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ESGN Studios to close, staff contracts terminated

Forum Index > SC2 General
121 CommentsPost a Reply
1 2 3 4 5 6 7 Next All
Dodgin
Profile Blog Joined July 2011
Canada39254 Posts
Last Edited: 2014-06-03 22:43:50
June 03 2014 18:11 GMT
#1
http://www.esportsheaven.com/news/view/64392

In what has proven to be a turbulent time for the emerging e-sports studio news is now filtering through that the studio is set to shut down. Recent reports had revealed that the studio had failed to pay its personnel for months, prompting a statement that they hoped to settle all outstanding debts by the end of June.


However our sources have revealed to us that whether or not this is the case the studio will be ceasing operations and has fired all its production talent. This expands to personalities such as Dan "Frodan" Chou who was seen by many as the face of the studio’s output.

It was also revealed that the studio gave no prior warning that this move was around the corner. In a move, supposedly to ensure that no equipment was taken, the studio was just locked and no-one informed. Staff turned up to the studio only to find their access denied. This has been typical of the communication barriers between upper management and staff as reported by onGamers initial report, which can be read here.

They had also recently taken the decision to cancel their upcoming $25,000 Hearthstone tournament citing a "backlog of issues" that needed resolving first.

No official statement has been passed by anyone at ESGN and it isn’t clear whether or not they will still be able to meet the promise of payment they made just a few days ago. Regardless it seems that the impact of spiralling costs amid a flawed and non-profitable business model have taken their toll and in just a little over six months the business has finally come to an end.

Expect more on this story as it develops.


Surprise!

Also I thought they didn't have contracts?!

EDIT: Article with new information: http://www.ongamers.com/articles/esgn-to-continue-on-confirms-studio-closing-dedicated-to-paying-owed-payments/1100-1649/

Representatives from ESGN have confirmed to onGamers that the studio arm of the company will be shut down effective immediately, with approximately 20 employees let go in the process. Representatives say that the company will not be shutting down and will continue with its media and business departments, the former of which contained the studio staff. The company's top executives remain unaffected along with most of those in business operations.

The studio closing was initially reported by Esportsheaven's Richard Lewis earlier today.

The move is said to have been made due to the high costs of running the studio since the launch of the company. ESGN says this move is necessary for the company to continue on, and to come through on a promise it made over the weekend to pay back owed payments to employees and contracted players and broadcasters.

"Our biggest problem right now is to reduce costs," ESGN representatives told onGamers. "Even decreasing the overhead to make content manageable is very difficult. We've made this decision because it's just too much money to keep it going. We are committed to keeping our promise of paying back everyone by the end of June, and closing the studio makes it much easier to fix the current problem."

"We had no choice but to shut down."

ESGN says that the business end of the company, which launched with content partnerships with Europe's ESL, Korea's GomTV, and China's Gamefy, will continue, but that there is no immediate plan on how to operate either the business or media arm without the operation of the studio. ESGN says that they are unsure if more Fight Night tournament content will continue, and are discussing internally on the next steps moving forward for the company as a whole.

Yesterday ESGN cancelled their upcoming $25,000 Hearthstone Champions tournament.

ESL CEO Ralf Reichert is unclear about what the future holds for their partnership.

"Honest answer is we haven't put much thought into this," Reichert said. "First and foremost we hope that all outstanding debt to players and employees get resolved and then we will evaluate with ESGN what future model is there."
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ProBell
Profile Joined May 2012
Thailand145 Posts
June 03 2014 19:18 GMT
#2
tadL
Profile Joined September 2010
Croatia679 Posts
June 03 2014 19:19 GMT
#3
Thx again to copy paste the whole source completely so that we do not have to share traffic with the real content creators. Serious that is terrible.

To the topic, isnt it strange that the next Blizzard game released a hype for organizers and already a big one failed? Strange strange. EG curse ?
Fusilero
Profile Blog Joined July 2011
United Kingdom50293 Posts
June 03 2014 19:19 GMT
#4
How could this happen, I'm utterly shocked at this completely unexpected behaviour from ESGN. I thought they and clauf were so trustworthy and legitimate I just can't comprehend what could cause this turn of events.
Glorious SEA doto
zSnowy
Profile Joined May 2011
United Kingdom51 Posts
June 03 2014 19:21 GMT
#5
Unbelievable that this happened and got this bad so fast. Everyone was calling it fishy and odd when ESGN first popped up, and this was expected, but...so fast? Wow. So sorry for all the employees.
Niko_Thien
Profile Joined September 2011
Germany2671 Posts
June 03 2014 19:21 GMT
#6
Oh yeah.."people will be paid" :D Does anyone actually believe this at this point?
@Niko_Thien on twitter!
chaos021
Profile Joined March 2012
United States258 Posts
June 03 2014 19:23 GMT
#7
On June 04 2014 04:19 Fusilero wrote:
How could this happen, I'm utterly shocked at this completely unexpected behaviour from ESGN. I thought they and clauf were so trustworthy and legitimate I just can't comprehend what could cause this turn of events.


I laughed so hard when I read your comment. I'm just curious if this was meant to be sarcasm.
Squat
Profile Joined September 2013
Sweden7978 Posts
Last Edited: 2014-06-03 19:25:18
June 03 2014 19:24 GMT
#8
I am totally shocked and appalled by this utterly unforeseen turn of events. I am also confident that everyone involved will be compensated fully within a reasonable period of time.

