Fortnite is an online video game which was created by Tim Sweeney and released through Epic Games Inc. in July 2017. Now, this game becomes a huge success. Even though the format of the game is not wholly unique since there is a prevalence of shooter-type games in the industry. Because of the success of this game, no wonder that there are a lot of people who are curious about the money that Fortnite made in total.
In its first 10 months, this game could collect an audience of 125 million players and it means that Fortnite netted $1.2 billion in revenue. On April 1, 2018, when the Fortnite App launched on iPhone, it reportedly made $2 million a day from players on Apple Inc.’s (AAPL) iOS. While other games have netted $1 billion in the first year after their launch, Fortnite was able to be the first game to generate such a massive amount of revenue as a game that is offered for free by its developer.
Then, in 2019, according to data reported by SuperData Research, a Nielsen Company, Fortnite brought in revenues of $1.8 billion. As of March 2019, the CEO of Epic Games, Tim Sweeney, reported that there were close to 250 million Fortnite players.
According to SuperData Research, Fortnite was the fourth-highest grossing video game on consoles ranked by February 2020 earnings. So, why can Fortnite be this success? How have they managed to make money by giving away their product free? As we know that most console releases make money from selling a hard copy or digital version of the game itself. How about Fortnite? Well, the revenue of Fortnite comes entirely from microtransactions.
The monetization happens when the player wants to get additions, dubbed costumes and skins, which they have to buy. Users of Fortnite are able to continue to play Fortnite for free but a majority of players pay for these additional products and these activities generate vast amounts of revenue for Epic Games. In this game, there is also a unique feature named the Battle Pass. It costs about $9.50 for a quarterly subscription.
Battle Pass generates the quantity of Fortnite’s revenue. The quarterly fee gives the purchasing player exclusive access to the system updates of the game such as changes to the map and character features which a free player does not get. In addition, it permits the player to purchase the game additions for a cheaper price than if they were to buy them separately.
As a Fortnite player, you also have the option of spending money on in-game currency, named V-Bucks. It can be used to make in-game purchases. You are not able to use V-Bucks to buy anything that will actually affect their performance in the game. But, you are able to use the currency to buy cosmetic skins, dances, and pre-released game modes, which range from 200 to 2,000 V-Bucks or $2 to $20. There are a lot of accessories in the Fortnite shop which are available on a limited-time basis and it prompts players to buy coveted items before they disappear from the virtual store.
