Jack Etienne has stated that Cloud9 is back to profitability, having weathered the esports winter. Meanwhile, many of his contemporaries have failed to do the same.
Jack Etienne, the CEO of Cloud9 has stated his company is now “back to profitability” in a post made on Jan. 1. The post, made on the first day of the year described 2023 as an “incredible year” that happened “despite difficult conditions in our industry.”
The statement comes after what many have called the first year of the “esports winter,” a market correction in the space which has seen teams shutter, mass layoffs, and organizations fold amid rising costs, departing investors, and cases of mismanagement.
“2023 has been an incredible year that brought Cloud9 back to profitability despite difficult conditions in our industry. I’m blessed and grateful to be working with exceptional players, staff, and partners with the best fans in the world!
Happy New Year!”
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Cloud9 surviving esports winter
In 2023 alone, half a dozen teams were shuttered or suffered mass restructuring. The Guard ceased trading early in the year. FaZe Clan’s stock market experiment exposed a struggling business. Astralis, a publicly traded company, faced struggles. Counter Logic Gaming was sold to NRG and then shuttered. Golden Guardians, and LCS team operated by the Golden State Warriors, also completely ceased trading. And Evil Geniuses saw massive
The statement in profitability from Cloud9 also comes as a new report by Richard Lewis exposes yet more mismanagement by the highest echelons of the EG organization. According to that report former CEO Nicole Lapointe Jameson authorized lavish spending on flights, hotel accommodation, where expenditure in 2023 from the CEO positions mounted to $17,037.82 in just two months. This was reportedly during a period where EG was already tightening the belt and cutting costs. In August 2023 Nicole Lapointe Jameson departed the organization amid controversy. EG continues its devolution.
In contrast, Cloud9 has maintained modest success during the industry’s contraction. The company recently acquired EG’s BLAST Premier Member Team slot, revealed a sponsorship deal with Kia America, and continue to compete in major titles including League of Legends, VALORANT, and Counter-Strike.
Overall, the message from Jack Etienne, while biased, will be a relief to Cloud9 fans, who will be happy their team is weathering the storm of esports winter well.
Cover image via LoL Esports Flickr.
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