Riot Games – How Two Business Majors Changed An Industry

Riot Games – How Two Business Majors Changed An Industry

As a seasoned gamer with decades of experience under my belt, I can wholeheartedly say that League of Legends (LoL) is not just a game, but a testament to the power of vision, determination, and a dash of audacity. The story of its creation, as told by Going Indie, is one that resonates deeply with me, reminding us all that even the most seemingly insurmountable odds can be conquered if you’re willing to take a leap of faith.


Without question or debate, League of Legends stands as one of the most significant video games ever developed. Launched in 2009, it continues to thrive, boasting a consistent player base and attracting fresh gamers each month who are eager to give it a try for the first time.

In this discussion, I will share with you the fascinating tale of how League of Legends rose to become the most popular multiplayer game ever made, and explain what keeps players drawn to it.

Two Visionaries With A Fresh Idea

Everything began back in 2006 when college roommates Brandon Beck and Marc Merrill discovered a common interest – they both enjoyed playing the Defense of the Ancients mod in Warcraft 3.

As a dedicated fan, I must admit that while DotA wasn’t the initial MOBAs pioneer, it significantly molded the genre into its current form. However, in those days, accessing DotA was a challenge for many players like myself due to its limited availability.

Riot Games – How Two Business Majors Changed An Industry

Initially, you were required to purchase Warcraft 3 at its full cost. After that, playing DotA required navigating through the game’s custom browser, which was somewhat complex. Lastly, finding matches wasn’t as straightforward; instead, you had to search for opponents across an online forum because the mod didn’t include automatic matchmaking.

Merrill and Beck recognized a great deal of promise in the game, yet they were mindful of its limitations, particularly concerning accessibility. Their ambition was to develop a version of the game that functioned more smoothly, however, they both lacked expertise as game designers.

In September 2006, within the walls of a former machine workshop, Riot Games was established by business graduates from USC who had a strong enthusiasm for gaming. They needed to hire staff due to their shared passion.

Right from the get-go, the team got down to business on a game initially known as Onslaught. Their goal was to unveil this game at the 2007 Game Developers Conference held in San Francisco.

Beyond the appeal of the game itself, Merrill and Beck, with their backgrounds in business, conceived a unique approach: they decided to make the game available for everyone to play at no cost. The rationale behind this was to lower the price as much as possible, thereby increasing the demand for it.

It was clear that the model had already demonstrated success in Asia, yet many figures within the Western gaming sector were skeptical about the profitability of free-to-play models.

Despite this, Merrill and Beck persisted in their vision, leading to no publishers within the industry being interested in collaborating with them. Consequently, they chose to publish the game independently.

Following a direct approach with potential investors, Merrill and Beck were successful in identifying supporters willing to finance their venture, as they felt confident that their business concept had merit.

Despite League of Legends: Clash of Fates not being fully prepared at the time, the investors stayed committed due to the compelling vision.

Riot’s Competitor

Another issue arose in the form of Heroes of Newerth, or HoN.

S2 Games recognized the promise in DotA and ventured into creating a Multiplayer Online Battle Arena (MOBA) of their own. With a greater background in video game development compared to Riot, their creation stood out distinctly as more polished.

Riot Games – How Two Business Majors Changed An Industry

At the same instant, two Multiplayer Online Battle Arena (MOBA) games simultaneously released their pre-releases. However, it was Heroes of Newerth (HoN) that attracted twice as many players as Riot’s game. Interestingly, Riot had an advantage due to the announcement made by S2 Games that Heroes of Newerth would be a full-priced game.

As a result, nearly half of HoN’s player community switched over to playing League of Legends right away. The novelty of League of Legends was so great, especially considering it was a free-to-play game in the western world at the time, that upon its launch, it quickly became incredibly popular and attracted many players eager to give this new game a try.

In its initial year, League of Legends generated approximately $1.3 million, then raked in around $17 million in its second year, and ultimately brought in a staggering $85 million in its third year. Clearly, this game saw tremendous success.

What made Riot Games and League of Legends stand out among other developers and games was that Merrill and Beck grasped a concept that eluded many others – the business strategy of offering the game for free to players.

Consistently introducing new character skins and champions generated significant revenue, but it was a specific game mode that truly revolutionized the situation.

Ranked Play ELO System

Prior to that point, no other game employed such a system. Riot Games, however, consistently demonstrated an understanding of what motivates people to play video games; it was primarily about fostering a sense of competition.

As a dedicated League of Legends player, climbing the ranked ladder has only made my gaming obsession grow stronger. It’s thrilling to have a path for advancement and the chance to measure my skills against other gamers out there.

Additionally, this marked the beginning of professional League of Legends gaming. Through substantial investments in esports, Riot significantly boosted the game’s popularity.

Riot Games – How Two Business Majors Changed An Industry

It was their comprehension of the financial model that allowed competitive League of Legends to thrive. They recognized that they wouldn’t gain immediate profit from these massive events. Instead, they chose to incur losses, focusing on boosting the League of Legends brand, which ultimately led to increased earnings from selling skins.

These tournaments are meticulously organized with massive prize pools due to the substantial financial investment made by Riot Games in them.

Essentially, Marc Merrill and Brandon Beck harbored a dual ambition, not just for creating a game, but also for establishing an innovative business structure. Their path to success stemmed from their unwavering commitment to their idea, placing all their chips on one bet: The free-to-play model.

Riot Games and League of Legends have maintained their success by constantly innovating their brand in numerous imaginative methods, such as partnering with musicians to create the annual Worlds theme song, or collaborating with Netflix on Arcane. These strategies are what set them apart.

They weren’t building a game, they built a brand.

Huge credit goes to Going Indie, whose video inspired this love letter to LoL.

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2024-08-30 16:10