Fortnite’s success is the suffering of other studios

The success of Fortnite led Epic games to stop supporting Paragon, its MOBA game. However, this is not the only effect Fortnite has had on the gaming industry. According to financial analysts in the industry, Fortnite is likely to make it difficult for many other gmae firms.

In a text to clients earlier this March, KeyBanc Capital Markets analyst Evan Wingren wrote, “We believe the strong growth of Fortnite creates a risky strategy for game publishers and developers. could limit their potential” Wingren added that Fortnite could “affect all AAA titles to some extent” and “potentially there will be inter-studio interplay.” Revenue of multiplayer games from other publishers is losing about 10% due to Fortnite competition.

Fortnite’s popularity has really stood out over the past several weeks. More than 40 million people are playing the game and its popularity has prompted singer Drake to join the Fortnite stream as well. Plus, there are so many professional athletes playing the game that they’re even wearing Fortnite-themed shoes or performing Fortnite-style celebrations.

The game is so popular that ABC television has talked about whether parents should worry about their children playing Fortnite too much. Everyone seems to be talking about the game.

The game will continue to grow strongly over the next few months. Epic games has announced plans to release the mobile version of Fortnite Battle Royale on iOS (Android version will follow later) and Fortnite has already topped the download charts in many regions around the world. The mobile market share will drive Fortnite to thrive. In particular, with an attractive revenue stream, it will help Fortnite continue to be successful.

However, Wingren estimates the gaming industry will be affected by Fortnite, many publishers have embarked on entering the battle royale market, or at least keeping an eye on the series. For example, Battlefield will draw inspiration from numerous Battle Royale titles, while Destiny and Call of Duty publisher Activision says it is “noticing” the trend. Will the Battle Royale mode in these AAA titles be enough to claim Fortnite’s success?

Source: CNBC