The esports industry is evolving fast — and August gave us two stories that show just how fragile, yet full of potential, this sector really is.

On one hand, OG Esports secured new investment from Chiliz Group, leaning into fan tokens and Web3 as a fresh revenue stream. On the other, Guild Esports shut its doors, a stark reminder of how overreliance on sponsorship can leave even the loudest brands exposed.

For OG, the move with Chiliz is more than a partnership; it’s an experiment in diversification. Fan tokens may not be universally loved, but they represent a willingness to try new models that extend beyond broadcast sponsorships.

Guild, by contrast, entered the scene with fanfare — the David Beckham licensing deal made headlines — but it may have saddled them with costs that were hard to escape. Add to that a model reported as almost entirely dependent on sponsorship, and the collapse feels less surprising.

The message is clear: sponsorship alone is not enough. This isn’t new, the validation continues to get stronger.

We all know organisations that thrive are those that spread their bets. G2 Esports and HEROIC are proving that innovation can come in various forms. While G2 continues to thrive through bold diversification, HEROIC is demonstrating how staying true to your core strengths can lead to profitability. (take a look back here).

OG’s fan token play adds another chapter — risky, but forward-looking. And events like Red Bull Kumite or the Esports World Cup underline the value of experiences fans can attend, not just watch on a stream.

Challenges remain, of course. Sponsor dependency still sits at the heart of most esports P&Ls. But emerging plays are giving organisations new tools: mobile esports is booming, AI is opening fresh ways to engage fans, grassroots ecosystems like our own Ireland Esports Leagues are building sustainable pathways and digital assets are testing how loyalty can be monetised.

The orgs willing to adapt, diversify, and balance community with commercial ambition will be the ones that thrive.

The lesson from August? Diversification isn’t optional anymore.

Guild showed us what happens when sponsorship is the only leg to stand on. OG, G2, Heroic and others are proving there are more ways to build resilience. And that’s why we built Ireland Esports Leagues the way we did: reinvesting at the base through Schools and Collegiate, while converting that momentum into revenue through the Company Series.

It’s a local model for now — but one designed to scale.

Want more like this? Subscribe to the Nativz Business Update — monthly insights on how we’re building the future of esports, from Ireland to the world.