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Businesses Games

Epic Games, the Creator of Fortnite, Banked a $3 Billion Profit in 2018: Report (techcrunch.com) 132

This year Fortnite became the world's most popular game, growing its parent company, Epic Games' valuation to $15 billion. It also helped the company pile up cash. Epic grossed a $3 billion profit for this year fueled by the continued success of Fortnite, TechCrunch reported Thursday, citing a person with knowledge of the business. From the report: Fortnite, which is free to play but makes money selling digital items, has popularized the battle royale category -- think Lord of the Flies meets Hunger Games -- almost single-handedly, and it has been the standout title for the U.S.-based game publisher. Founded way back in 1991, Epic hasn't given revenue figures for its smash hit -- which has 125 million players -- but this new profit milestone, combined with other pieces of data, gives an idea of the success the company is seeing as a result of a prescient change in strategy made six years ago.
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Epic Games, the Creator of Fortnite, Banked a $3 Billion Profit in 2018: Report

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  • by Anonymous Coward

    I literally never heard of it

  • by rsilvergun ( 571051 ) on Thursday December 27, 2018 @02:26PM (#57867310)
    Gog, Steam, Origin, Uplay, Battle.net, whatever the heck Bethesda calls theirs and now Epic's. If I got less DRM (especially Denuvo, which has been shown to kill frame times) or better prices maybe. But so far it's just more logins and more hassle. At least with Gog I can save the games to a DVD and be done with it.
    • Gog, Steam, Origin, Uplay, Battle.net, whatever the heck Bethesda calls theirs and now Epic's. If I got less DRM (especially Denuvo, which has been shown to kill frame times) or better prices maybe. But so far it's just more logins and more hassle. At least with Gog I can save the games to a DVD and be done with it.

      That's why I just use GOG and be done with it. DRM free.

      If it ain't on there, oh well. Life's too short to mess around with this stuff.

    • GOG has no DRM at all, and Steam has sales all the damn time. They've got one going on right now and there's a whole page of games that are pretty heavily marked down.

      Game stores aren't going to affect the prices you see though, since they don't set the prices themselves and are only dealing with digital merchandise so there's never really old inventory to clear out. At best they'll forestall price increases, which has happened to some degree since once you factor in inflation, the Playstation games you
      • Nice story. However Fallout 76 was on sale for Black Friday and then went back up to $60 retail. It's on sale again because of the holidays, as is everything on Bethesda.net, and will likely return to it's retail price after.
        • by Mashiki ( 184564 )

          That's okay, considering it has a user metacritic score of 27 you're probably better off not buying it. GMG has had the lowest price at $47.99USD, though if you're still shit-hot on buying it's still on sale at $48.99

        • If the sales weren't abysmal, there wouldn't be a sale. I don't see Rockstar, Nintendo, or Activision discounting their game as much as 42% [pcgamesn.com] less than two weeks after it was released. It's on sale because it's a complete cash grab on the part of Bethesda and they can't get people to keep sinking money into in-game purchases if no one buys the base game to begin with.

          Hopefully consumers continue to reject this crap so that publishers go back to making a decent product.
    • And now Discord is trying to compete with Steam.

      I beleive I read that they'll charge just 10% of sales price compared to Steam's 30%. If that is true, and if their shop will be as well made as Discord app is, then I can foresee it becomming popular, perhaps even a rival to Steam, at least for the "hard core" if not for the casuat gamer.

    • Gog, Steam, Origin, Uplay, Battle.net, whatever the heck Bethesda calls theirs and now Epic's. If I got less DRM (especially Denuvo, which has been shown to kill frame times) or better prices maybe. But so far it's just more logins and more hassle. At least with Gog I can save the games to a DVD and be done with it.

      Buddy this happened 20 years ago, when everyone bought Ultima online, Everquest, Wow and guild wars (server locked RPG's) you all sent amessage to the industry saying you're stupid and you'll take it up the ass.

      As soon as steam became a thing in 2004 it was over, when developers server locked games and stopped releasing server exe's and level editors it was over. Companies always wanted to get rid of game ownership and take control of software out of users hands and gamers gave it to them. Everyone lines

      • In fairness MMOs killed more game companies than piracy ever could. So many farms bet on being the next WOW. So many farms reposessed.

        • In fairness MMOs killed more game companies than piracy ever could. So many farms bet on being the next WOW. So many farms reposessed.

          Except almost all games now don't release server exe's and the multiplayer portion is server locked and we got no LAN option. Look at what happened to diablo 3. Starcraft 2 is now locked down to sell skins/mtx. They are taking control of software, the net and the PC. Windows 10 + future hardware drm is coming to lockdown the PC and turn it into the android. Shit is about to get worse all thanks to stupid getting internet and feeding those MTX mobile games.

