Proposed definitions for the sake of discussion:
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"Lore" is any information about a fictional universe.
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"Direct Lore" is any information about a fictional universe that is necessary to understand in order to grok the main thrust of a work. In a video game this could be any info that is required to finish a "main quest"; in a book-centric franchise1 it's probably "all of the words in the main book/series, but not any other books in the universe"; in a movie-centric franchise it's probably "the entire movie, but not any other movies in the series".
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"Indirect Lore" is any information about a fictional universe that is not necessary to understand in order to grok the main thrust of a work. This could be a lot of things - audiologs, collectibles, tie-in media, side novels, prequels or sequels, backstory information, history documents. Whatever.
None of these are perfect definitions. I am not aiming for perfection here as much as I'm aiming for a general definition that can be understood on a general level by most participants in this conversation.
These definitions are also overlapping, in the sense that the Direct Lore of a prequel might be Indirect Lore for a sequel. Is it important to A New Hope to know about Anakin's affair with Padme in Revenge of the Sith? No, but it's important to Revenge of the Sith to understand that relationship, since that is a crucial part of the story of that film. This same general logic can be applied to any work of connected media, more or less.
A Lukewarm Defense of Indirect Lore
Depending on who you talk to, Indirect Lore is either interesting/enjoyable material that adds context to a single work by adding detail to the universe; or it's the corporate death of media driven by an obsessive desire to, encyclopedia-like, catalog and capture every part of a fictional universe and rob it of any mystique. Like everything else in this post, this is a huge generalization.
I'm more in the former ideological camp than the latter, but I'm not going to pretend I don't think the latter camp doesn't have points. My main frustration with the latter viewpoint is not in its anticorporate framing (that's valid and I agree with that) but in the idea that adding information to a world is inherently removing mystique or gravitas from a work.
Frankly, I'm not so sure this comes from any structural issue with Indirect Lore exactly as much as it has to do with the general quality of the Indirect Lore. If a piece of Indirect Lore doesn't make sense, or removes an important thematic structure from the main body of a work, or doesn't add anything interesting to the world - I don't think that's bad because it's Indirect Lore, I'd say it's bad Indirect Lore.
There is a skill involved in proper Lore generation (which might be synonymous with 'worldbuilding'). It's not quite the same as being a good storyteller, and it's not the same as being a good fictional historian, and it's not the same as having great ideas -- though all of that can help. It's something between all those, that incorporates aspects of all of them. The creation of good lore requires having an eye for what "meaningfully adds to" a fictional world and being able to convey it in a way that is interesting to the reader2.
(There is another element to Indirect Lore that is harder to quantify and changes dramatically depending on how many creators are involved in the work of a franchise, and that's coordination -- knowing when and where makes sense to add to the fictional universe, what additions are worthy of larger projects, what additions make sense in smaller projects. This is hard, argumentative, and inherently fraught with the desires of every creator in the space. Figuring out how to navigate this decisionmaking is a necessary step to healthy growth of a single shared universe, there's just no way around it.3)
I think it's perfectly reasonable to have a distaste for Indirect Lore in general. I don't think it's for everyone and I don't think the way that large franchises build out their fictional universes via Indirect Lore is often particularly graceful. I happen to find the entire process fascinating, mostly due to how it draws out questions of how and why to worldbuild, and how and when it's useful or frustrating to the overall creative process.
Good worldbuilding, good Lore in general, helps create a strong scaffolding upon which you can tell interesting/affective stories. An overdose of worldbuilding without considered story feels like dry and encyclopedic, an overdose of story without considered worldbuilding feels incoherent and contextless.
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1I chose 'franchise' here mostly to avoid "IP" because I kind of hate that word for talking about "any set of connected same-universe media". It feels too corporate. That said, 'franchise' is also an incredibly corporate word so I'm aware this is kind of clunky regardless, just work with me.
2speaking extremely broadly. reader, player, viewer. etc
3I work as a Creative Advisor at Riot Games. This isn't a secret, I just don't talk about it much. This entire paragraph is basically what I do on a day to day basis. This disclaimer is partially to say that this entire post is not really about Riot as much as it is about Lore and how Lore figures in online discourse in general.