Danish entertainment companies Parken Sport & Entertainment (PS&E) and Nordisk Film decided to dissolve the esports team and company to focus on their core business.

The decision was made as a result of the negative financial impact on the entertainment industry during the global health crisis. 

"North Esports will require significant continued investment to create a sustainable business in the future," said North Esports chairman and PS&E chief executive Lars Bo Jeppesen. 

"There is still potential in esports and gaming, but the time horizon is long and uncertain."

Jeppesen added that he had sought out more co-investors for North Esports, but was not successful in his search. 

Prior to its dissolution, North Esports had teams in competitions for video games CS:GO, Apex Legends, and FIFA. 

Its FIFA roster will be taken over by the affiliated FC Copenhagen and will continue to take part in the eSuperliga, while North Esport's other activities will be gradually discontinued. 

Despite the virtual nature of esports, several tournaments have been postponed or cancelled due to the pandemic, including the Asian Electronic Sports Federation e-Masters Chengdu event. 

A spokesperson from esports company Unikrn also recently claimed prize money at esports events had dropped by 76 per cent from 2019 to 2020.