Fortnite is a battle royale game of the company Epic Games. It has a huge fan base with 15 million players playing the game. The company has built its own propriety software called Unreal Engine that makes its own video games. These games are then licensed out to other companies. This has become a challenge for other competitive companies.
The brain behind this company is the 50-year-old Tim Sweeny, the founder, and CEO. A bigger challenge posed by Epic Games is its legal fight against Apple and Google. By suing these companies Epic Games can change the whole concept of the digital economy.
Fortnite as a game was brought out in the year 2017. Initially, it took $40 for a person to download the game which later became free. The risk of making the game free-to-play was compensated with in-app purchases of items like outfits. These purchases can add value to the total revenue.
According to Nielsen’s gaming division Superdata, the in-game purchases of Fortnite were $1.8 billion and $1.3 billion in 2019 and 2020 respectively. Even after this Epic Games had to pay cuts to app store owners like Apple and Google. They received a share of all in-app purchases.
Epic Games motivated its users not to pay through Apple or Google. It gave them the option of paying the company directly. As a result of this Apple and Google discarded Fortnite from their app store. They claimed it to be terms of service violation against which Epic Games filed a lawsuit to let apps sell in-app purchases without any revenue cut for Google or Apple.