Investors are worried that the popularity of Fortnite is taking gamer playtime and spending from other franchises, such as Call of Duty, Overwatch, and Grand Theft Auto.
An article published on Investor’s Business Daily reveals that Fortnite is having a modest impact on the revenue of major publishers and as a result, publishers will respond by creating competing titles. Considering the popularity of Fortnite, it is understandable that competing investors would show concern and try to emulate another companies success.
Though there are concerns from investors, some analysts downplay the risks Fortnite poses to its competition. Piper Jaffray analyst, Michael Olson believes that even though there will be a short-term impact, publisher shouldn’t be concerned. Instead, they need to create their own battle royale title, or incorporate the game mode into an existing IP. “We believe it is the ‘mode,’ not the game, that has attracted users to Fortnite and PlayerUnknown’s Battlegrounds (PUBG). We therefore expect major publishers to win back engagement as this style of play is included in their existing titles.”
It is hard to deny the impact battle royale games have had on the industry as of late. First, PUBG was released and immediately became a gigantic success. It was the most watched game on Twitch and soon, everyone and their grandparents were playing PUBG. Epic Game Studios saw the success of PUBG and decided to implement a battle royale game mode into one of their titles, Fortnite. Initially thought to be a move to ape off the success of the competition, Fortnite quickly became a massive success as well and overtook PUBG as the most watched game on Twitch.
Investors wanting to ride on the success of the competition is nothing new. But, the fact they are vocally showing concern about the impact games such as Fortnite are having on their revenue is telling. This will probably mean that we will see many more battle royale games in the near future.