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Great article, we need more like those. New details uncovered by The Information put a spotlight on how the two companies have clashed.
The hire was later reassigned and a new person was appointed to appease Tencent. Riot has been forced to pare costs and lay off hundreds of employees worldwide.
Tencent has been careful to cultivate a portfolio of other titles that can pick up the slack. Riot executives insist relations with Tencent are good.
In an interview with The Information, Mr. Laurent acknowledged the tension over the Hong Kong office incident, but said it was small relative to the overall relationship.
This article is based on interviews with more than 40 people close to Riot and Tencent, all of whom spoke on condition they not be named, as well as a review of documents and regulatory filings.
Riot, which was founded in by Mr. Beck and Marc Merrill, only has one hit game, League of Legends. It is part of a genre known as multiplayer online battle arena, where players control a diverse set of characters that fight for control of a map.
The game was released in in the U. But Tencent got involved much earlier. In , right before League was released in the U. Two years later, after watching the game take off in the U.
The remainder was held by the founders and employees, who wanted to keep at least some equity. That deal would prove pivotal in what was to come.
The fifth seat was empty, a structure which remains in place. Merrill said in an interview with The Information. In late , seven months after Tencent took control of Riot, League was finally released in China.
The China launch turned League of Legends into a monster hit. Riot announced it had 32 million monthly users in October and 67 million by January At its peak popularity in , the game averaged million monthly players, with the bulk of those players in China, according to people close to Riot.
As League of Legends began printing money, Messrs. To keep up with the fast-growing number of players, Riot had to ramp up spending on everything from the number of servers to game development and player support, paying top dollar to attract new employees.
Riot opened offices in more than 20 countries, staffing locations like Dublin, Mexico City and Istanbul with dozens of employees tasked with marketing, localizing and publishing the game.
Its workforce grew to almost 3, from about in Employees had access to a free cafeteria, a pirate-themed barista, a movie theater, meditation rooms, parking attendants and even a zen master.
A falconer came several times a week to shoo pigeons away. For one Christmas party, Riot filled a campus basketball court with real snow.
But tensions also simmered. That meant it had to cover its spending with the money it brought in from League of Legends.
That frustration led to the effort to open an office in Hong Kong. He took steps to legally register Riot in China so it could run competitive gaming known as esports and sell merchandise.
Instead, executives struck deals with various services to reach as many players as possible. Differences also cropped up over how to handle the fast-growing mobile market.
Tencent wanted a mobile version of League for China, according to people close to both companies. Chinese internet users were spending more time on mobile phones than PCs, and Tencent advocated for a more casual smartphone game with shorter play periods that gamers could play during morning commutes.
Top executives believed Riot should only make games for hardcore gamers who played on PCs and consoles. Laurent said in an interview that Tencent never formally asked Riot to make a mobile version of League.
Tencent decided to craft its own mobile version of the game, Honor of Kings. Released in November , it sparked an uproar back in Los Angeles when Riot employees discovered early screenshots of it.
Employees at company-wide meetings asked Messrs. The founders responded they were working to educate Tencent on the proper use of IP and that Tencent explained it came from an independent Tencent-backed Chinese studio.
Kings became a monster hit for Tencent in China, much to the chagrin of Riot executives, according to people close to Riot.
A year later, its popularity soared even higher: Tencent said Kings was the most popular smartphone game in China by the end of The tensions, including the earlier hiring incident, culminated in late with Tencent negotiating a truce.
Meanwhile, Riot agreed to stop trying to interfere with how the game operated in China. Tencent agreed to give it control of esports and merchandise, running both out of an office in Shanghai.
In early , Riot transformed its Hong Kong office into an international game-development studio, pivoting its focus away from China. Some Riot employees held options with strike prices as low as 8.
Riot hired HSBC to provide financial advisers on site to help employees open brokerage accounts to receive Tencent shares, with lines stretching out the door to meet with the consultants.
As the golden handcuffs came off, longtime employees left in droves, with more leaving in the following six months than in the past several years combined.
Riot employees were told that although the company missed revenue targets last year, individual bonuses would be higher due to the payment.
Laurent confirmed the payment, but declined to provide figures. In , Riot employees began to notice a downward trend in players, beginning in Eastern Europe and then spreading to Russia, Western Europe, North America and finally China a year later.
