Epic Games, developers of Fortnite, has introduced one of the most popular and successful video games of all time, and it shows by the more than $9 billion it reportedly generated in 2018 and 2019. Fortnite came out as a mediocre, zombie-survival game in summer 2017. Later that year, its Battle Royale mode released for free and Epic Games was off to the races. The game is now in its sixth season of Chapter 2.
It has become such a huge phenomenon that Epic Games had the resources to enter into lawsuits with Apple and Google simultaneously in late 2020. On Monday, the trial with Apple officially began, and with it has come many different pieces of evidence that are making headlines. The gaming industry now has a closer look at some of Fortnite’s past and future, as well as those of other games, such as Rocket League and The Last of Us Part II. This includes a variety of unannounced information, some of which is now public information.
A glaring example is the revenue Fortnite has managed to rake in over the years, which is north of $9 billion according to now-public financial information reported on by Kotaku. While this doesn’t show Epic Games’ net profits, it certainly demonstrates why the company is able to afford to give away so many free games through the Epic Games Store. On that note, the report also shows other interesting information, such as the fact that this money from Fortnite made up more than 93% of the company’s gross revenue in 2018 and 2019. It also shows a hefty increase in spending from 2018 to 2019, with the cost of sales increasing nearly 25%.
CEO Tim Sweeney doesn’t particularly care about these costs, as even with them, Epic Games is growing rapidly and becoming a contender in many aspects of the gaming industry. Epic Games has signed many exclusivity deals for games, putting a plethora of PC games on the Epic Games Store for months before they become available on other PC marketplaces. This, along with Epic Games Store offering free games every week and being the home of Fortnite on PC, has made the storefront a legitimate contender in the eyes of gamers. It also offers developers and publishers larger shares of sales than Steam, the leading PC video game marketplace, making it a haven for them as well.
If one thing is to be taken away from these earnings, it’s the power of microtransactions. Many who are not familiar with the industry may wonder how a free game like Fortnite manages to make any money, and for the most popular video games, microtransactions and in-game purchases are usually the answer. With that said, it makes sense why Epic Games would enter into legal battles over them with some of the world’s biggest and most powerful companies. Along with brand, sponsorship, and advertising deals, Fortnite has undoubtedly become one of the biggest cash cows in the gaming industry.
Sources: Kotaku, Epic Games