          It's insane how mobile gacha/gambling games are

  • Not Just Fortnite (Score:2, Informative)

    by Anonymous Coward

    I'm pretty sure a large portion of that $3billion came from licensing the Unreal Engine, AKA the engine that powers almost every game on the market not being made in Unity.

    • From what is known, it really is due to Fortnite. See e.g. https://www.recode.net/2018/6/... [recode.net]

    • I'm pretty sure it didn't given that it's parent company is reporting massive increases in profits YoY and they were also licensing Unreal last year. Oh and the parent company is Chinese based and sensitive to the recent anti-game movement of the Chinese government so if it were just up to the Unreal Engine and existing IP alone it would stand to reason that their profit would have fallen this year instead of doubling.

  • Great
    This is going to be happening more and more now. Even with the failure that is FO76
    The AAA games are going no where, and indies are an incestuous mess.
  • Gamers have been served such derivative sub-par shit as games for 18 years - crap like StarWars Battlefront - that utter mediocrity like Fortnite excites them big time. I'm glad I was around in the first golden years of computer gaming. Today's games look nice but play like a 5 year old designed them.
    • by zlives ( 2009072 )

      its designed to appeal to insta-crowd where appearance mean more than substance.
      but then again there probably was an equivalent money grab going on back in the goodoldays...

      • by H3lldr0p ( 40304 )

        Those were called arcade cabinets. Those games were literally designed to keep you pumping in quarters. That's why they were so hard plus had the garish lights of vegas slot machines.

        Now we're looking at more subtle psychological manipulations. Instead of playing on fears of not finishing something you started, they're playing on the fear of missing out, or FOMO. This is part of how their gambling mechanics grab you. Didn't get the one piece of flair you wanted? Just try again, but give me a buck to do so.

        • And they are teaching children that this is a normal and not bad thing to do.
          • You all may be right by way of you have better opinions than each other, and that Epic is serving up content that people want.

            The thing is, that people like it, and people want it. Epic games is not tricking people into liking something they don't like.

            Creating something that fills some emotional need and selling it is exactly what people have been doing since the beginning of time. Want a family with a wife? Pay a dowry or buy a ring. Want to feel like you had a good birthday party? Pay Chuck-E-Ch

          • by zlives ( 2009072 )

            hehe, umm thats what happens when you don't teach your kids... some one else will.

        • by zlives ( 2009072 )

          fort-nite is interesting phenomena to me, i mean you are literally throwing away money on something that changes the skin for your character... no game play, or mechanic, or item upgrade... just looks...
          i guess people also pay for porn so there is that!!

          • Buying gear for a game character is no different to buying a decorative phone case. People see it and say (or think) oh, that looks nice. You see it every time you get your phone out and think, oh, that's *my* phone with the case I chose.

            If you play a game two hours a night why not pay to customise it to look a certain way?

            The fact that the phone case has some plastic material with some notional retained value is irrelevant. The resale value of a phone case is basically zero, and it will become useless when

            • by zlives ( 2009072 )

              i guess its a question of priority or what is important to the spender, I mean i have wasted enough money on games but typically it was for a new addon location or heck a game it self costs money that you could choose not to spend. but skin... i would much rather they allowed a user to customize it themselves with mod-tools.

              especially when there is no resale value as you mentioned.

      • You're half right, but don't totally have it. It's not instragram at all anymore. Fortnight replaced it.

        From my coworkers with pre-teens and teens, Fortnight became the new social network. It became the new social currency. The kids acted out the victory dances on stage, on the ball field, in the classroom, and on the playground. The social currency became buying the limited dance moves for your character, learning them, and being able to drop them at a moment's notice to blow your friends' minds.

        Fortnight

        • by mentil ( 1748130 )

          PUBG made tons of money, apparently primarily through up-front purchases of the game. Fortnite was F2P, which attracts kids more... and a quick trip to any app store shows that F2P games bring in more revenue than any game that's not called 'Minecraft'. Both were the darling of Youtube/Twitch streamers. I don't think Fortnite's success can be explained as 'PUBG with dances', so well as 'F2P PUBG'.

          I imagine there are plenty of Fortnite players who are shy or suck at dancing and would never dream of doing one

    • by Mashiki ( 184564 )

      Today's games look nice but play like a 5 year old designed them.

      That's because gaming has "opened up" to the large crowd of people who want instant satisfaction when playing a game. Truly difficult titles are far and few between. You probably remember the trope of "Nintendo Hard" from the 1980's and 90's? Most people these days wouldn't ever play a game like G&G, Contra or Ninja Gaiden if they had a choice. They were unforgiving titles that punished you for failure. Hell just look at the amount of whining that goes on over games like Dark Souls or even the rema

      • Re: (Score:3, Insightful)

        by Tom ( 822 )

        I was playing those games in the 80s and 90s, and enjoyed them a lot.

        Today, I probably wouldn't. Because gaming has evolved and I have grown up. I don't think being hard for the sake of being hard is a virtue.

        But what I do enjoy are games that are not holding your hand. I like open world games for exactly this reason. I like games that don't spoon-feed you the story, but at the same time are forgiving to mistakes. At the moment I'm playing Subnautica and it doesn't even have an in-game map - but if you die,

        • Almost correct, but adaptive difficulty was first introduced into the franchise in Oblivion, not Skyrim. There are mods to turn if off.
      • Battletech is a recent game, but can be quite difficult at times.

        • by Mashiki ( 184564 )

          Battletech is a recent game, but can be quite difficult at times.

          It actually has a "gear" limit for taking missions. If your mechs or weapons aren't good enough quality, you're in for some serious RNG loves you moments. Though pulling off a mission with a 90T drop and the opposing side comes stomping at you with 250T is fun.

      • You probably remember the trope of "Nintendo Hard" from the 1980's and 90's?

        Yeah, I remember Nintendo Hard. I also know not to look at the past with rose colored glasses and know that the "Nintendo Hard" was often "Fake Difficulty" with "Trial and Error Gameplay" designed to increase how long it took to beat the very short games.

        The early arcade inspired games like SMB, Ghouls & Ghosts, Ninja Gaiden, Castlevania, especially were very short. NES Castlevania is just 6 levels! NES Metroid can be beat in a couple of hours.

        In fact, games like Ninja Gaiden were basically Arcade G

        • by Mashiki ( 184564 )

          Yeah, games respect our time better.

          Except that's not what I said. Tell me something, how are all those "woke" games doing in terms of sales these days?

          • So you're going in on the anti-sjw malarkey again? You know what, alt-right anti-SJW types like you complain more about shit than actual supposed "SJW's" do. YOU are the fragile snowflake who gets butthurt when a game has a playable female character or allows characters to romance NPC's of the same gender.

            And they're doing fine, considering Fortnite is a game with many many different heroes of different ethnicities.

            • by Mashiki ( 184564 )

              So you're going in on the anti-sjw malarkey again? You know what, alt-right anti-SJW types like you complain more about shit than actual supposed "SJW's" do.

              Oh, you haven't been paying attention to the world as Sony has now become more censorious then Nintendo?

              YOU are the fragile snowflake who gets butthurt when a game has a playable female character or allows characters to romance NPC's of the same gender.

              Boy that's some Grade-A propaganda you're spewing there. So I, along with millions of gamers, suddenly, one day, had a problem with female PC's, and romancing the same gender. Does that make any sense to a rational person? You are rational right? And you can think on your own without some progressive nut telling you what to think.

              And they're doing fine, considering Fortnite is a game with many many different heroes of different ethnicities.

              Way to miss the point. Do you need me to draw you a diagram so you can u

              • Oh, you haven't been paying attention to the world as Sony has now become more censorious then Nintendo?

                Not all those fanservice games involving under-age girls need to leave Japan.

                So I, along with millions of gamers, suddenly, one day, had a problem with female PC's, and romancing the same gender.

                Pretty much. How am I to think otherwise considering you used "woke" as a pejorative? What else is the problem?

                Do you need me to draw you a diagram so you can understand why Dishonored 2 failed, and the new Wolfenstien game, and BFV?

                They failed? Why do you think they failed? "Who" says they failed?" And might the "who" have an agenda? Considering the metacritic scores they did quite well. All 3 had higher than average review scores.

                Give you a hint, that your basic understanding of gaming is less then the 13 year old telling you he's going to fuck your mom.

                oh really? Prove it. I've been gaming longer than much of Slashdot has been alive. I've played games as varied

    • Comment removed based on user account deletion
    • Today's games look nice but play like a 5 year old designed them.

      It also happens to be what often makes them fun.

    • Today's games look nice but play like a 5 year old designed them.

      Really? Games like Sunless Sea, Axiom Verge, War Thunder, Elite Dangerous, Divinity Original Sin, Xcom?

