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HBR On Strategy

Fortnite: Turning a Meteoric Rise into Sustained Growth

May 1, 2024
Explore how Epic Games transformed from a video game company to a platform, monetizing Fortnite through in-game purchases. Learn about their unique growth strategy, challenges in the gaming industry, and Tim Sweeney's vision for a metaverse.
20:18

Podcast summary created with Snipd AI

Quick takeaways

  • Epic Games monetized Fortnite through in-game microtransactions, not game fees, and expanded into a platform with the Epic store and premium services.
  • Fortnite's success prompted Epic Games to disrupt industry norms by offering a fair revenue share and envisioning a metaverse integration with VR and AR.

Deep dives

Success of Fortnite and Epic Games' Transition

Fortnite's extraordinary success revolutionized Epic Games, registering 250 million users by 2019 and generating $5 billion in its first year through innovative monetization strategies like in-game microtransactions. This success prompted Epic Games to transform into a platform company, launching the Epic Store and premium services to differentiate themselves.

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