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Graph of the week

Graph of the week

15-02-2019 | Insight

Average annual revenue per Fortnite user

  • Jack  Neele
    Portfolio Manager

Last year was Fortnite year. The video game has turned the traditional video game industry on its head and became the game of choice for players young and old. Five reasons to explain its success.

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1. Fortnite is free

One of the key reasons for its successful start is that everyone can play for free. Traditional games often cost around EUR 60, which is a lot of money for most youngsters. Money (V bucks) can, of course, be spent within the game, but this won't give you an edge on other players. For example, you can buy a new skin (outfit) for your character, but not a more powerful weapon or better protection than your opponents. 

And, yet, the average Fortnite player spent USD 96 on the game in 2018. This is significantly more than for more traditional games. But there’s more. With around 200 million users, Fortnite currently generates more dollars per user than several of the most successful internet companies put together!

2. Battle Royale

The Battle Royale mode also distinguishes the game from its competition. In this mode, 100 players are dropped onto an island to scavenge for weapons and equipment. The winner is the last man standing. To build up tension, the playing arena gets smaller and smaller as the game progresses.

3. Availability

Don't underestimate the importance of what you can play the game on, because Fortnite is one of the few games that is available on mobile (iOS and Android), PC and also PlayStation, Xbox, and Nintendo Switch. So, players can play against other players, anywhere, regardless of device. This is fairly unique in the video game industry.

4. eSports

At the end of last year, the number of registered accounts passed the 200 million mark. Fortnite users are part of a shared experience with different seasons, storylines and events. Last year’s big season finale was watched by around 10 million players or viewers – via the video streaming platform Twitch. Famous Fortnite players like Ninja are thus also followed by other players. Ninja plays the game around seven hours a day, with an average 50,000 viewers per minute. Therefore, he earns around USD 500,000 a month from the game.

5. Culture

Fortnite has become a cultural phenomenon. Famous football players, rappers and other celebrities play it and invite their social media followers to take up arms against them. Players spend an average of one to one-and-a-half hours a day on the game. Reed Hastings, CEO of Netflix, recently called Fortnite “a bigger competitor than HBO”. 

Fortnite's strong growth has not gone unnoticed in the industry. Therefore, the success of the free-to-play business model has undoubtedly set the ball rolling for similar endeavors in the future. Fortnite’s makers now have the difficult task of continuing to innovate to maintain their lead.

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