With all esports events as part of Gfinity Esports Australia
to cease operations in late November 2019. As for the reasoning the press release notes, "the esports market in Australia has not developed to the level forecast when the company was launched in 2017". The news comes alongside partner HT&E Limited posting a $5.3m loss on investments, hinting at the local Gfinity endeavour losing money since its launch.
In a statement, Gfinity Esports Australia's chief makes a point to highlight the staff that will be losing their jobs based on closure whilst noting that existing events will continue as planned.
“We would like to thank all our stakeholders and the Australian esports community for their support over the last few years. This is a very difficult announcement for all our staff. We will continue to meet our obligations to our existing partners, including Supercars with the upcoming Gfinity Supercars Eseries, and deliver outstanding events until we close later this year,” Dominic Remond, Chief Executive Officer of Gfinity Esports Australia said.
In an additional statement, Ciaran Davis of HT&E said, "The economics of esports in the Australian market are yet to deliver sustainable, positive earnings. It is critical our investments deliver value for shareholders and with esports there is no certainty on when a positive contribution might be achieved.”
So then, what does this mean for esports in Australia? Sad news to be sure, especially for those close to Gfinity and its local tournaments. That said, events like IEM Sydney and the upcoming Melbourne Esports Open alongside global tournaments that Australia takes part in still paint the picture of a thriving and far reaching esports scene.