Arcane’s Season 2 received loud critical acclaim (like its first outing), but according to a new report, the series cost Riot Games so much that it fueled the company’s rushed exit from Hollywood.
The beautiful League of Legends series was definitely intended for League fans, but Riot Games surely hoped that it would drive business back into the popular game (and Riot’s overall portfolio). The second season’s warm reception was also muffled somewhat by a degree of fan backlash claiming that Season 2 felt rushed, a complaint for which series creators subsequently apologized.
A new report details Riot’s complex reaction to the series’ fate, as well as how and why Arcane forced a reexamination of the company’s growing Hollywood plans.
A beautiful and wildly expensive series
According to Bloomberg’s report, there was a lot at stake for Riot. The series was self-financed to ensure Arcane’s quality, which did result in a widely lauded set of seasons (including winning an Emmy for Outstanding Animated Program). At the same time, Riot spent about $250 million on the series’ two seasons.
These costs are half-meliorated by the distribution with Netflix and, in China, Tencent, each paying $3 million per episode. Together, these payments recoup less than half the series’ cost. In the report, a Riot spokesperson commented that “Arcane was a success when we look across all our internal measures,” elaborating that the second season is “on track to be at least break-even for us financially.”
Breaking even is a far cry from what Riot undoubtedly hoped.
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Part of this lack of profitability has to do with issues in creating tie-in items for League. League of Legends producer Paul Bellezza admitted “We were really surprised with the success of season one,” and consequently admitted that’s “why we probably missed an opportunity to do some in-game activations around it.”
While the pricey series may not ultimately lose money for Riot, the series won’t be moving ahead for Season 3, with creators explicitly noting that the two seasons told a concrete story. Meanwhile, in a year that started with 11% of Riot’s workers facing layoffs, the report indicates that Riot is giving signs of moving away from larger Hollywood plans and towards a renewed focus on its games. This is part of a general pull back from the company, which expanded its entertainment team in 2020, including adding Netflix alum Shauna Spenley with reported eyes on growing its connections to the entertainment industry. Spenley and others have since left, and its entertainment division has been reorganized, the company focusing on its core game properties:
“For us, what’s most important is fostering long-term player engagement and retention,” a Riot spokesperson told Bloomberg. “Riot’s focus has always been on creating games and experiences that players want to enjoy for years, and Arcane is part of that larger vision.”
That’s good news for League of Legends fans, and Riot is careful to avoid placing blame on Arcane (a series they widely praise, and may yet follow up with future adaptations), but being on the hook for a record-setting amount of money that didn’t quite inflate their core business undoubtedly had an impact on their return to basics.
