Activision’s Overwatch League Fails to Fulfill Kotick’s Vision

During 2016’s BlizzCon, Activision Blizzard Inc.’s annual event to promote its biggest video games, Chief Executive Officer Bobby Kotick held private gatherings for a handful of sports-business billionaires and people involved in the business of competitive video games, or e-sports. He pitched attendees—including his friend Robert Kraft, owner of the New England Patriots, and Los Angeles Rams owner Stan Kroenke—on his plans to start a league where teams would compete in his company’s hit game Overwatch.

The e-sports league would resemble traditional sports, with fans visiting arenas in major cities to watch live competition, while teams ...