UK-based esports organisation Rix.GG are ceasing operations, their parent company X1 Entertainment Group announced.
Canada-based X1 says it will now focus on its Rocket League news website Shift Media and talent management company Tyrus LLC, and will ‘no longer be in the business of competitive playing of video games by teams for cash prizes’.
Rix recently fielded talent in League of Legends mobile game Wild Rift and Valorant, and previously Rocket League and Fortnite.
The decision comes against a backdrop of global economic uncertainty, with the rising cost of living affecting many businesses and individuals. A major problem for Rix was ultimately a lack of revenues.
The announcement has also been made a few days after German esports organisation Cowana Gaming shut down operations, and from what Esports News UK has heard, these are the first of several orgs that may be facing closure around this time.
Other businesses in esports that have recently closed include Finest, Juked and Jaxon, and some leagues have recently been downgraded like the NLC, and the Smash World Tour was cancelled – though these are also due to factors outside of economic volatility. Earlier this year, the likes of media businesses Inven Global, Upcomer and G4 cut back.
As of today Rix will be ceasing operations.
— RixGG (@RixGG_) December 12, 2022
To every player, staff member and creator that’s been with us, thank you for making this organisation what it was.
To everyone that supported us through thick and thin, thank you.
Thank you for everything. #GatherTheStorm⚡️
This wouldn’t have been possible without the support of @X1entgroup over the course of our time.
— RixGG (@RixGG_) December 12, 2022
Although it's now coming to an end, we hope that we have made a positive impact on the esports industry.
Once again, thank you on behalf of the Rix team.
Esports orgs in general have struggled to turn a profit, and the general feeling in the industry is that esports is past its honeymoon period. The bright lights of esports’ headlines, prize pools and trophy lifts seems to be over, as investors come to realise the reality of a space where esports orgs are not seeing a great return on investment, generally speaking.
For UK orgs in particular, they may be hit hard as we move into 2023 facing a rising cost of living and energy price hike.
And outside of esports, these economic factors are expected to affect the broader video game industry with a drop in sales this year.
Aside from all this, Rix suffered a hammerblow recently when Riot ditched Wild Rift esports in the West, given Rix had one of Europe’s best teams in that game. Esports News UK understands Rix had no communication from Riot about its decision prior to this announcement.
Last month, Rix also announced the departure of their women and marginalised gender Valorant team, Lightning, with Rix CGO Zack ‘cZer’ Chandler saying they were ‘very sad to see Lightning go’, given they were the first org to sign a pro female team in Valorant.
‘I want to thank every content creator that flew our banner and showed their love for the org, and every staff member that gave their blood sweat and tears for this org. We are a family of people that cared about inclusion, fairness and respect. And that will never change.’
Zack ‘cZer’ Chandler, Rix.GG
Esports News UK understands the Rix Lightning players were on three-month rolling contracts, and there were often delays to receiving new contracts.
On the news around the closure, Rix CGO Zack ‘cZer’ Chandler told Esports News UK: “Rix was built on the fundamentals of trying to do things right in this industry, and making sure people were valued and cared after. I personally want to thank every single player that’s walked through these doors for the time they spent with us.
“Having the ability to work with talent on this scale made me truly grateful for the position I’m in. I want to thank every content creator that flew our banner and showed their love for the org. And finally thanking every staff member that gave their blood sweat and tears for this org.
“We are a family of people that cared about inclusion, fairness and respect. And that will never change.”
The conversation around forming Rix.GG began in spring 2020 between Jamie Lewis, Harry Davies and Zack ‘cZer’ Chandler, and the org then fully launched in July 2020.
Last year, Rix.GG co-founder Jamie Lewis stepped down as CEO, with Jan ‘Careion’ Hoffmann stepping in, before moving to Nigma Galaxy.
Jamie Lewis also has a separate marketing agency business, Rix Digital, which despite the similar name has nothing to do with Rix.GG.
X1 began trading shares on the Canadian Securities Exchange in July. The initial share price stood at $0.45 and is currently $0.075.
Dom is an award-winning writer and finalist of the Esports Journalist of the Year 2023 award. He graduated from Bournemouth University with a 2:1 degree in Multi-Media Journalism in 2007.
As a long-time gamer having first picked up the NES controller in the late ’80s, he has written for a range of publications including GamesTM, Nintendo Official Magazine, industry publication MCV and others. He worked as head of content for the British Esports Federation up until February 2021, when he stepped back to work full-time on Esports News UK and offer esports consultancy and freelance services. Note: Dom still produces the British Esports newsletter on a freelance basis, so our coverage of British Esports is always kept simple – usually just covering the occasional press release – because of this conflict of interest.
