In 2021, Riot was considered the shining heir, whereas Blizzard was mired in scandals. Fast forward to 2026 and Riot’s prestigious teams, such as 2XKO, are shrinking, while Blizzard is experiencing a revival. What happened? MeinMMO editor-in-chief Leya Jankowski analyses the situation.
‘This is a difficult update that I have to share,’ reads a message on the official Riot Games website. It comes from Tom Cannon, Executive Producer of 2XKO, Riot’s new tag-based 2v2 fighting game. He addresses the community directly to announce the reduction of the development team. Cannon initially left open what this means in detail.
The justification: While the game found appeal among a passionate core audience, it did not achieve the necessary long-term momentum to sustain a team of this size. Well. In other words: There weren’t enough players.
The severity of the cut was confirmed by a Riot spokesperson to Game Developer: About 80 people were laid off – which corresponds to about half of the original team. The timing is particularly bitter: This decision was made just three weeks after the release on January 20.
The fact that Riot pulls the emergency brake on a prestige project that has been in development since 2016 after such a short time is a clear symptom of a larger problem – also in the industry.
“The new Blizzard“ – Riot as a rising star
The cut at 2XKO is more than just an unfortunate headline for fighting game fans. It is the preliminary climax of a development that I did not see coming five years ago.
When I saw the update letter for 2XKO, I immediately thought back to 2021:
Riot Games was at its absolute peak. Arcane, the series about League of Legends, was a huge hit on Netflix, even becoming a cultural phenomenon outside the gaming scene. Riot Forge was a label led by Riot Games that published indie games creating new opportunities with the LoL license. This included the critically acclaimed Ruined King, which is reminiscent of Final Fantasy. Also included were the card game Legends of Runeterra and an MMO that we are still waiting for.
Riot was working on so many projects that sparked curiosity alongside their long-standing titles League of Legends and Valorant. The studio seemed to turn everything into gold.
Fans and professionals often talked about how “Riot is the new Blizzard”. I was among them, confident that Riot could only move forward from here.
It was the promise of a new era in which a studio takes the crown of the gaming Olympus while the old king Blizzard was sinking into scandals and creative irrelevance. In 2021, Blizzard came under scrutiny due to an accusation involving cocaine in the bathroom, abuse of power and sex in the lounge. The following years brought great disappointments, like the cancellation of the PvE mode for Overwatch 2. Or let’s remember the debacle around Warcraft III: Reforged.
Today, in 2026, everything looks quite different. While Riot is halving teams and cutting projects, Blizzard is experiencing a second spring.
Now I sit here, staring at the letter from Tom Cannon and looking at the words “the team will be reduced“ – and I wonder: What happened?
When the Hunger is Greater than the Stomach
The answer to the question “What happened?” is simple:
Riot Games has bitten off more than it can chew.
In its eagerness to try everything on the buffet, the studio piled its plate too high, until the first ribs fell onto the floor. The foundation began to crumble as early as 2024.
Riot Games shut down the Riot Forge label and cut 530 positions. Although the small indie gems in the Runeterra universe of League of Legends were well-received, the label was not financially sustainable. The card game Legends of Runeterra was considered gameplay-wise brilliant but also reduced to a minimum since it did not generate revenue. At least: I have heard that it is reportedly still strong as a single-player card game.
The dream of a multi-genre giant seems to be over for now. One reason for this was certainly the service trap. Operating five or six world-class ‘live service’ titles requires enormous structures and liquid funds. Each game must be supported and maintained for years.
The MMORPG project is still believed to have potential at Riot. In 2024, the LoL MMO was reset to zero and is currently busy with its reboot. They aim to develop the genre further and have not been satisfied with the results so far.
The expectations for the 2XKO team were lowered after just three weeks.
Tom Cannon’s message that the team will be reduced serves as proof. Riot can no longer afford to occupy niches that do not support themselves within a short period of time. Because even with the fighting game, it must be said that 2XKO is again a high-quality game, but developed for a niche audience.
Now they would rather focus on a selected corner of the buffet and continue to feast on League of Legends, Valorant, and Teamfight Tactics. And here I already watch with eagle eyes Deadlock, the new MOBA game from Valve, which is quietly growing into a giant – one can be curious about what this will mean for LoL.
The Blizzard Comeback
While Riot is still cleaning the plate, Blizzard seems to be triumphing again. Overwatch is doing so well with its rebranding as it hasn’t for years. The Midnight expansion in WoW with the long-awaited housing brings mostly good cheer to Azeroth. Currently, World of Warcraft is dominating on Twitch. Over 200 content creators have gathered as part of the Sauercrowd guild in the hardcore mode of the MMORPG to successfully complete the famous raid “Molten Core”.
But there was a price to pay.
One must not forget that the comeback was accompanied by massive layoffs after the Microsoft acquisition. Over 1,900 positions were cut within the Xbox division, which also hit Blizzard teams hard. The massive sexism scandal is no longer widely discussed today, but it certainly caused pain for the teams – such structural problems cannot be swept away in a few years.
As an old Overwatch fan, I rejoice in this upswing. However, it must be clearly stated that the original promise of a substantial PvE mode has been broken.
Blizzard currently seems more like the gaming giant that is a rock in the surf again. However, they have already gone through a painful process (and the accompanying shitstorm). Riot is currently in the middle of this process.
The Reality Behind the Letter
Looking at Tom Cannon’s letter to the 2XKO community, I realise that an illusion has ended.
The reality of 2026 is clear: Riot is a company with finite resources, just like Blizzard. This is especially true in a time of global crisis. While Blizzard is recovering under the Microsoft banner and regaining relevance by focusing on what works, Riot must now prove that they can endure a crisis without losing their identity in the pursuit of results.
While I eagerly await developments, such as whether Blizzard can maintain its second spring and whether Riot will ultimately shrink healthily, one thing remains clear:
I just want studios that don’t burn their ambitions at the expense of their teams and their diversity, so that in the end, they can “reduce” on their people.
