Epic Games, the developer behind Fortnite, is now worth somewhere between $5 billion (£3.8bn) and $8 billion (£6.1bn), according to a new report from Bloomberg.
The exact share of that valuation Fortnite accounts for is unknown, but the game reportedly earns an average of about $2 million (£1.5m) per day on mobile devices alone. Jefferies Financial Group Senior Vice President of Equity Research Timothy O'Shea summed up the link between the two, saying: "Epic's valuation has exploded alongside Fortnite's success."
The scale of the growth becomes clear when set against Epic Games' history. The Chinese holding firm Tencent Holdings Ltd. bought 40 percent of Epic Games for $330 million (£254m) in 2012, when the company was valued at roughly $825 million (£635m). That means Epic Games' valuation has surged to as much as $7 billion (£5.3bn) in just six years.
Fortnite's in-game store
Industry analysts credit much of that financial success to Fortnite's revenue model. Though free to play, the game's in-game store lets players spend a virtual currency called V-bucks, bought with real money, on outfits, character dances and missions.
The limited availability of many store items pushes players to buy quickly before they disappear. Wedbush Securities Inc. analyst Michael Pachter described the effect: "On the revenue side, they've done something that's really unique, which is come up with a perception of exclusivity. If you see another player in a leopard skin and go to the store and see it's no longer available, you think, shoot, I've got to move on it next time."
Other developments have added to the company's growth, including updates to its Unreal Engine and the 2014 sale of its Gears of War series to Microsoft. Even so, Fortnite's contribution is hard to overstate. The game has reportedly brought in more than $1.2 billion (£923m) from in-game purchases and remains the most popular title in the battle royale genre, which is believed to be worth $20 billion (£15.3bn) by 2019. Fortnite's player base currently stands at about 125 million people worldwide.
What is Epic Games?
Epic Games was founded in 1991 by Tim Sweeney, originally under the name Potomac Computer Systems and based out of Sweeney's parents' house in Potomac, Maryland. The company relocated to Cary, North Carolina, in 1999 and rebranded itself Epic Games. Alongside developing the Unreal Engine, one of the industry's most widely used video game engines, it has produced titles including the Gears of War and Unreal shooter franchises and the Infinity Blade fighting game series.
What is Fortnite?
Fortnite is a free-to-play game developed and published by Epic Games. It was released in July 2017, with its hugely popular battle royale mode following in September 2017. The mode pits 100 players against each other in fast-paced matches combining action-shooter, survival and fort-building gameplay. Fortnite is currently available on Nintendo Switch, Xbox One, PlayStation 4, Microsoft Windows, Mac OS, iOS and Android.
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