      Heck, even Fortnite would count, in the Save the World mode. Which is a PVE Team sandbox buildin/tower defense/RPG/MMO-shooter hybrid

  • by h4x0t ( 1245872 ) on Thursday December 27, 2018 @02:46PM (#57867406) Homepage
    Fortnite was a flop. The Battle Royale mode was a slap dash add on to a failed game. They snuck into a market niche that was wide open: Free BR game with an approachable aesthetic. They monitized it very well without cries of "Pay to Win". PubG is only now starting to catch up in terms of functional sustaining revenue, and they have already lost the majority of their player base.
    • Free BR game with an approachable aesthetic

      Ugh, it looks terrible but maybe that's just me. I preferred PUBG by far... except that I was hopeless at that game. No threat indicators and (when I played it) godawful netcode; there were tricks to knowing where the enemy is and actually being able to hit them but somehow I never caught on (though I do pretty decent in any other shooter). And I wasn't the only one who got frustrated and gave up.

      • by h4x0t ( 1245872 )
        I'm right there with you. I still get pulled into PubG squads to this day (I also suck at it, and agree it was never "fixed" [pubg.com] ). Fortnite never did it for me. The game plays all wonky and is for all intents and purposes, "for babies", as it were.

        I am still glad that their model of free game + 100% cosmetic microtransactions yielded them success. It's an admirable model.
  • They pulled devs from UT4 to help with the mega-successful Fortnite, but it's making so much money I don't understand how they can't afford to triple or quadruple the size of their team and pursue many passion projects like UT4 without any fear of insolvency. UT is such an awesome game (and whatever Quake's status, it doesn't have the game-defining shock rifle) that has appeased hardcore gamers for decades, and now they can well afford to give it some love again, so I hope they do.
    • Now that they have a shitload of money they don't really care about making games anymore.

      Kind of like Apple. They used to make good computers with a good operating system but now that they have a shitload of money they don't really care about making good computers or operating systems anymore.

      • You can throw in MS, Google, and pretty much every tech company.
      • by mentil ( 1748130 )

        Valve is a far better example. Left 4 Dead was made by a studio they bought out, they haven't made nearly anything since the Orange Box, thanks to Steam.

  • Made $3B profit selling digital stuff to make it âoe fun âoe.

    Should tell you all you need to know about the Free to Play model.

    • Pay-to-win. There is no free to play.
      You win by collecting the bling. Who cares about the game when you have that $100 emote and $100 costume.
    • Should tell you all you need to know about the Free to Play model.

      That people prefer to look good when they kick arse (or get their arses handed to them)? In other news people buy wonderfully finished silver iPhones and then pay money for something to cover it up in the hope it makes them unique. That doesn't mean their iPhone is any better.

  • People of all ages like to dress a way they like. Fortnite offers that in the game (sort of).

    People would like to be able to dance. Fortnite offers this (and my kids dance better as a result, I still suck).

    Either of those facets could be a successful game (many aimed at young girls are regarding clothes/looks).

    Now they have Playground mode (hunt your friends), Creative mode (similar to Minecraft), and all of the other regular modes, it's a pretty cool game.

    They have aced 4 player co-op as well. And compl

    • Creative mode (similar to Minecraft)

      I watched a couple streams of Fortnite on YouTube, and thought chopping trees was a silly way of incorporating resource collection into a buildout (i.e. Starcraft). But then I realized it was taking advantage of the learned behavior of a hundred million kids who grew up playing Minecraft. Brilliant. Not for me, but brilliant.

      • In the Save the World mode, there is even MORE resource collecting and looting. Not just trees, but stone, metal, cars, coal, containers from boxes to mailboxes to cupboards. If it exists in STW, you can either loot it, or break it with the pickaxe, or both, to craft weapons and traps from schematics.

  • Lord of the Flies is about a bunch of schoolkids who start out trying to cooperate and end up turning on each other, so I don't know what it has to do with a game where the explicit goal is for everyone to kill each other. Because they both take place on an island?

    • by Nidi62 ( 1525137 )

      Lord of the Flies is about a bunch of schoolkids who start out trying to cooperate and end up turning on each other, so I don't know what it has to do with a game where the explicit goal is for everyone to kill each other. Because they both take place on an island?

      Maybe the winner of Fortnite gets a conch?

    • by mentil ( 1748130 )

      Because deus ex machina is the only thing that can save us from Fortnite?

  • They are enjoying their profits in the real world.
  • ...they have a popular product that is FREE TO PLAY and people are (to me, crazily) spending shit-tons of cash on vanity items.

    It's literally the most ephemeral, non-utilitarian way someone can spend money and is entirely voluntary - it's certainly no more stupid than buying "3 more turns" on Kandy Krush, and King has been raking in >$1bn a year for a while now.

    Pretty sure we've nailed down the new opiate of the masses, though.

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