Fortnite Fortnite was surprisingly here in 2018. The grandchild of private-owned epic games quickly became a pop culture phenomenon, generating more than $ 1 billion in revenue since its release just one year ago. The free-to-play battle royal game quickly became a theme for conversation, not just among players, but among analysts and leaders in the gaming industry. Many wondered much about Fortnite expanded the game market or steal share from established players like Activision Blizzard (NASDAQ: ATVI) .
Activision reacted with a fight royal entry for itself, a mode called Blackout for Call of Duty: Black Ops 4 . The private beta version of Blackout recently premiere, and the early reviews call it an unqualified win for Activision. Someone went even further, suggesting that Blackout could be a Fortnite killer. "
And worthy Opponent
Excitement over the First Response of Blackout resulted in an analyst who said Fortnite may have peaked, based on his assessment of the competition's latest releases. Benchmark analyst Mike Hickey said in a note to clients that:
[The] coming Call of Duty: Black Ops IIII [sic]: Blackout Battle Royale (BR) mode, PS4 beta released yesterday, far beyond our expectations. from the streamers was sensational, in our opinion. Popular Twitch streamers gusted on the quality and fun of the drama while subscribers commented Blackout a Fortnite and / or [ PlayerUnknown's Battlegrounds] PUBG ]
PUBG was the original battle royal game but was quickly obscured by Fortnite's success .
According to Hickey, the beta version of Call of Duty attracted nearly 400,000 viewers on Twitch, the popular video streaming area owned by Amazon.com . The analyst believes that " Blackout will be a potentially big hit, and drive up to $ 500 million in incremental annual recurring digital money." Based on players' early responses to the game, Hickey Blackout "wants to migrate investor focus from Fortnite -led [battle royale] competitive threat to the possibility of [battle royale] when driving meaningful growth."
Was Fortnite the phenomenon already winding?
Even without Blackouts entry to the growing battle royal genre, Fortnite growth had already been slow. After setting up a double-sided and triple-digit growth every month since the release and generated more than $ 1
Fortnite has recently released a new battleground in July – which in previous cases had resulted in growth growth. It was not the case in July, according to media intelligence company SuperData, as noted:
Fortnite s peak may be behind us. Fortnite revenue only increases 2% from June. The growth was the message, despite the fact that Epic released season 5 of the match campfire in the middle of the month.
Even in light of the challenge presented by the royal genre, Activision was stuck in the game schedule. When the company reported the results for the second quarter, it not only hit its own forecast, but also the analysts' consensus estimates. Revenues increased to $ 1.6 billion, an increase of 1% the following year, while earnings per share of $ 0.62 exceeded expectations of $ 0.36. This helped Activision achieve a record first half in terms of revenue, net bookings (net income minus postponements) and earnings per share.
With the ongoing full release of Call of Duty: Black Ops 4 early next month, we can only see more entries from Activision.
John Mackey, Managing Director of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool's Board. Danny Vena owns shares of Activision Blizzard and Amazon. Motley Fool owns shares of and recommends Activision Blizzard and Amazon. Motley Fool has a disclosure policy.