Fortnite game pushed Epic Games’ revenue to the maximum
Epic Games’ Fortnite is undoubtedly one of the biggest success stories of 2018. It made a huge amount of profits across platforms like Nintendo, PlayStation, Xbox One and Android, making its debut a few months back; and gathered around 200 million registered users.
Based on the Fortnite Revenue report 2018 by TechCrunch, the video game and software development company has made a jaw-dropping $3 billion in profit this year, all thanks to Fortnite series.
Epic Games revenue for 2018 is equivalent to its popularity with potential promotions including partners like Tyler ‘Ninja’ Blevins, and many more celebrities. Also, the company made some unwanted publicity when PUBG dropped a lawsuit against Epic Games earlier this year.
Fortnite, a free mobile gaming saga, makes most of its revenue from selling digital items and has made the Battle Royale category fashionable among the masses single-handedly.
Eric Williamson, the Lead Systems Designer, told Eurogamer
“To put it in context, some of the folk around the office are saying hey, we could be the biggest Battle Royale game in the western world, which is crazy. Some people are saying we could be the biggest and best-played game in the western world.”
Epic Games, which was founded way back in 1991, charged a valuation of around $15 billion this past September, with investors like KKR, Kleiner Perkins and Lightspeed, backing the development firm with $1.25 billion in an investment round.
Tencent, the Chinese megacorporation, and the maker of blockbuster chat app, WeChat, and other prolific games became the first outside investor in Epic Games’ business back in 2012 and owns 40 percent stake in the company.
Back then, Epic was known for Unreal Engine, the third-party development platform but gave up the huge slice of its business with the changing times because Executives sensed a change in the way games were headed based on declining returns and increasing budget of console games.
Epic Games CEO Tim Sweeney explained that the investment money received from Tencent allowed the company to make freemium games rather than big box titles. Sweeney called this strategy ‘Epic 4.0.’ He further added,
“We realized that the business really needed to change its approach quite significantly. We were seeing some of the best games in the industry being built and operated as live games over time rather than big retail releases.”
Epic Games usually keeps its financials closely guarded, but digging beyond the $3 billion profit figure, Sweeney gave credits to Fortnite and said that the company had redefined modern gaming, both by true cross-platform experiences and by pulling in vasts amounts of money.
A recent report from Sensor Tower estimates that in November, iOS users were alone spending $1.23 million per day which helped the game bank $37 million in that month.
As previously mentioned Fortnite supports PlayStation, Xbox, Nintendo, PC, Mac, and Android, generating revenue from these platforms isn’t easy, but data from Super Data Research concluded that the game made $318 million in May across all platforms.
Fortnite has undoubtedly lost out a massive amount of revenue in China, because the Chinese Government froze all game licenses nine months ago, preventing new publishers from monetizing new games over that period. Tencent, which publishes Fortnite in China, released the game in the country but wasn’t able to draw any revenue from it.
Fortnite’s latest update 7.10 dropped early this month with twists and plots for the Christmas period. With the pace that Fortnite is picking up players and appeal of the festive period, this could have been its biggest revenue generator till date.
Though, Fortnite isn’t Epic Games’ only money-generator. The company also backs revenue with its Unreal Engine and Gears of War, as well as the newly launched Epic Games Store.
Either way, Epic Games boasts that it could do much more than just Fortnite and could drive much higher profits for the upcoming years.
Check out our news section, to keep yourself updated on other gaming apps and tech related news.
From leading business houses to budding startups, everyone can bank on us for all their future insights.A look at our mighty stats is a proof enough of our intentions to drive emerging advancements in the mobile industry and reinventing digital media in every possible way JOIN US!