How does Fortnite make money?

Fortnite has recently celebrated the huge extravaganza by celebrating the 2nd birthday on 27th July 2019. It was celebrated as a Fortnite world cup and given millions of dollars in prizes. There is some account by which the company has given 30 million dollars in prizes. Kyle Giersdorf a 16-year-old from Pennsylvania has won 3 million dollars and also the rights of bragging from the Fortnite world cup championship.

Fortnite is a free to play video game which is set in a zombie-infested, post-apocalyptic world. It was developed by Tim Sweeney and then it was released through the epic games Inc. In 2017 the fortnite account sale got a huge success, as the format of the game is very unique. There is also a prevalence of shooter type games present in the industry. There are various variations for playing this a free business model. But at no cost, everyone can play the fully functional game.

This business model of free to play has set Fortnite apart from its peers. This is the reason for the success of Fortnite. In the first 10 months, it has amassed an audience of 125 million players and has made 1.2 billion dollars in revenue. Then the app Fortnite launched on iPhone in 2018 and it has reported 2 million dollars from the players from Apple Inc. There are other games that have made a 1 billion dollar net in the first year of the launch.

Fortnite is the first game that is able to generate such a heavy amount of revenue from the game and is offered free by the developer.

Key Takeaways

Fortnite has brought revenues of 1.8 billion dollars in just 2 years.

Most of the console is making money by releasing the console and selling the hard copy or the digital version for the game, but Fortnite revenue is coming entirely from microtransactions.

In 2019, Tim Sweeney the CEO of Epic Games has reported that 250 million Fortnite players are active on this platform. The data reported from the research of SuperData which is a Nielsen company has reported the revenues of Fortnite.