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How do free-to-play games make billions every year?

Free, downloadable games seem to the business model of the future. As Epic Games takes over the battle royale genre, Fortnite continues to dominate and rake in the cash.

Fortnite, the world’s most popular video game of last year, is technically still in ‘early access’ and is free to download and play. You can challenge others online, use any weapon you choose, and have every advantage at your disposal. The only difference between you and a paying player is cosmetics and skins.

On the surface this may seem like a business model that doesn’t make sense. Why would players shell out cash when the core experience is identical? Yet, Fortnite has reportedly made over $2 billion in revenue in 2018 alone, making it the most lucrative digital game currently available.

So, how does Fortnite make its money? Whether its eSports competitions, YouTube sponsorships, or collaborations with other big brands, Epic Games has kept ahead of the curb with its business model and maintained a market dominance that other titles can only dream of. We’re here to break down the basics and pinpoint what exactly makes the battle royale title so popular.


What does your money actually get you in Fortnite?

Paying out of your own pocket will get you a ‘Battle Pass’ which gives you access to the top tier of ‘levelling up’ within online matches. Basically, you’ll unlock far more cosmetic items and customisable gear as you progress than a free to play customer would. This model works well because Epic Games still makes a profit, the player still feels they’re earning rewards organically through play, and new items can be put into the game constantly. It’s a system that can be rinsed and repeated – and has since been used in other titles such as Rocket League and Overwatch.

The best part is that it’s entirely optional. Players don’t feel forced to use it and the matchmaking system doesn’t become split off into people who pay for Battle Passes and people who don’t. Games of last generation learnt painful lessons from cutting off content behind paywalls – extra, paid for Halo maps became unplayable due to too small of an audience. A map is no good without anything to do.

There are some items in the Fortnite shop that have fixed prices, and aren’t included in the levelling up system. These usually sell for around £10 – £20, making them particularly lucrative for Epic Games. Again, though, it works because you don’t need it to stay in the game, and there’s no competitive advantage. It’s all optional, which proves successful in games, advertising, and just about anything commercial. If you don’t feel forced into it, you’re far more likely to consider handing over cash.

Unfortunately, that means you can’t blame that low bank balance and questionable spending habits on anyone but yourself.

How does Epic Games keep Fortnite relevant?

Keeping up interest on a game that’s almost solely about one mode can be a tricky task, particularly when the battle royale market has become saturated with copy-cats included in Fallout, Battlefield, and APEX Legends, amongst others. How do you keep players interested and stay at the top of the ever-growing pile?

The answer is in Season Passes, sponsorships, and eSports tournaments. The popular streamer Ninja made a name for himself solely off the back of Fortnite, and Epic Games has since created timely content to coincide with the release of big pop culture products, including Stranger Things, Weezer’s latest album, and the Avengers. This usually either means an exclusive character such as Thanos is playable for a limited time or mysterious areas pop up on the in-game map. This leads to community speculation and discussion as to what’s coming next and keeps the buzz going.

It’s not just about the events happening in game, however. Epic Games has just announced that it plans to put up a total of $100 million in prize money for Fortnite sports events throughout the remainder of this year, making it one of the biggest names in eSports. Such a huge amount of funding makes financial sense, given that eSports is becoming increasingly lucrative with advertisers, sponsors, and TV deals. More prize money means higher stakes and higher revenue – and profits in professional sports will trickle down to the wider public.

Plus, it’s worth keeping in mind that Epic Games has released the game on nearly every platform under the sun – including consoles, PC, and phones, meaning you can play with anyone, regardless of the device they’re using. This is a phenomena we’re also now seeing move to other titles, including Minecraft, Rocket League, and free-to-play titles such as Smite. More accessibility ultimately allows for more players and an increased life span of your title.

Will Fortnite keep its crown for the foreseeable future?

If we could hazard a guess, we reckon it’s most likely that Fortnite will stay the most popular battle royale title for at least the rest of this year. With a solid and loyal following, as well as frequent updates and changes, Fortnite has proven itself to have long lasting charm that others can’t compete with. Plus, the newly announced eSports prize money throws it into a whole new tier of status, one that will cement it as a long-lasting online multiplayer title.

The real winner here is Epic Games. As more titles adopt similar practices, we should probably expect games to have Battle Passes and seasonal content in the coming years – which is by no means a bad thing. Well, except maybe for our wallets, but let’s try not to think about that too much.

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