Riot Games may not be financially profiting from Arcane but the company has its sight set on the future. We can’t wait for what’s next.

Riot Games has built a reputation in the gaming industry as it challenges traditional corporate mindsets, prioritizing long-term value over immediate profitability. This philosophy was put to the test with Arcane, the critically acclaimed animated series inspired by League of Legends.

Riot cooked up a perfect adaptation, but it wasn’t profitable. | Image Credit: Netflix

Despite its unprecedented $250 million production cost, the show has been a massive success by Riot’s leadership. Yet, some reports claim it fell short financially. Co-founder Marc Merrill insists that it represents Riot’s mission-driven approach.

Riot Games’ Co-founder tells us exactly what the plan is with Arcane

The money you’re spending on Valorant and League is funding these projects | Image Credit: Riot Games

Bloomberg reported that Netflix and Tencent’s combined payments for Arcane covered less than half of its $250 million budget. It has been dubbed a “financial miss” because of the lack of a robust plan to recoup production costs. But Riot sees the investment differently.

Watching Arcane and then playing League of Legends is like watching Breaking Bad and deciding to try cooking meth: you get hooked on the story, but the real-life version? Not so much.

— Chavo Ξ Romano 🐿️ 🇺🇸 (@dusanzimi) December 24, 2024

Riot’s decision to fully fund and control production was a significant departure from the norm. Many gaming companies license their intellectual properties to Hollywood studios, ensuring financial safety nets. Riot, however, chose to oversee every aspect of Arcane, aiming to deliver a product that stayed true to its League of Legends roots.

Riot Games’ Co-founder Marc Merrill explained in a Reddit comment that the company’s priorities extend beyond monetary gain. “We are focused on delivering exceptional value to our audience over the long term, again and again and again.” This commitment resonates with fans, many of whom credit the show for rekindling their interest in League of Legends.

The show succeeded in boosting League of Legends’ cultural relevance and creating opportunities for future multimedia expansions. As Merrill noted, “Arcane crushed for players, and so it crushed for us.” The show may not have caused a surge in players but this shows Riot’s confidence in its long-term impact.

We can expect bigger and better projects in the future from this success

We may not be getting a third season but Riot has done its job perfectly. | Image Credit: Netflix

Riot’s profitable ecosystem of in-game cosmetics is central to its operation strategy. High-end skins, sometimes costing hundreds of dollars, have funded not only Arcane but also music videos, esports events, and other creative ventures. Merrin further addresses this to make a point, saying.

These people think we make things like Arcane to sell skins, when in reality we sell skins to make things like Arcane.

The reaction to the show has been overwhelmingly positive among fans and critics. It won multiple Emmy Awards and topped Netflix’s charts in numerous countries. Many players shared anecdotes of returning to League of Legends and Teamfight Tactics after watching the series. This surge in engagement underscores the show’s success as a cultural phenomenon.

But some argue that Riot could have capitalized more effectively by integrating themed content into the game at launch. As Riot moves forward, the company is reportedly exploring additional League of Legends regions, including Noxus, Ionia, and Demacia, for potential adaptations.

While we won’t be seeing a third season for Arcane, this success has made fans worldwide hopeful for what Riot will do next. By investing in long-term engagement, the company aims to cement its franchises as cultural staples, much like Disney or Marvel.

What do you think Riot is cooking up next? Let us know your thoughts!