also announced a plan to share 10 percent of gross revenues with non-WESA (World Esports Association) teams, which PEA says “half of which was promised to the seven PEA organizations and players.” PEA also said that those organizations would not receive the revenue percentage unless they agreed not to play in PEA’s CS:GO competitions for two years while committing to EPL for the same time period.
GamesBeatGamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. How will you do that? Membership includes access to:
- Newsletters, such as DeanBeat
- The wonderful, educational, and fun speakers at our events
- Networking opportunities
- Special members-only interviews, chats, and "open office" events with GamesBeat staff
- Chatting with community members, GamesBeat staff, and other guests in our Discord
- And maybe even a fun prize or two
- Introductions to like-minded parties