One of the biggest problems to me, specifically for fighting games but also applies to many genres, is the absurd amounts of money. Smaller scenes are going to see a fall off in the number attending as people will need to save money to go to Saudi Arabia every year for their chance to win big. If it continues, it will fully kill the smaller scenes and new talent will be much, much harder to find. People are going to have to become known through online and that is nowhere near the same consistency as in person at smaller events. A lot of people who are poorer will simply not be able to go to these events in Saudi Arabia without sponsors and local tourneys won't exist.
TO's are also going to be massively impacted by this, many of them will simply have to change job because they won't be getting the same numbers of entries which means less sponsors which means no money to run the event. Video games should not have a "hub" for esports. Video games are world-wide and cannot be condensed into a smaller area without the need for lots of money on both the country, which yes they are willing to invest but also the competitors. I really hope this shit stops because it will hurt the general population of many big titles' esports players, so many people won't be able to compete that should get the chance to compete. Esports will become a "between the richer people, who is the best?", rather than simply who is the best.