There are several approaches and techniques I can think of that will help mitigate the sting of losing.
Losing players should still get rewarded. Battle Royale games have only one ultimate winner, but they hand out rewards to all participants. Those who survive longer get better rewards, even if they don't win. Many games have achievements and secondary goals that grant rewards even if you don't win the match.
Losing will always sting, but we don't have to let it fester. We can, instead, offer the loser a quick exit and an option to get into a new game quickly. Most battle royale games offer the ability to spectate or start queueing for a new game immediately upon game loss.
Losing can be an opportunity to learn and improve. Not a lot of games do this, but I really like how fighting games have replays of your matches where you can go back and see the inputs and the events that transpired. Several of them even have instantaneous takeover, where the player can let the replay go until they start inputting new commands and see what would have happened if they had done something different.
Losing feels less bad if there are things built into the game that can share/take the blame. Think about how many players in MOBA games like League and DotA complain about their teammates, rather than look inward for reasons they lose. Similarly, randomized elements like not drawing enough (or too many) lands in Magic: the Gathering can give players a convenient "release valve" for their frustration and let them continue playing without needing to harm their own egos.
I think that it's important to recognize that the importance of victory is mostly determined by the stakes involved in the game. If we reward players primarily for victory, then winning will feel better and losing will feel worse. If you don't grant heavy rewards for victory, then the losing doesn't feel worse and the winning won't feel as good. Still, through judicious reward placement and some vents for frustration, we can make mitigate the worst of the sting of losing for most players.
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