The free-to-play battle royale game from Epic Games, Fortnite, has pushed its net worth up to $8 billion, making founder and CEO Tim Sweeney a certified billionaire.
Bloomberg’s analysis of Fortnite’s success places Epic’s value between $5 and $8 billion on their Billionaires Index. The figures are based on the company’s total business and all its assets, but Fortnite took top honours by bringing in $2 billion this year alone. Epic had $825 million back in 2012 when Tencent carved 40 percent off Epic’s pie in shares, showing just how much taking the leap into the battle royale genre has paid off.
An analyst stated that even if Fortnite managed a mediocre performance it could still generate a $1 billion return putting Epic’s value at $7.5 billion. Based on the trading multiples of major publishers such as Electronic Arts and Activision Blizzard, they could potentially meet a $14 billion asking price.
The franchise has garnered unexpected revenues with mobile version generating a daily $2 million return, with $1 billion generated from in-app purchases alone. This has allowed Epic to use the success of Fortnite to reduce the price of the Unreal Engine, making it more affordable and enticing for developers to work with the platform.
Love it or hate it, the battle royale genre has made a massive impact on the industry and will continue to do so for some time. So much so that AAA studios are adopting the mechanic and adding to their staples.