I mean how much longer are we going to be bedazzled by the same hucksters pulling the same old stunt?
"Digital. They have digital. What is digital?" - Donald J Trump
crunchbite
Profile Joined March 2011
Australia70 Posts
June 03 2014 19:24 GMT
#9
I thoroughly enjoyed their Hearthstone Fight Nights and thought that was the best hearthstone production by far, really sad to see that go away. Hope other companies can pick up the slack.
THELEHGOTERRAN
Profile Joined August 2011
United States1837 Posts
June 03 2014 19:25 GMT
#10
poor frodan
IMMVP // HIKARU NAKAMURA // DEREK JETER // GARETH BALE
Niko_Thien
Profile Joined September 2011
Germany2671 Posts
June 03 2014 19:25 GMT
#11
On June 04 2014 04:24 Squat wrote:
I am totally shocked and appalled by this utterly unforeseen turn of events. I am also confident that everyone involved will be compensated fully within a reasonable period of time.

I mean how much longer are we going to be bedazzled by the same hucksters pulling the same old stunt?

Any bets on how long GEM and Abuzu 2.0 will last?
@Niko_Thien on twitter!
vOdToasT
Profile Blog Joined September 2010
Sweden2870 Posts
June 03 2014 19:26 GMT
#12
On June 04 2014 04:23 chaos021 wrote:
Show nested quote +
On June 04 2014 04:19 Fusilero wrote:
How could this happen, I'm utterly shocked at this completely unexpected behaviour from ESGN. I thought they and clauf were so trustworthy and legitimate I just can't comprehend what could cause this turn of events.


I laughed so hard when I read your comment. I'm just curious if this was meant to be sarcasm.


It's sarcasm
If it's stupid but it works, then it's not stupid* (*Or: You are stupid for losing to it, and gotta git gud)
Squat
Profile Joined September 2013
Sweden7978 Posts
June 03 2014 19:28 GMT
#13
On June 04 2014 04:25 Niko_Thien wrote:
Show nested quote +
On June 04 2014 04:24 Squat wrote:
I am totally shocked and appalled by this utterly unforeseen turn of events. I am also confident that everyone involved will be compensated fully within a reasonable period of time.

I mean how much longer are we going to be bedazzled by the same hucksters pulling the same old stunt?

Any bets on how long GEM and Abuzu 2.0 will last?

Dead before September/October I think.
"Digital. They have digital. What is digital?" - Donald J Trump
Zealously
Profile Blog Joined October 2011
East Gorteau22261 Posts
June 03 2014 19:29 GMT
#14
I am extremely surprised and I can tell you that I did not see this coming in any way.
AdministratorBreak the chains
FueledUpAndReadyToGo
Profile Blog Joined March 2013
Netherlands30548 Posts
Last Edited: 2014-06-03 19:31:24
June 03 2014 19:31 GMT
#15
Damn that ship went down faster than titanic...

They had such an awesome studio and I liked their broadcasts, love Frodan's work. Sigh. They set their goals way too high it seems, but shutting down this soon means there must have been some really dillusional financial planning. Sad to see them go, sad for the staff and the players who need their bills paid.
Neosteel Enthusiast
Advantageous
Profile Blog Joined May 2012
China1350 Posts
June 03 2014 19:31 GMT
#16
On June 04 2014 04:19 tadL wrote:
Thx again to copy paste the whole source completely so that we do not have to share traffic with the real content creators. Serious that is terrible.

To the topic, isnt it strange that the next Blizzard game released a hype for organizers and already a big one failed? Strange strange. EG curse ?


honestly... what? maybe you shouldn't be making content if what you're writing is completely incomprehensible... and really? big one? maybe you should get your facts checked before making assumptions...
"Because I am BossToss" -MC ヽ༼ຈل͜ຈ༽ノ raise your dongers ヽ༼ຈل͜ຈ༽ノ I'm sure that all of my fellow class mates viewed me as the Adonis of the Class of 2015 already. -Xenocider, EG, ieF 2013 Champion.
Zealously
Profile Blog Joined October 2011
East Gorteau22261 Posts
June 03 2014 19:31 GMT
#17
On June 04 2014 04:28 Squat wrote:
Show nested quote +
On June 04 2014 04:25 Niko_Thien wrote:
On June 04 2014 04:24 Squat wrote:
I am totally shocked and appalled by this utterly unforeseen turn of events. I am also confident that everyone involved will be compensated fully within a reasonable period of time.

I mean how much longer are we going to be bedazzled by the same hucksters pulling the same old stunt?

Any bets on how long GEM and Abuzu 2.0 will last?

Dead before September/October I think.


To quote Lovecraft:

That is not dead which can eternal lie...
AdministratorBreak the chains
ssxsilver
Profile Joined June 2007
United States4409 Posts
June 03 2014 19:35 GMT
#18
I take it all the people who moved to Germany are gonna have to pay their own flights back =/...
Squat
Profile Joined September 2013
Sweden7978 Posts
Last Edited: 2014-06-03 19:41:02
June 03 2014 19:36 GMT
#19
On June 04 2014 04:31 Zealously wrote:
Show nested quote +
On June 04 2014 04:28 Squat wrote:
On June 04 2014 04:25 Niko_Thien wrote:
On June 04 2014 04:24 Squat wrote:
I am totally shocked and appalled by this utterly unforeseen turn of events. I am also confident that everyone involved will be compensated fully within a reasonable period of time.

I mean how much longer are we going to be bedazzled by the same hucksters pulling the same old stunt?

Any bets on how long GEM and Abuzu 2.0 will last?

Dead before September/October I think.


To quote Lovecraft:

That is not dead which can eternal lie...

With stranger eons death may die. Would not surprised me unduly if it turns out Cthulu ran the whole show.
"Digital. They have digital. What is digital?" - Donald J Trump
Amui
Profile Blog Joined August 2010
Canada10567 Posts
June 03 2014 19:38 GMT
#20
That was unexpected /sarcasm.
Porouscloud - NA LoL
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