It’s quite a burgeoning question, isn’t it? How does Fortnite, a free-to-play video game make money? But before that let’s just say what would be your thought if we were to say that Fortnite did not simply make money, but ended up generating a whopping $1.8 billion in 2019 itself. That’s some achievement, aha!
Come, let’s find out why Fortnite has become such an irresistible name in the gaming world and how it’s racking up billions in money.
What’s Fortnite?
Fortnite is a free-to-play video game based on the battle royale concept. It’s set in a post-apocalyptic world with a zombie infestation. Part of Epic Games vault, this game has reached millions of people all over the globe who continue to help take the hype to the next level.
The game itself has various pay and upgrades options within it but the basic edition is free to play for anyone. And since it’s a multi-platform game that can run on phones, computers, and consoles, there is always a flood of players.
What is the Business model of Fortnite?
There are two different games under Fortnite; Fortnite: Battle Royale and Fortnite: Save the World. Although Save the World did not light up many sparks, Battle Royale has minted plenty of money for Fortnite. The theme of the game is similar to that of PUBG where around 100 players land on an island placed in a sinking map and scavenge for weapons and resources with the last remaining getting crowned as winners.
But that’s the only similarity. While PUBG has a military theme to it, Fortnite has a cartoonish feel which made it more likable. Fortnite also allows the players and fans to watch the game together via their Twitch TV link, a YouTube-like platform for gaming.
How does Fortnite Make Money?
Fortnite is a free-to-play game with an option of in-game purchases and upgrades. This is where much of their money comes from. These micro-transactions are the base for Fortnite’s revenue. While everyone can play for free, around 70% of players tend to end up purchasing ancillary services offered as in-game purchases like skins and customizations.
All the customizations require V-bucks, Fortnite’s in-game currency which can be used for all the in-game purchases. It is priced at:
- 1000 V-Bucks for $9.99
- 2500 V-Bucks for $24.99
- 6000 V-Bucks for $59.99
- 10,000 V-Bucks for $99.99
You also get bonus V-Bucks with every purchase based on offers.
These V-bucks can be used to buy customizations, skins, and more. And then there’s Battle Pass, an option to allow players to get exclusive access to system updates like the map, character features, and more. This Battle Pass is one of the major bulk revenue generators for Fortnite and is priced around $9.50 for a quarter.
Apart from this, Fortnite also generates revenue from its Fortnite: Save the World game which is based on pay to play theme. It charges around $40 upfront to play. A lesser-known but substantial revenue data is its income from Fortnite World Cup.
Fortnite World Cup is annually organized by Epic Games where around 40 million players participate from all over the globe. In the end, the game pit the best 100 players in the finale to find out the winner. The entire World Cup is shown live on Twitch TV and YouTube. This helps bring about plenty of media viewership and event deals that Epic Games can conclude and add to their revenue. And don’t forget Fortnite also sells quite a few merchandises in form of branded apparel, toys, speakers, and more adding up to their revenue count.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin