We all know that League of Legends‘ esports scheme is great. But not many might know that Riot Games is still waiting for breakeven.
As big and successful an eSports tournament is, it does not mean success in breakeven. This is what happens to Riot Games, League of Legends maker.
Riot Games’ head of eSports, Derrick “FearGorm” Asiedu shared his insights regarding this matter via Reddit. Asiedu said that Riot had spent over US$100 million annually on eSports events.
The overwhelming costs were because it was brave enough to host international events, pus with high-class venues such as Madison Square Garden and The Bird’s Nest.
However, Riot is trying to focus its events to generate more revenue.
“We’re now a mature business and costs need to be more in line with revenue in the future: Now that we’ve built something awesome, we’re going to start exercising more discipline around holding ourselves to financial constraints as revenue continues to pick up.”
So, what are Riot’s plan in the future to compensate for its finance? Well, one thing is that it will create digital experiences and securing traditional sponsorships.
“This year, in particular, is a transition year we’re experimenting with cutting back costs in some places to see how fans feel about it, but we also continue to invest a lot overall — in fact, this will be the second most expensive Worlds yet,” added Asiedu.
“To be clear, the goal isn’t to decrease our investment in esports: we want to invest even more than what we do now in the future, but only if it makes sense for the business.”
Will the phrase “Riot Games is still waiting for breakeven” be cleared in the future? Only time will tell.
Edited by Devi