Over past years, Riot has sunk hundreds of millions of dollars to explore almost every game genre imaginable. Former employees say Mr.
Amid the slowdown, Messrs. Beck and Merrill announced in October they would step down as CEO and president, respectively, to focus on game development.
Laurent was named CEO. Laurent has a restructuring plan. Since mid, Riot has laid off hundreds of employees, mostly in international offices, with the goal of rolling back costs to levels.
Satellite offices such as Dublin, Istanbul and Santiago, Chile, have shed dozens of people. Further layoffs have occurred in Southeast Asia, Brazil and Russia, with some regional offices folding back together.
In New York, an esports office has been shuttered. However, he said headcount would still grow slightly this year. It needs to be something that cannot be found easily.
Niche data or overall sector figures which are accurate are very valuable resources for businesses. We all would have expected them to have canned 2 or 3 big projects, but not that many.
All Riot had to do is water down and simplify League to gain control of it. To be honest, I was deeply surprised Arena worked.
Mostly because my older phones had mini-freezes now and then playing games. Probably because you drive to work.
Mobile gaming is huge simply because of that. Making a "big game" in terms of playerbase these days is mostly a thing of good marketing and not so much about being a good game look at PUBG, terrible in many ways at launch, but hey, Battle Royale!
In terms of playerbase, well, you can make up with good marketing and stategies. However, I can imagine that making a good game feels more rewarding than making a bad game not considering finances.
So what do you do? Do you like money or do you like making your game good? No, i live in the US. Which is not to say gambling is specific to that region, but it is a large part of the cultural backdrop.
I mean kind of. But yeah, I worked for a shelter in Fresno for a while and saw the same thing. The more I read about Riot and their attitude towards game development etc.
They certainly tried to do other games but they flopped, and none of them managed to live up to the same level as their flagship games.
I think its an overreaction by the US stock markets. They own licences to distribute in China, where policies about restricting play time for kids to 1 hour per day are being implemented.
Also the 1 hour per day are for kids under 12 years old and 2 hours per day for people aged It seems like its self imposed by tencent rather than by law.
Epic Games takes a significant cut of revenue from every single game that uses their engine. One thing that does definitely help is too polish the fuck out of your game before releasing it, which very few developers ever seem to do.
Typically because the western publishers butcher them. But this is the same for most genres. One I know of which tried to enter the market and failed was Paragon.
Barely any genre has loads of popular games because everyone tends to gravitate to a few particular ones. MMOs are the most expensive games to develop and have extremely high risk of failing.
Riot should have listened to Tencent. People would still go play on desktop when they would want. It would also attract more casual players. Not necessarily for gaming, just for action games.
Look at all the good action games on DS only played with stylus. Hell, even Zelda is playable with just touch controls. The platform is not the problem.
The problem are the app stores and the games they cultivate. There are some great gems out there, but the mobile gaming dev culture is an abomination.
Oversaturated garbage that spends more time developing microtransactions and advertising than it does on actual solid gameplay.
What would you suggest for mobile games? I played Mobile Legends with two friends and while I was bumbling around with the controls, they were tearing it up.
Technology is also another reason, a few years ago I remember a ton of my games on the phone has micro-freezes No biggie, just hit power button and the game keep going.
Probably has an English version. Epic Games was on the brink of destruction until they released Fortnite - a complete experiment that not many people within the games industry looked at closely for a long time.
Experimentation is the core of the games industry. The sad part is it was only mediocre as a whole. Many of its parts are what made BR successful. The building, gunplay, wacky weapons, and art style were all extremely solid.
Most of the game is building and editing as fast and as efficient as possible. Everything else comes way under that. League itself was far from a polished experience when it came out League even now is not a polished experience.
Polish was never what contributed to its success. This is Reddit where people crush major game studios for releasing games before they are completely polished.
If anything it seems like Riot is listening to consumers and how they hate to pre-order or pay full price for a game and get an unpolished product as a reward for supporting the company.
I mean look at how people are acting about the Odyssey event and how it shipped with lots of bugs. They probably think in terms of graphical or gameplay balance polish.
Or minor gaemplay bugs vs game crashing ones. The problem is the teams that handle bugs, UI, graphics and gameplay are all separate and operate on different timelines.
