Why did Riot Games shut down Riot Forge and lay off over 500 employees overnight?

Riot Games, a game developer company that also specializes in esports, recently laid off 530 employees. This action was driven by a change in direction for the company. This led to the closure of their third-party publishing division, Riot Forge, as well as the downsizing of their Legends of Runeterra teams.

Notably, it appears this decision has impacted individuals within the esports sector as well. Nevertheless, the employees affected by this turn of events have been presented with a comprehensive severance package by the company.

This piece will delve into this matter and explore why Riot Games shut down Riot Forge and laid off numerous employees overnight.

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The reason behind Riot Games' decision to close Riot Forge and lay off 530 employees

Riot Games revealed that 530 staff members will be affected by the recent layoffs. This decision also brings the closure of Riot Forge's publishing team. These layoffs constitute approximately 11% of Riot's entire workforce. In a blog post, the company stated that these cutbacks primarily target positions outside the core development teams.

The primary factor contributing to this decision is Riot's emphasis on focusing on their core live games, such as League of Legends, Valorant, Teamfight Tactics, and the MOBA for smartphones, Wild Rift. Additionally, they are prioritizing esports and events associated with these titles.

Similarly, the ongoing development of Project L, a fighting game featuring LoL characters, is reportedly advancing well. Furthermore, the second season of their Arcane TV show for Netflix is slated for release in November 2024 and appears to be progressing as planned.

As for future plans, Riot Games stated:

"Our strategy moving forward is clear: we’re honing in on what we do best and what resonates most with you. Every endeavor, from development to storytelling to competition, will be crafted to deliver meaningful, memorable experiences with games at the center."

Note that Legends of Runeterra, the LoL card game, and Riot Forge, the partnered indie developers' team that makes smaller games in the LoL universe, have been hit hard by the layoffs. Regarding the Legends of Runeterra, Riot asserted that:

"We're reducing the size of our team and renewing our focus on The Path of Champions. This shift allows the team to experiment more in the PvE space, concentrating on the game mode where players have been spending the most time. The LoR team has more details here, and we have a video planned for the coming weeks to talk more about the future."

Notably, Riot Forge is facing the most unfavorable outcome as it is being shut down completely following the imminent launch of Bandle Tale: A League of Legends Story.

Forge has played a crucial role in creating six games within the expansive LoL universe. With the highly anticipated release of Song of Nunu and the upcoming Bandle Tale, which seems incredibly promising, it seemed that Forge was finally finding its rhythm.

Riot Games has now decided to redirect its focus towards internal projects, resulting in the discontinuation of any future game development under the Riot Forge banner.

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