Riot Games has announced the layoff of approximately 80 employees from its development team for the fighting game 2XKO, which was released on January 20, 2026. This decision, reported by Game Developer, follows disappointing outcomes from the game, which faced higher expectations from both the company and its audience. Despite being under development since 2016 and having a PC version debut in October 2025, 2XKO did not reach the necessary success to justify maintaining a large development team long-term.

Tom Cannon, the game's producer, explained in a blog post that while the game garnered interest from a dedicated audience, it ultimately fell short of the standards required to sustain such a sizable team. Cannon emphasized that, despite the layoffs, development of the game will continue with a smaller team in place. However, he assured that the layoffs would not impact the game’s esports tournament plans set for 2026, indicating a focus on future competitive play still remains a priority for Riot.

The affected employees are being offered opportunities to apply for positions in other teams within Riot Games, and they will receive a severance package that ensures at least six months of pay, showing the company's commitment to supporting its former staff during this transition. This situation not only highlights the challenges in the highly competitive gaming industry but also reflects the necessity for companies to adapt quickly to market responses and gameplay reception to remain viable.