Does Raid: Shadow Legends Make Money? An Obscene Amount
With total lifetime revenue surpassing $1 billion recently according to analytics firm SensorTower, Raid: Shadow Legends has cemented itself as one of the biggest money makers ever seen in the mobile gaming industry. This gacha RPG is almost perfectly designed to extract profits from players, leveraging exclusive incentives and FOMO psychology to earn revenue through in-app purchases. Raid‘s developers have the expertise and incentive to wring out every last cent; while the game itself faces backlash for aggressive monetization tactics, it continues raking in money hand over fist.
Just How Profitable is Raid: Shadow Legends?
Since first launching in 2018 across iOS and Android, Raid has seen tremendous growth. While concrete financials are not publicly reported, SensorTower estimates show escalating revenue:
| Year | Revenue |
|---|---|
| 2018 | $3 million |
| 2019 | $159 million |
| 2020 | $378 million |
| 2021 | $482 million |
Raid‘s ownership backs up continued investment into both development and ruthless player monetization efforts. Raid is published by Israel-based developer Plarium, itself acquired for $500 million in 2017 by Australian slots and casino game company Aristocrat Leisure. For these gambling industry veterans, $500 million was a small price to pay: Raid now serves over 380 million total downloads, with an estimated 1 million daily active players.
Whales Spending Thousands Keep Raid Afloat
The vast majority of Raid‘s revenue comes from a tiny fraction of players making in-app purchases. As with any freemium game, the "Pareto principle" applies, with roughly 20% of players accounting for 80% of revenue. But Raid takes this to the extreme, with individual "whales" dropping up to $10,000 or more chasing rare characters and progression.
Packages in the game store directly target these super spenders. A "Warlord‘s Chest" goes for $99.99, guaranteeing an epic or legendary character. The near-$100 price point caters specifically to those for whom money is no limitation. A U.K player claimed to have spent £20,000 (roughly $27,000 USD) over 3 years playing Raid, lured in by the dopamine hit of progress and discovery.
Multi-Million Influencer Marketing Drives Downloads
Raid doesn‘t leave player acquisition and brand awareness to chance. The developers budget millions every month for online video and influencer marketing. By one estimate, Plarium spends upwards of $4 million monthly just on YouTube brand deals and sponsorships.
Top content creators can earn as much as $11,800 for a single Raid sponsorship, according to analytics firm GameRefinery. These videos in turn deliver on Plarium‘s investment, generating hundreds of thousands of views and downloads subsequently. Raid has faced backlash, however, for failing to properly disclose when creator content is paid for.
Monetization Baked In From The Ground Up
As one reviewer described it, Raid: Shadow Legends is purpose built to "monetize the crap out of people". The entire game seems designed around incentivizing spending. Gacha game mechanics like random character shard drops hook players into chasing the next big prize. Features like Battle Pass, tournaments, events and a glut of new characters ensure there‘s always a reason for players to open their wallets regularly.
Raid expertly exploits common psychological openings: the fear of missing out, sunk cost fallacy, and thrill of variable reward schedules. Whether this constitutes unethical game design is certainly up for debate. But one thing is for certain – these systems work. Raid‘s lifetime revenues are testament to just how effectively it monetizes players.
Outlook: No Signs Of Slowing Down
Given Aristocrat‘s $500 million investment and expertise in casino-style monetization, Raid: Shadow Legends shows no sign of dialing back its ruthless pursuit of player revenue. While the title continues attracting criticism for aggressive tactics, it nonetheless manages to maintain decent reviews and a large, engaged player base funneling money back into the game. With the backing of industry veterans and a polished product that prints cash, Raid‘s reign looks set to continue for the foreseeable future.
