Gfinity Esports Australia will cease operations from the end of November 2019.
Best known for Its Gfinity Elite Series, the company was established in August 2017 by HT&E Events and Gfinity Plc. In partnership with Hoyts, a new state of the art esports arena was created to host tournaments.
Despite setting a record in Australian esports sponsorship revenue, the country’s competitive gaming market has failed to develop to the level the company projected when it began in 2017.
The Supercars Eseries will finish up in November, making it the final event the company will host.
“Esports remains an exciting industry with significant global interest and activity and HT&E believes it will become a mainstream and significant content-audience-commercial medium in the long-term,” said HT&E CEO Ciaran Davis.
“But our absolute focus is on our core radio business and 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.”
Gfinity executive chairman Gerry Cook added: “The decision to close the business was not taken lightly. Our team and all key stakeholders are pioneers in building a market leading, competitive gaming operation in Australia and I would like to thank them for their commitment and dedication.”