Pixel P&L: Riot Fails to Boost Gaming Revenue With Arcane

We wish you and your family a merry Christmas! Here's hoping the season of joy brings you and your loved ones much warmth, love and light. 

This edition of Pixel P&L is a bit brief—just enough to keep you informed before you dive back into holiday cheer with family and friends. We’ll see you soon. Have a wonderful holiday!

Riot Games’ Arcane, a Netflix hit based on League of Legends, cost $250 million to produce and market but failed to deliver significant gaming revenue, according to a report by Bloomberg. Despite critical acclaim, Emmy wins, and strong viewership for both seasons, the series struggled to convert its audience into League of Legends players or increased in-game spending.

Netflix and Tencent paid a combined $6 million per episode, leaving Riot to cover most of the costs. Limited in-game promotions during the first season missed key monetization opportunities, and efforts tied to the recently released second season have yet to offset the massive investment.

As a result, in 2024, Riot scaled back its entertainment ambitions, pausing other adaptations and reorganizing its entertainment division. While the company introduced themed in-game items alongside Arcane’s second season, the challenge of turning TV audiences into paying players remains unresolved.

Valve released its annual “Best of 2024” report highlighting the most successful games on Steam based on gross revenue, peak concurrent player counts, and other metrics. Data collected from January 1 to December 15, 2024, revealed the year’s standout titles, divided into Platinum, Gold, Silver, and Bronze tiers. 

Notably, the Platinum tier, which features the top 12 grossing games, is dominated by titles that did not release in 2024. These include Counter-Strike 2, Elden Ring, Destiny 2, Baldur’s Gate 3, PUBG, Apex Legends, and Dota 2. However, new releases like Helldivers 2, Palworld, Black Myth: Wukong, Call of Duty: Black Ops 6, and Warhammer 40,000: Space Marine 2 also made the cut.

Player engagement remained a key metric, with Black Myth: Wukong achieving a record-breaking 2.4 million concurrent users, followed by Palworld (2.1M) and Counter-Strike 2 (1.7M). Other hits like S.T.A.L.K.E.R. 2 and Path of Exile 2 also made significant impacts despite launching late this year.

Scopely Acquires Perfect World’s Chengfeng Studio in $34.5M Deal

Most of Chengfeng’s staff, including its core team, will leave to form a new company in China, with Scopely retaining a minority stake.

In 2010, Polish television station Polsat decided not to air the beloved holiday classic Home Alone during its usual Christmas broadcast, a decision that sparked a surprising backlash. Over 90,000 fans took to Facebook to protest the move, demanding the movie’s return to the holiday lineup.

The annual airing of Home Alone had become a cherished tradition in Poland, with many families associating it with the festive season. Its absence caused widespread disappointment and highlighted the cultural impact of the film, even two decades after its release.

The uproar was so significant that Polsat quickly reversed its decision, reinstating Home Alone in its schedule to appease viewers.