A troubling trend is emerging in the Battlegrounds Mobile India (BGMI) esports ecosystem. Over the past year, a staggering 18 prominent esports organisations have ceased their BGMI operations. Surprisingly, this decline comes at the heels of the success of the most recent official BGMI tournament—BGMI Pro Series (BMPS) 2024, which set a record for the highest concurrent viewership in the game’s history. This dichotomy begs the question: is this a wake-up call for Krafton India? Let’s delve into the factors behind these alarming closures.
The Sudden Shutdowns – What’s Going Wrong in the BGMI Esports Ecosystem?
Financial Strain
One of the most significant reasons for the mass exodus of organizations from BGMI esports scene is financial strain. Prominent organisations like TSM, OR Esports, Gladiator Esports, Velocity Gaming, and Entity have burned substantial resources into BGMI esports. Orgs have invested lakhs of rupees in hopes of profitable returns. However, the expected revenue has not materialised. Maintaining tournament prize pools, operational costs, and player salaries has proven to be an uphill battle. As these organisations grapple with mounting expenses and diminishing returns, many have concluded that it is more prudent to halt their operations rather than continue to incur losses.
A widely recognized challenge in the esports industry is the increasing salary demands from players, which has intensified the financial burden on these organisations. Prominent personalities in the community, including S8UL Esports’ Co-owner 8Bit Goldy, Global Esports’ CEO Rushindra Sinha, Enigma Gaming’s CEO Aryaman Wasan, renowned content creator Scout, and multiple other prominent personalities have openly discussed these escalating demands, emphasising that they may threaten the sustainability of various teams.
Moreover, figures like Ghatak have also voiced their concerns about the industry’s sustainability, underscoring the need for a more robust ecosystem. Sid, the manager of iQOOSoul, has urged Krafton to engage with key stakeholders to facilitate discussions aimed at creating a sustainable competitive landscape.
While recent tournaments have boasted impressive prize pools of ₹1 crore and ₹2 crore, the reality is that relying solely on these figures is not sufficient for long-term sustainability. A stable financial structure is essential for organisations to manage their operational costs and player salaries effectively.
Cheaters and Other Issues Marring the Game
Another critical challenge impacting BGMI esports is the persistent issue of cheating and hacking. Since the game’s launch, these problems have plagued the community, creating an environment rife with distrust. Players often face gameplay disruptions due to lags and glitches, undermining the integrity of official tournaments. Cheaters have infiltrated not only online events but have even qualified for LAN tournaments, raising serious questions about the competitive fairness of the game.
Read: Scout Voices Frustration Over Growing Hackers in BGMI
This rampant cheating affects organisations that invest heavily in their players and teams. When cheating compromises a team’s ability to showcase its skills, the financial and operational risks for these organisations multiply. Consequently, many are adopting a more cautious approach to further investments in the BGMI ecosystem.
Read: Sid Voices Concern Over Hacking Issue in BGMI, Calls for Action
Lack of Stable Ecosystem
The announcement from Global Esports succinctly captured the prevailing sentiment: the BGMI esports ecosystem is currently “immature and unstable.” This instability is a primary reason behind the withdrawal of numerous organisations. There is a glaring absence of long-term planning and structured tournaments, leaving many organisations hesitant about investing further.
Since the relaunch of BGMI, a clear roadmap for the upcoming year has been conspicuously absent. This lack of clarity not only creates uncertainty but also makes organisations wary of committing their resources in a landscape where the future remains unpredictable.
Government Regulations and Bans
The esports landscape in India is also fraught with challenges stemming from government regulations. In September 2020, the Indian government imposed a ban on PUBG Mobile due to national security concerns, a decision that reverberated throughout the gaming community. Although Krafton managed to launch BGMI in July 2021, the shadow of potential bans has loomed large ever since. The indefinite suspension of BGMI by the Indian government in July 2023 added to the uncertainty.
While the game returned in May 2023, the scars of previous bans have made organisations more cautious about investing in a game that could face government scrutiny once again. The fear of a sudden ban creates a paralysing effect on organisations, dissuading them from taking risks in an already volatile environment.
Management Issues and Payment Delays
Management challenges and payment delays have become all too common in the BGMI esports scene. When tournament organisers fail to disburse prize pools in a timely manner, organisations struggle to pay their players. Such delays can severely impact player morale and performance, compounding the challenges faced by these organisations.
The ripple effect of these management issues disrupts operational stability. Maintaining a healthy cash flow is vital, and when organisations cannot meet their financial commitments, the entire ecosystem suffers.
Uncertain Future
The mass shutdowns of prominent organisations send a disheartening message to players and fans alike. The ongoing uncertainty surrounding the future of BGMI and its competitive scene raises concerns that could dissuade new investments and commitment from remaining organisations. As the landscape becomes increasingly precarious, many may find themselves forced to exit, exacerbating the cycle of instability.
Record Viewership – A Silver Lining or False Hope?
In contrast to these troubling developments, the BMPS 2024 tournament achieved remarkable success, boasting a prize pool of ₹2 crore and recording over 500,000 concurrent viewers—an unprecedented milestone in BGMI history. However, it is crucial to understand that high viewership does not equate to a thriving esports ecosystem.
While the surge in viewership may indicate interest in the game, it does not guarantee financial health for organisations. Without substantial sponsorships and consistent revenue streams, the high viewership figures will ultimately prove unsustainable. The esports ecosystem needs to engage sponsors and brands effectively, as their investment is essential for long-term viability.
The road ahead for BGMI esports appears fraught with challenges. Despite record viewership numbers, the underlying issues of financial strain, cheating, regulatory uncertainty, and management problems remain significant barriers to sustainable growth. As the community grapples with these challenges, it is imperative for Krafton and other stakeholders to come together and develop a cohesive strategy that addresses these issues head-on. Only through collaboration and a commitment to building a stable ecosystem can BGMI esports hope to emerge from this crisis and secure a brighter future.
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