Xbox will give Riot a minimum guarantee - this is likely forecasted based on what Riot would make in revenue (maybe a bit below). The Xbox agreement probably looks something like this: When I read the parntership announcement, I immediately thought of how Riot Games, which primarily monetizes through cosmetics is forgoing a significant revenue stream in its characters - how, then, do they plan to make any money? Does this move strategically benefit them in any way other than exposure? This is an important foundation for a healthy partnership that Xbox clearly shares. While Minecraft has no immediate relationship to the Runeterra universe, the studio shares the same player values and created the basis for an acquisition to help mutually accelerate toward respective goals. Just take a look at their acquisition of Hypixel Studios, creators of one of the largest Minecraft servers (to note: Minecraft is a Microsoft subsidiary and Hypixel may have been an important lever in these partnership discussions). This same ethos flows through Riot’s every decision, from investments to partnerships to transmedia. League of Legends was developed with the intention to create superior player experiences, putting the player at the center of everything. To set the baseline, Riot is quite picky in who they choose to partner with. The publisher brings 180M players and some of the strongest IP / brand recognition to the Xbox Games Pass ecosystem. Notably, subscribers of Game Pass will also gain access to champions / agents, which bypasses a significant revenue stream for Riot Games. If you didn’t see the announcement, a suite of Riot Games’ titles (LoL, Wild Rift, LoR, Valorant, and TFT) will soon be available via Xbox Game Pass. It’s not often we dedicate a newsletter blurb to partnerships in the gaming space but Xbox’s recently announced partnership with Riot Games is noteworthy.
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