How Fortnite Makes Money [A lot of it]

How fortnite makes money and it’s actually a really interesting business model to look at and a ridiculously successful one like over billion dollars a year successful.

I’m assuming you’re all familiar to some extent with fortnite Battle Royale if you are not it’s a 100 percent battle royale game where they go onto an island and fight it out until one person stands it has seen ridiculous growth in the last six months and a lot of that is due to the fact that it’s free-to-play it’s worth clarifying or reiterating that I’m only talking about the battle royale mode the main game mode of for tonight is actually save the world and that does cost money but I’m only gonna be talking about battle royale in this video because that’s the mode that’s seen all this growth and all these amazing numbers and if that is the mode that is free-to-play across all platforms so how do they get billion dollars from a free-to-play game and that is where the in-game purchases come into play and the in-game purchases are purely cosmetic it is not a pay to win game there are no advantages to paying for these items they are purely cosmetic like skins or pickaxes or a different glider things along those lines so they are able to cash in on the customers willing to spend money without necessarily giving a disadvantage to the customers that aren’t willing to spend any money and that’s really where the heart of the trade-off is it’s you want users but you also want money and that’s when you compare it to other games you can see a big difference here.

So here is a chart that’s worth looking at you can see that fortnite on console specifically is still beat out by FIFA and Call of Duty because those games not only cost money upfront but also have in-game purchases that actually give the user an advantage so they have a lot of different places where they’re getting money from those users but because of that they don’t have nearly the user base that fortnite does right now now let’s dive a little bit deeper into that billion dollars a year number so that is based on that their revenue from February which was reported to be one hundred and twenty six million dollars multiplied out times twelve comes out to a little over billion dollars however do note that is all based on our assuming that it’s going to be a constant amount of money for the next 12 months but realistically that billion dollars a year number is not actually accurate fortnite is seeing ridiculous growth right now within two weeks of being released fortnite battle royale had over 10 million players right now they’re sitting around 45 million players with two to three million concurrent players and they actually increased the free-to-play console market segment by over 300% since last year that’s wild another interesting fact related to for tonight’s success is that Activision stock has dipped over 10 percent in the month of March because of fortnite’s growth and that’s a result of a loss of six billion dollars in market value for Activision and even games like NBA 2k 18 are seeing a downward trend because of the rapid and astronomical success of fortnite but back to my point about the billion dollar figure not being accurate.

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There’s two main reasons that I can’t confidently say that’s how much money they’ll make this year they did make 126 million dollars in February but there are very important things to note for the future the first of which is their growth is very unpredictable if they continue growing at an exponential rate for the next 11 months they would make a lot more than billion dollars in 2018 and they are on that track right now but it’s also worth noting that they could fall down as quickly as they came up it’s been six months and they are now the most popular game in history in six months from now who knows if it’ll be ten times as big or ten times as small because of a bug where a lawsuit or something like that so it’s very unpredictable where it’s going the billion dollars is probably not accurate it could be a hell of a lot more or it could be even less if something bad happens that’s it for this video what do I think I think that for tonight’s gonna continue to grow not necessarily as fast as it has in the last six months one just because a lot of the players that would play for Knight are already playing it but also just because it’s hard to keep adding features and adding users at the pace they are currently I personally love fortnite I play it every day it’s an awesome game but I could definitely see how a couple missteps in a row or a couple issues could reduce the rate at which they get new users and users are coming back in the future only time will tell I want to hear your thoughts let me know in the comments down below let me know what you think about that revenue number for February and on a yearly scale it’s an absolutely astronomical number for a single video game very impressive very awesome love fortnite thank you for watching subscribe to see content and as always stay classy.

Jason Smith

I am a former Marine who works as a Software Engineer. I have five US States left to visit. My sarcasm is legendary as is my knowledge of movie quotes. I can name the song or artist of just about any 80s or 90s song. I like whiskey, wine, coffee, soaking in hot springs or my hot tub. I enjoy getting out hiking, and taking pictures, along with metal detecting & magnet fishing from time to time. I do enjoy the occasional gaming by breaking out the original NES or SNES. I do spend a lot of time building other websites, (about 30 some in total).

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