Revenue cause of CGS closure
It’s game over for Championship Gaming Series.The company behind a series of televised vidgame competitions has shut its doors after two seasons, unable to raise enough revenue from sponsorships and TV broadcast deals. Backers DirecTV, BSkyB and Star opted not to continue the operation, CGS’ website said. According to a memo posted there, executives said, “Profitability was too far in the future for us to sustain operations in the interim … The economics just didn’t add up for us at this time.” In August, CGS hired Dale Hopkins, former chief operating officer at vidgame cabler G4, to serve as the company’s CEO, replacing founder Andy Reif. At the time, CGS had begun making inroads in the U.S., inking a broadcasting deal with G4 to air the league’s vidgaming competitions. Company’s competitions, which pit vidgamers from various teams around the world against one another, has a larger fan base overseas, where its TV partners included DirecTV, DirecTV Latin America, BSkyB, Star and ESPN-Star Sports.