Riot Games has significantly scaled back its ambitions for the fighting game 2XKO, announcing layoffs impacting approximately 80 employees – roughly half of the game’s development team. The move comes less than a month after the title’s full release on PC and consoles on .
The decision, detailed in a blog post by 2XKO executive producer Tom Cannon, stems from player engagement figures that haven’t met internal expectations. “As we expanded from PC to console, we saw consistent trends in how players were engaging with 2XKO,” Cannon wrote. “The game has resonated with a passionate core audience, but overall momentum hasn’t reached the level needed to support a team of this size long term.”
This isn’t a case of abandoning the project entirely, however. Riot intends to continue supporting 2XKO, albeit with a “smaller, focused team.” The company plans to concentrate on “key improvements” and maintain its engagement with the fighting game community (FGC), including continued partnerships with tournament organizers. “We’re reshaping the team to give 2XKO a more sustainable path forward,” Cannon stated.
The layoffs highlight the challenges of entering the fighting game genre, a space dominated by established franchises like Street Fighter, Tekken, and Mortal Kombat. While 2XKO leverages the immense popularity of Riot’s flagship title, League of Legends, translating that fanbase into a thriving fighting game community proved more difficult than anticipated.
The development of 2XKO has been a lengthy one. Riot Games acquired Radiant Entertainment, the studio founded by Tom and Tony Cannon, back in . The team spent a decade iterating on the project, initially codenamed “Project L,” before its official launch. This extended development cycle, while allowing for refinement, also likely contributed to increased financial pressure as the game struggled to gain traction post-release.
Riot is offering support to affected employees, providing opportunities to apply for positions within other teams at the company. Those unable to find alternative roles will receive a minimum of six months’ pay and severance benefits. This level of support is relatively standard for large tech companies undergoing restructuring, but it doesn’t diminish the impact on those losing their jobs.
The free-to-play model adopted by 2XKO, while common in the fighting game space, presents its own set of challenges. Balancing monetization with player experience is crucial, and a misstep can quickly alienate the community. It’s unclear whether the game’s monetization strategy played a role in the lower-than-expected player engagement, but it’s a factor that Riot will likely be evaluating as it reshapes the development team.
The situation with 2XKO also raises questions about Riot’s broader expansion beyond League of Legends. The company has been actively diversifying its portfolio with titles like Valorant and Legends of Runeterra, but the struggles of 2XKO demonstrate that success isn’t guaranteed. Each new genre presents unique challenges, and Riot will need to carefully assess its strategies and resource allocation as it continues to grow.
The fighting game market is notoriously competitive, demanding not only technical proficiency but also a deep understanding of community expectations and a commitment to ongoing support. Maintaining a dedicated player base requires consistent updates, balance adjustments, and engagement with the FGC. Whether Riot’s smaller, focused team can effectively deliver on these fronts remains to be seen.
The layoffs at Riot Games are part of a broader trend in the gaming industry, where companies are increasingly scrutinizing the performance of their projects and making difficult decisions to streamline operations. The economic climate and shifting consumer preferences are forcing developers to be more selective about where they invest their resources. The case of 2XKO serves as a cautionary tale, highlighting the risks associated with entering new markets and the importance of achieving sustainable player engagement.
