Katana Gaming to close down, cites lack of investment in UK esports as reason

The business of esports is a tough nut to crack, and we frequently see organisations either closing down or being acquired. Today's news relates to the former, as the UK-based Katana Gaming has announced its intention to cease operations and shut down.

In a lengthy statement, Katana CEO "Heffy" has shared some reasoning behind this decision. "From a business standpoint, esports/gaming especially for the EU/UK is a brutal space. It's often unrewarding, draining and in many ways, unsustainable. Call of Duty Challengers is a charity. The scene for some time now has been withering away due to no investment or consideration from the powers at be. Most of the amazon individuals and orgs still involved, do so out of pure passion and love for Call of Duty. The majority of them spending significant amounts of time, money and energy for little or no return."

Heffy continues, "Every part of Katana Gaming, Content, Esports, Events and Community has been a constant uphill battle to monetise or even make sustainable. Sponsors are like gold dust, many of which don't have the capability to provide cash investment only products. Given we are on the brink of another global recession I don't foresee any uptake or investment in UK esports any time soon."

As for what this means for Katana, the organisation will fulfill its outstanding commitments, appearing at the ESHUB LAN event in June, and the Elite and Miami tournaments for Challengers too.

Heffy signs off by stating, "I'll still be around here and there if anyone ever needs me. And who knows, maybe Katana will return one day."