And cause of that you have spaghetti code even today and will never go away cause that early non polished code is the core of the game.
Pulling another League is a ridiculous goal. How many "Leagues" have been in the entire history of video games?
It takes much more than a superb game to reshape the industry. But yeah, experimentation is what keeps the game industry alive.
I hope Riot Games eventually releases a new game. Sure, but as it turns out most of the mechanics of Fortnite were already build in their PvE mode.
Battle Royale as a game mode is a very basic concept - a last man standing mode on a large map with floor loot. From a development perspective, the "innovations" of the BR genre like parachuting out of the sky and closing storms are pretty simple features to develop.
Everyone paying attention has known this, but hopefully people on reddit stop trying to deny its happening. Did anyone say LoL was dead as in already dead like Heroes of Newerth?
People said it was dying there is a difference, quit with the strawmen. I think anyone who paid any amount of attention could easily notice that there was a decline past , as that was the point where Riot conspicuously began to hide its player count and revenue, when previously it was announcing both as loudly as they could.
What surprises me is the number of people who have devoted so much time and effort in trying to deny this, though denial is certainly the first of the five stages of grief.
I also think a problem with a lot of the arguments that have been happening is that everyone seems to have a different definition for what it means for a game to be dead or dying.
There are many multiplayer games players would call "dead", even if they are still technically functional, because their playerbase is far too small to be notable.
Some games lose and regain players on a regular basis, and some games decline in popularity while still remaining at some relatively solid baseline e.
World of Warcraft, which for some bizarre reason Riot apparently wants to compete with on their new game. Whether or not that qualifies as "dying" is kind of beside the point, particularly since its decline stems from factors that need to be resolved sooner, rather than later.
What I also think the whole "is League dying? For sure, it has earned a lot of income, but in terms of business practices, it is not doing things that would be qualified as healthy or sustainable.
Leadership in particular seems to be an especially weak spot, and while perhaps Beck and Merrill may be good game designers, they are certainly not good leaders, particularly now that we know they are directly responsible for surrounding themselves with an executive coterie of unprofessional, bigoted, immature closet fart fetishists.
Why are Brandon and Mark so important that they warrant such colossal salaries..? Do they even do anything? This new franchised model would rebrand into the League of Legends European Championship, and would introduce 10 permanent partners into the league for the season and beyond.
Over the first half of , Kotaku spoke to about 28 former and current employees at Riot Games, several which claimed that female employees at Riot were being discriminated against, such as ideas from female employees being overlooked while the same ideas from male employees being readily accepted, and some female employees being groomed for more senior positions only to be passed up by a new male hire.
These employees described the environment within Riot as a "bro culture", more like a fraternity than a workplace.
All Rioters must be accountable for creating an environment where everyone has an equal opportunity to be heard, grow their role, advance in the organization, and fulfill their potential.
In a statement to Gamasutra , Hixson stated that the company is taking action based on the story and its response. Hixson stated that "our primary goal is to be listening to the personal experiences and stories of everyone that has ever been part of the Riot team" and "in instances where former Rioters are raising issues that we need to take action against, we are attempting to get in contact with them to learn more so we can take action".
Frei as a senior adviser for diversity, leadership, and strategy. Due to the Kotaku article, Riot offered a session for attendees interested in getting into the video game industry some roundtable talks and one-on-one sessions to review resumes, but only admitted "women and nonbinary" people for a majority of this period; otherwise, the sessions were made available to view online by anyone after the event.
Some of the feedback towards Riot included harassment and threats, and, in combination with events from the shooting at a video game tournament in Jacksonville, Florida the prior month, Riot plans to increase security at its upcoming events.
The lawsuit seeks to qualify it as a class-action suit, and for damages to be based on unpaid wages, damages, and other factors to be determined at trial.
Riot stated to Kotaku that there still other cases they were investigating but did not involve those as senior as Gelb, and thus would not discuss these cases publicly.
From Wikipedia, the free encyclopedia. West Los Angeles , California. League of Legends Mechs vs. Retrieved June 14, California Secretary of State.
Retrieved June 15, Retrieved July 7, Retrieved June 18, Warriors co-owner lands League of Legends franchise spot".
Retrieved August 8, Retrieved August 13, Retrieved August 29, Retrieved September 11,
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