I don't think sc2 is dying, but from a spectator perspective it seems like Blizzard either lacks understanding of esport development and how to expand on its impact to generate revenue, or they simply chose not to prioritize it as important source of revenue.
But looking back to the days of BW and WOL beta, there were several things that did not happen, which, if they did, would have resulted in immensely more popularity for SC2 without any Blizzard contribution (at least imo):
-Having foreigners compete at the same level or even above the level of Koreans. During WOL beta this was TRUE, and many people expected this to carry forward. With Idra, TLO, Jinro competing in GSL it seemed as if foreigners would finally have a solid stance in this Korean dominated esport. Of course, this did not happen, as Koreans eventually outclassed the majority of foreign players. Considering that the GSL was the most prestigious tournament with the biggest prize pool, if foreign teams had players that were solid GSL champion contenders, I think it would have greatly helped the esports scene. (Imagine if Idra wins a GSL, how much would that impact the community?)
-Lack of competent/experienced team management and sponsorships. I think this was a letdown to many spectators and players alike. The fact that there were few legally binding contracts, and that startup teams were prone to over-reliance on electronic messaging services (AHEM Skype chat), simply showed a lack of professionalism. On top of that, there were sponsorship issues and controversies. Those things were not helpful to establishing a foreign competitive scene and unattractive to foreigners trying to go pro. I don't blame the numerous people for trying to do business in this environment with no business experience. It is understandable as the whole esports scene is extremely new. However, I do believe a lot of luck is needed to have someone who is both CAPABLE and PASSIONATE, and looking back at the waves of teams that have risen and fallen, I think SC2 simply was not lucky enough.
-Casting. This might be the most controversial point, but I, personally, strongly believes that SC2 in general have lackluster English casting. TheMarine (famous Korean Sc2 caster) said in his recent interview that it is the caster's job to make the game exciting for the audience, to go beyond the obvious and prevent the game from going stale. This is something that I agree with completely, as casting is the bridge that connects the competitive with the casuals. To put it as frankly as I can, English casting is monotone, boring, and not even very insightful. I simply cannot get my friends to sit down and listen to a casted game. The bus-stop conversation of english casters simply make it a nightmare for me to introduce a game to a group of audience. I think the type of audience attracted to the game, and the community's perception of the gameplay, is directly connected to how the casters cast the game. Right now, English casting mainly attracts people who already have some understanding of the game, and what's more, I believe that a majority of balance discussion/whines/cries are also tied to casting. Basically, English casting is very good at explaining the obvious and as such, audiences do not really gain an insightful understanding of all the aspects of the gameplay. For example, many casters are really good at pointing out that a protoss deathball is steamrolling the opponents army, that the opponent do not have enough vikings/good counters etc. However, many fail to describe the many intricacies that the protoss players have made, which allowed the player to build up such a strong army at that point. Subsequent balance discussions should NOT be about whether protoss deathball is OP or not, but whether if it is easier for protoss to achieve the intricacies that lead to such a strong army, than for the opponent to prevent the protoss from doing so.
Anyways, I can go on and on about English casting, but I'm tired so I'm not going to :p
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