After a seven-year run, Sprout Esports has made the decision to cease its operations. The announcement came through the organization's official social media channels, citing an inability to sustain its business model any longer.
(Photo : SPROUT ESPORTS / Screenshot taken from the official website.)
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Unsustainability Leads to Closure
According to a report by EsportsInsider, Sprout revealed that despite exploring alternative strategies to boost success, such as increasing incentives, the risks associated were deemed too high. The organization stated, "Embracing a model that deviates significantly from our established approach has been deemed too risky for us to pursue."
Since its inception in 2017, Sprout Esports has struggled to maintain its operations. The closure underscores the challenges faced by esports organizations in navigating the competitive gaming landscape.
Continued Downturn in Esports Sector
Sprout's closure aligns with a broader trend of closures and layoffs within the esports industry. Earlier this year, Riot Games announced significant layoffs affecting 11% of its workforce, while UK-based Vexed Gaming revealed plans to shut down.
Despite Sprout Esports shuttering its main operations, the organization has pledged to continue supporting its sim racing division.
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