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Home / Technology / Fortnite's revenue declined 48% in January, but the slump is unlikely to last long – TechCrunch

Fortnite's revenue declined 48% in January, but the slump is unlikely to last long – TechCrunch



If you think Fortnite looks mortal, think again.

New figures from SuperData show that the Fortnite Juggernaut was an important measure earlier this year. In-game inter-platform revenue declined 48 percent between December 2018 and January 2019. As the report states, December was a peak month for the multiplayer third-person shooter. Fortnite fever was in full swing to bring record revenues.

While a 48 percent decline in revenue sounds like a deadly wound, the game's unique sales model and seasonal trends mean we should not be preparing Fortnite obituaries so soon. Fortnite is a free-to-play model and generates revenue from the purchase of digital goods such as dance animations and elaborate character skins in-game. Apart from the quarterly season passes, there were no recurring subscription fees. Fortnite revenue would never track the numbers of a more traditional game.

A typical example: Fortnite maker Epic seems to have a $ 3 billion profit in profit over the course of last year. In November, Sensor Tower data estimated that Fortnite players spent $ 1

.23 million a day on iOS alone . Considering the Fortnite platform agnosticism, this is just a stream of many, from mobile devices through the console to the PC.

For Fortnite, a decline in revenue does not necessarily mean a decrease in user numbers or fewer games overall – it just means that people were less likely to spend money on virtual goods. These purchases are purely cosmetic and do not offer a significant competitive advantage, so it's a strange measure to judge the overall state of the game, even though this is obviously an important factor in the game's business.

A game like Fortnite is designed to be cyclical, with players starting as fresh content. In December, Fortnite's new Season 7 season coincided with the holiday season, resulting in a strong combination of revenue as players purchased new virtual goods, explored a newly developed map, had more time to play and new devices to try out. In January, the players itched after the next big update.

"Undoubtedly, Season 7 started in December. In the months of a new season, we see a significant increase in Fortnite Mobile revenue as the player base purchases Battle Passes en masse. "Explains Randy Nelson, Head of Mobile Realization at Sensor Tower, to TechCrunch.

month after a new season are not new; Fortnite for iOS revenue declined 33 percent from October to November 2018 based on our estimates, from $ 56 million to $ 36.6 million.

Overall, the SuperData figures in January show a decline in digital gambling by 6 percent compared to the previous year. If Epic were to see stratospheric user and revenue growth in its last holiday season, the real test will ask if the game can keep its momentum until 2019, while emerging competitors are fighting for a slice of the pie. For the eighth season, this week's game is filled with a wave of fresh digital goods, so we should have a pretty good idea of ​​Fortnite's staying power as the new spring content comes to an end.


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