“League Of Legends” Tournament, The Worlds, Fails To Turn A Profit

The huge League of Legends tournament, The Worlds, took place in October, drawing viewers from all across the globe. Despite the significant viewing numbers it drew and the high prize pool at stake, The Worlds failed to turn a profit, a major concern for tournament host, Riot Games.

“If I can’t make esports a great business for teams and our sponsors, then we’re not going to last long,” said John Needham, Head of Esports at Riot Games. “We’re very much thinking about, ‘How do we make the entire ecosystem profitable?’ We’re not in the driver’s seat on when fans will be able to come back to our events. We are very anxious to bring an audience back. We will do that. But, we’re only going to do it when we know it’s going to be safe for everybody involved.”

The Worlds began as a marketing tool for the game, but many might think it has now become the focus rather than a mere mechanic to promote the title. That’s now the case, nor is the lack of profit for Riot reflective of the industry as a whole; much of it flows to the competing teams rather than the developer. While the esport has become bigger in many eyes than the title, the reality is that Riot Games still see the esports industry as a vehicle for promoting the game. They hope new gamers will be attracted to the title by staging massive events featuring the world’s best players, boosting player numbers, and improving esports standards. That’s the ecosystem Needham talks about; more players get better; people look up to them and become inspired to play themselves.

That’s not to say there is no profit at all; developers such as Riot and Activision charge teams to compete in the big tournaments and sell broadcasting rights to platforms such as Twitch and YouTube. Much of that success depends on packed stadiums and live events, which weren’t possible during the pandemic. The esports industry seemed to be pandemic proof, but it hasn’t helped profitability. Riot is not just anxious to bring people back for the experience; they plan to host the Worlds in four major cities next year, expanding profitability and reach to secure the platform’s long-term future.

(All information was provided by Technotification)