Community Gaming, a Web3 esports tournament platform, has laid off 17 employees, which represents over 17% of the company’s head count. The CEO Chris Gonsalves said that the economic downturn in the esports industry has forced it to restructure its goals for a stronger future. Gonsalves founded Community Gaming because he believes that the esports industry has a payouts problem and wants to offer faster crypto payments to tournament winners. However, the crypto market may be recovering slightly as Bitcoin surpasses $30,000, and Ethereum rises above $2,100, but the esports industry is going through a recession due to broader market conditions. Esports teams are struggling to diversify their revenue streams after being overly dependent on sponsorship funds. The pandemic also threw a major wrench into many live esports plans, potentially impacting expected revenue streams, as well. Community Gaming still sees Web3 as a light at the end of esports’ currently dark tunnel. Gonsalves thinks that Web3 can play a part here for esports orgs to build tech that synergizes well with new games that are more open with their IP. For now, everyone is going through a rough year, and the overall game industry is taking a breather after massive growth experienced throughout the pandemic, and companies will need to be more conservative.
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