nav
Business Operations Business Models

How Does VALORANT Make Money (Business and Revenue Model)

The VALORANT business model

VALORANT logo
Here’s what you should know:
  • What is VALORANT, and how does VALORANT work?
  • How does VALORANT make money?
  • In-game Purchases (via VALORANT Points)
  • Ad Revenue (from YouTube Ads)
  • VALORANT eSports Live Events (Ticket Sales)
  • Selling Merchandise (Riot Games Store)
  • VALORANT profit and revenue
  • What is the VALORANT business and revenue model?
  • VALORANT funding, net worth, and valuation
  • VALORANT subsidiaries, acquisitions, and exits

How does VALORANT make money and how is it free to play? Well, here is the complete, in depth, breakdown of their four (4) revenue streams and the different products and services they offer, as well as the VALORANT business and revenue model, how much money VALORANT makes per year, and how VALORANT works.

What is VALORANT, and how does VALORANT work?

Valorant, stylized as VALORANT, is a free-to-play (FTP) first-person hero shooter game developed by Riot Games.

Developed and released in 2020 by Riot Games, VALORANT now has more than 20+ million average monthly players.

So, how does VALORANT work? You can play VALORANT by simply heading over to their website, tapping on “Play Free”, creating a Riot account (if you haven’t already done so), then downloading the gaming software onto your Microsoft Windows. Once downloaded – install it, create an account, and start playing.

Some of VALORANT’s competitors include Fortnite, RobloxMinecraft, League of Legends, and other popular online games.

How does VALORANT make money?

According to VALORANT, VALORANT has more than 20+ million average monthly players; ~700,000 of which are playing daily. So how does VALORANT make money off these players if VALORANT is a free-to-play game?

Below is a breakdown of how much money VALORANT makes and its revenue model. Including all revenue streams and how much they charge for their services.

Because of the fact that Riot Games is the developer of, both, VALORANT and League of Legends (LoL), both games’ revenue models for how they make money are nearly identical.

Here are the 4 ways how VALORANT makes money in 2022

VALORANT has a revenue model that makes money in four (4) ways; through in-game purchases, ad revenue, ticket sales from VALORANT eSports live events, and selling merchandise.

#1. In-game Purchases (via VALORANT Points)

One of the ways VALORANT makes money is through the sale of Valorant Points (VP).

What are Valorant Points (VP)? Valorant Points (VP) are VALORANT’s in-game currency that allows users to purchase and use this currency to buy things like battle passes, skins, Radianite Points (RP), and more in-game items.

Valorant Points (VP) can be purchased in-game or at partnering retailers that sell Valorant Points Gift Cards. You can see how much Valorant Points (VP) cost below.

How much do Valorant Points (VP) cost? (Valorant Points price)

  • $5.49 to $99.99 USD depending on the quantity of Valorant Points purchased (prices may differ by retailer and region)
VALORANT Points (VP) | VALORANT Business Model | How Does VALORANT Make Money | How Does VALORANT Work
Source: Riot Games

Note: It’s reported by Upcomer that developer Riot Games generated $18.72 million in revenue from VALORANT Champions skins in the first 2 1/2 weeks they were available in-game.

#2. Ad Revenue (from YouTube Ads)

With a combined 1.2+ million subscribers across their 7 VALORANT YouTube channels, the VALORANT brand also makes money by monetizing the YouTube video content they upload to their channels.

These 7 channels upload content like live broadcasts of pro play across all global leagues including the World Championship. As well as weekly highlights, gameplay breakdowns, commentary, and more.

Which, to date, have tallied up a combined 178+ million views across all 7 channels. Although it’s unclear how much YouTube ad revenue they generated from these views given it varies.

Note: VALORANT has 7 YouTube channels totaling 178+ million views and counting.

#3. VALORANT eSports Live Events (Ticket Sales)

In addition to streaming tournaments, VALORANT also makes money through selling tickets to these VALORANT eSport events.

Just like League of Legends’ (LoL) eSports events, these are live in-person tournament events where fans who purchase tickets can watch these gamers live at the venue – which is held in various parts of the world.

You can take a look at the image below to get an idea of how popular these VALORANT eSports live events are.

VALORANT eSports Live Events | VALORANT Business Model | How Does VALORANT Make Money | How Does VALORANT Work
Source: eSports

#4. Selling Merchandise (Riot Games Store)

Another way VALORANT makes money is by selling its own merchandise through its official online Riot Games Store.

Here, they sell branded VALORANT apparel, collectibles, accessories, and more that range in price between $5 to $940+ USD.

VALORANT profit and revenue

Neither Riot Games nor Tencent has released any official reports in regard to VALORANT’s earnings.

Note: Because Tencent Holdings Ltd., the parent company of Riot Games, is a publicly traded company on the Hong Kong Stock Exchange (SEHK). You can find all of Tencent’s publicly released financial reports, including annual reports, through Tencent’s investor section on their website.

What is the VALORANT business and revenue model?

VALORANT makes money through a few revenue models that they combine within their company, they are:

  • Gaming as a Service (GaaS) business model
  • Free to play (F2P) business model
  • Transaction based business model
  • Advertising based business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

VALORANT funding, net worth, and valuation

According to Riot Games’ Crunchbase profile, the VALORANT developer, Riot Games has raised $21 million over 5 rounds.

In February 2011, Riot Games was acquired by Tencent for $400 million USD.

VALORANT subsidiaries, acquisitions, and exits

To date, Riot Games, the VALORANT developer, has made a total of 3 acquisitions, 21 investments, 6 lead investments, and 3 successful exits.