2XKO: What the layoffs mean for the fighter

2XKO is Riot Games’ foray into the fighting game community, a project that has been in the works for some time. Since its early access began, it is clear that Riot has made a mechanically sound, smooth, and stylish fighting game, and that has only improved since the 2XKO release date.

As far as the fighting game community is concerned, Riot Games has a gem on its hands, something with the mechanical basis to sustain an esports presence and longevity. Unfortunately, it hasn’t been the success that Riot had hoped for, and has led to a brutal decision.

2XKO has suffered layoffs, but why is this the case, and what will that mean for the fighter going forward?

Why are there 2XKO layoffs?

Despite positive reception from the fighting game community, Tom Cannon, the executive producer of 2XKO, released a statement revealing that the 2XKO team had been reduced. This is due to the game not reaching the levels required for a team that size, despite resonating ‘with a passionate core audience.’

The goal seems to be sustainability, something that isn’t possible with the current size of the team. It has been revealed that this downsizing has been a major one, with around half the development team, around 80 employees, having been laid off. 

This might be part of the issue, as that means the 2XKO team began with roughly 160 developers. While this isn’t a massive team by any means, it feels quite large for what 2XKO ultimately became. For context, in 2024, Arc System Works had a total of 233, which famously includes the developers of Team Red and Blue, as well as non-developer staff, and is a fighting game studio with immense pedigree. 

Were the 2XKO layoffs inevitable?

As shocking as the 2XKO layoffs are, it wasn’t as though the game’s development was smooth. Gameplay for the title was first revealed in late 2019, and with the game’s full release in early 2026, some say they worked on it for 10 years. This is a long development cycle for a fighting game, especially with one as light as 2XKO with a team of around 160 employees.

2XKO only started looking like the game we know today around four years ago, despite a potentially 10-year development cycle. While the quality of the final product is admirable, a relatively smooth development cycle shouldn’t have taken this long, and it has meant that Riot has invested heavily in the game.

Putting such a heavy investment into a fighting game was always going to be tough. The fighting game genre has a mix of heavy competition, with many long-lived IPs, and a niche playerbase, meaning there aren’t many players compared to shooters, for instance, and it isn’t friendly to new IPs. With a team of roughly 160, working for 10 years, it was always going to be tough to get the investment back at launch with a free-to-play title.

The marketing, in hindsight, was a bit strange too, considering how there didn’t feel like a big bang for the release. The difference between early access and Day 1 wasn’t the most noteworthy, and perhaps delaying Warwick and Teemo’s release until the full release might have generated more buzz.

Was 2XKO enough at launch?

The layoffs were announced soon after launch, and while 2XKO has done about as well as a new fighting game IP can realistically hope to with its marketing and roster, appealing to a niche core, it wasn’t enough for Riot Games. Questions then arise about whether Riot Games’ expectations were realistic, considering the genre and product produced.

For 10 years, with a team of 160, the game itself doesn’t offer a lot either. There are currently 12 2XKO characters, a relatively small roster, especially compared to a spin-off tag fighter like Dragon Ball FighterZ. There isn’t a story mode, and not much of an arcade-style mode, two modes casuals typically start with when getting into a fighting game.

Considering that 2XKO is the League of Legends fighting game, the small roster doesn’t help its case either, as the LoL cast is massive. A bigger roster would have helped the game appeal to the LoL audience, which was needed for greater impact. Riot Games’ goal with 2XKO has clearly been its competitive and esports side, but this isn’t where fighting games get big player numbers from. 

The casual playerbase, that enjoys dabbling in vs AI and maybe some unranked matches, comes in with a bang, then leaves maybe a month after launch, but often makes fighting game launches look impressive. The ones that stick around are the competitive fans, and even the biggest fighting games don’t have massive player numbers. For instance, Street Fighter 6 peaked at around 70K concurrent players, but was down to 38K less than a month later, and now has a daily peak of around 30K according to SteamDB.  

What does the future of 2XKO look like?

The 2XKO layoffs are a major blow. There’s no way around it, but claims that 2XKO is dead feel far-fetched. One major advantage Riot Games still has is that its fighting game is very well made. It’s stylish, fast, watchable, and it feels great to play. This isn’t a title people in the fighting game community feel lukewarm about, like how many FPS fans feel lukewarm about Highguard.

2XKO esports success is still on the cards, especially with how recognisable the cast is and how watchable the game is. Riot Games has already got its foot in the fighting game esports door, so potential remains for success on the competitive side, but fighting game esports doesn’t have the same money behind it that Riot might be used to with VALORANT and League of Legends.

We will have to wait for more information, but the downsizing likely means that the 2XKO roster will see fewer frequent additions than initially planned. Given that 2XKO feels like a success from a purely mechanical standpoint, it almost seems like Riot had unrealistic expectations for a fighting game. It’s a niche genre, with a lot of competition, and 2XKO’s future likely hinges on how well it does competitively.

Conclusion

The 2XKO layoffs are a huge shame, and it is such a tough situation for those who have lost their job, but this does not seem like the end for Riot’s fighter. It is well-made, great fun, and its stylish watchability gives it a great shot at a modicum of esports success, granted Riot Games keeps its expectations realistic.

Ultimately, 2XKO is a good fighting game, and provided those who remain in the team can continue to improve it, it could be a great one with plenty of life, especially competitively. Hopefully, Riot Games is willing to stick it out with 2XKO, although it currently remains another brutal and sad story in the gaming industry.

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