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This is how the free video game ‘Fortnite’ might make more than $3 billion annually. It all comes down to a frenzied player base that is eager to spend real money on virtual currencies that don’t have any impact on actual gameplay.
Chances are you’ve heard of a video game called “Fortnite.”
It’s a massively popular game that is generating hundreds of millions of dollars each month in revenue. But unlike other popular online games like Activision Blizzard’s “Call of Duty” franchise, “Fortnite” is free to play.
How is it that a free game is on pace to make $3.5 billion this year alone?
It all comes down to the in-game purchases made by gamers from around the world. Players exchange real cash for virtual cash known as V-Bucks. This allows players to buy upgraded skins for their characters and even unlock certain rewards. Even though these upgrades don’t give players a competitive edge, that hasn’t stopped gamers spending hundreds of millions of dollars a month on them.
SuperData, a research firm that specializes in video games, estimated that Epic Games’ “Fortnite” generated nearly $296 million in April. Multiply that number by 12 and “Fortnite” has the possibility of generating $3.5 billion in revenue annually. Epic Games recently announced that it is jumping into the esports scene. The gaming studio said that it will be funding $100 million in esports prize pools for “Fortnite.”
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How Fortnite Makes Money | CNBC
Tonight. It’s free to. Play but here’s how it’s on pace to to make 35.
Billion dollars for those who don’t know. It’s a mega video game with millions of addicted players. But unlike other popular online games like call of duty.
You can download it for free.
And you’re ready to go a recent estimate by data research firms. Super data estimates that the game pulled in 296 million dollars in revenue in. April.
Multiply that by 12 and you’re looking at an estimated 35. Billion dollars in annual revenue. So how is this game making money people are shelling out real cash on v bucks.
Which is fortnight’s in game currency v.
Bucks. Lets you buy cosmetic items for your in game character it will also let you buy the battle pass. Which is a way to unlock in game rewards.
The gaming studio behind fort and i also raked in money by letting players buy early access to the main version of the game. Known as save the world mode or the most popular game mode is battle royale. Which pits a hundred players against each.
Other until one person is left and comes to a battle royale game the main tip is survival.
You don’t want to go in trying to kill everything that you see avoidance is key. Even at the high level of gameplay. A lot of players will avoid each other just so that they can get that number one win while the in game.
Currency doesn’t affect gameplay that hasn’t stopped players from spending hundreds of millions of real dollars each month to spruce up their characters and play in battle royale so far it’s been a successful model for epic games as the v box model hasn’t drawn the same kind of scrutiny as ei did when they really star wars battlefront. 2. And link 2017 that highly anticipated game.
Faced an avalanche of criticism due to the fact that it not only required players to buy the game.
But it also incorporated expensive in game purchases as one wing to unlock popular characters such as darth vader. It was a pr black eye for he a and the stock it took a hit amid the controversy. Though it has since recovered those losses.
However the ian example sheds light on how for tonight’s free to play tactic combined with later purchases that don’t affect. Gameplay has helped the game reach of frenzy status. You know the the freemium style of video games.
Has been around for a decade.
Now where the game itself is free and you and some games are pay2win. Which people really don’t like when on the other hand games. Like dota.
2. Have been around forever making a ton of money on something that affects the game in no way. It’s just cosmetic the game has also attracted a wide base featuring many younger gamers who are drawn to the cartoony aesthetic of the game as opposed to a similar game player unknown battlegrounds.
Which has a grittier real world feel back in january epic games.
Revealed that the game has been played by 45 million people worldwide at one point concerns about for tonight’s rapid growth actually wiped out 6 billion and activision blizzard’s market value concerns that fortnight will cannibalize. The company’s profits and apparently. Activision is listening the company recently announced a new battle royale mode in this popular call of duty black ops for game to compete with fortnight.
So will fortnight continue to be a cash cow for epic games. Yeah. I mean yes for sure for that’s gonna be a successful game for a long time people are always going to walk that new costume.
They put out every one of the worlds playing for tonight right now and that’s not going away you know people under the age of 20. They know their favorite fortnight’s streamer. More than they know their favorite baseball player.
And that’s not gonna change that and the numbers. Keep piling up epic games recently announced that it will provide a hundred million dollars to fund esports prize pools that would be the biggest esports in the world in terms of prize money by a huge margin hey there thanks for checking out cnbc on youtube be sure to subscribe to stay up to date on all of the day’s biggest stories you can also click on any of the videos around me to watch the latest from cnbc thanks for watching. .
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