Cloud9’s CEO Jack Etienne celebrated the new year on social media by proclaiming that the esports organization posted a profit in 2023 despite the esports winter hitting in full force.
2023 was not kind to the esports industry as multiple esports organizations and companies ceased to exist through either merger and acquisition or just plain shut down. The industry downturn has been dubbed the esports winter by community members and insiders and has shown no signs of slowing down as the world enters 2024.
Esports organizations looking to weather the storm have reportedly cut back on player salaries, as well as the amount of esports they participate in. Orgs have also become more strategic about what kind of titles they want to compete in, choosing to leave esports leagues that offer little in return for investment.
However, not every company came out of the year with poor projections and finances. Cloud9’s CEO Jack Etienne claims that his organization managed to return to profitability in 2023.
Cloud9 had a profitable 2023, according to CEO
Cloud9, however, did not come away from 2023 unscathed as the company went through multiple rounds of cuts to its video, production, and streaming divisions.
The North American-based organization also released its Overwatch League roster, the London Spitfire, as the league ceased operation after the majority of its franchise teams voted to exit the competition.
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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! 🎆
— Jack Etienne (@JackEtienne) January 1, 2024
“2023 has been an incredible year that brought Cloud9 back to profitability despite difficult conditions in our industry,” Etienne said on social media.
Etienne did not specify how Cloud9 managed to post a profit, but the company’s cuts and suspected reduction in spending on player salaries might have played a role.
Cloud9 seemed to cut back on its player salary spending early on in 2023 as the organization dropped two of its most impactful players from its Valorant roster in Jaccob ‘yay’ Whiteaker and Anthony ‘vanity’ Malaspina soon after initially agreeing to terms with them. The organization also reduced the amount of esports it participated in early on in the year.
Whether Cloud9 and the other remaining esports organizations and companies, will be able to continue operating, or post profits, during this historic industry downturn into 2024 remains to be seen.