Fortnite takes a hit, revenues down by 48 percent in January

Well, it might come as a surprise to many that Fortnite’s revenue from games across platforms has come down by a substantial 48 percent between December 2018 and January 2019. The report points out to the fact that December was the peak period for multi-player third-person shooter and Fortnite witnessed a huge upswing in revenues as the holidays pushed the revenues to record levels.

While 48 percent drop in revenues is a big fall, it is by no means the end of Fortnite and one should refrain from writing a premature obituary of Fortnite. It is a known fact that with a free-to-air module, Fortnite relies heavily on in-game purchases of digital goods and the dip in numbers doesn’t actually mean declining user numbers or less play overall. It just means that people didn’t actually spend on virtual goods. Those purchases are purely cosmetic in nature and are not the right metric to judge the health of the game.

The report further adds that the game like Fortnite is cyclical in nature with players rotating in as fresh content debuts. Last year in December, Fortnite’s Season 7 coincided with the festive and that acted as the perfect recipe to drive the revenues up.

With the launch of Season 7, players had the perfect opportunity to buy new virtual goods, explored a reimagined map and had more time to play and try new devices out and as it turned out, by January, players were itching for the arrival of the next update.

Speaking to TechCrunch, Sensor Tower’s head of mobile insights Randy Nelson said, “This is no doubt due to the fact that Season 7 began in December. We historically see a significant increase in Fortnite mobile revenue during the months when a new season debuts, as the player base purchases Battle Passes en masse.”

The gaming industry has been witnessing a gradual decline year-over-year and if Epic wants Fortnite to hit the meteoric highs in terms of users and revenue growth, it will have to keep its momentum all the way through 2019, as competitors are getting ready to have a piece of the pie.

Source: TechCrunch

Image: Shutterstock 

Fortnite takes a hit, revenues down by 48 percent in January
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