After a brief break, we’re back looking at the gaming business world. This week we have more updates to the ongoing Tencent story, Fortnite on iOS earns $300 million in 200 days, acquisitions, downsizes, and much more. Find all the stories below in this week’s MMO Money.
Fortnite on iOS Earns $300 Million in 200 Days
Fortnite continues to dominate the world of gaming having earned $300 million just on iOS in 200 days, with $20 million of that coming from the week after Season 6 launched. This news comes from a new Sensor Tower report. The last one on Fortnite iOS showed the game had brought in $100 million in 90 days. Quite a big difference between the two. While this is massively impressive, it actually isn’t the fastest game to reach $300 million on iOS, that record goes to Pokemon Go which got there in just 113 days. However, just as Fortnite iOS was able to surpass Clash of Clans, which it had failed to beat at the 90-day mark, it is entirely possible the game will also surpass Pokemon Go at the next milestone. Fortnite’s biggest rival, PUBG Mobile has reached about $47 million on iOS since it started offering in-app purchases on April 15th.
A whopping 65% of the revenue from the 200 days came from the United States. Around the world, players spend an average of $1.5 million per day on just the iOS version of the game, and that number has gone up to $2.5 million since the launch of season 6. On Android, it has been estimated that Fortnite has brought in over $60 million since it started beta in early August.
Source: Sensor Tower
Epic Games Acquires Game Security Firm Kamu
Epic Games has acquired a Helsinki based game security and anti-cheating firm named Kamu. They offer publishers a range of services that include multiplayer game management, game security, game telemetry, and anti-cheat technology that is used by 100 million PC players around the world. They’ve been working with Epic on Fortnite to ensure that the multiplayer is fair for all players. The amount Epic acquired Kamu for has remained undisclosed.
Source: Games Industry
UK Games Industry Contributes £2.87 Billion to the Economy
A new report on the effect of tax relief in the UK has revealed that the UK games industry contributes £2.87 billion to the economy. It also supports 47,620 full-time equivalent jobs. Games that were part of the tax relief system generated £156 million in tax revenue. This comes from £45 million that was paid out in tax relief, meaning that for every £1 invested by the government in the games industry, another £4 was added to the economy. In many cases, the games never would have been made if it weren’t for the tax relief that the UK offers. The number generated was higher than children’s TV which brought in £2.73 for every £1. It certainly wasn’t the highest however, with animation (£4.44), high-end TV (£6.10), and film (£7.69) bringing in more. Still, the UK has proven that tax relief for video games is incredibly profitable for the people of the United Kingdom. All of these numbers come from 2016 and are likely higher today.
Source: Games Industry
We’ve been following Tencent quite a bit recently as they’ve been massively impacted by the new regulations in China and it is time for yet another update to the story. So far this year, the company has seen $190 billion wiped from its market value.
At the beginning of October, Tencent announced they would be restructuring for the first time in six years. The company has decided to consolidate three content business groups to form a new group for cloud and smart industries. The company said in a statement: “[Tencent will] further explore the integration of social, content and technology that is more suitable for future trends, and promote the upgrade from consumer internet to industrial internet.”
Tencent has also started using facial recognition software to check the age of people playing Honour of Kings in China. Honour of Kings has previously faced backlash for causing addiction in young players. In July last year, Tencent introduced a daily play limit of one hour for children under 12 and two hours for those aged 13 to 18. They also added real-name recognition to the game last month. The trial is limited to thousands of players in Beijing and Shenzhen.
Finally, to round out the Tencent news for this week, the company has announced that they’ve invested $316 million in Bilibili. This will give Tencent a 12.3% share of the company which owns the Overwatch League Hangzhou team. The company itself is a video sharing service but it is also the owner of a League of Legends team. So, while things may be looking somewhat grim for Tencent at the moment they are still investing in other companies, which is always a good sign.
Source: Games Industry, Games Industry, Games Industry
Media Company Advance Acquires Majority Stake in Newzoo
Advance, the media company behind Reddit, Conde Nast, Charter Communications, and many others now has a majority stake in game industry analysts Newzoo. Alongside the majority stake purchase, Advance is planning on making a significant investment in the company. With the investment, the company plans to increase its US presence, beginning with the existing office in San Francisco. Newzoo also plans on opening an office in New York, where Advance is located, in the future.
Source: Games Industry
South Korean Network OGN Bringing Esports Programming to North America
Esports Network OGN has announced that they’re investing around $100 million to broadcast live esports events in North America, with a part of this beginning with PUBG. They will be broadcasting the debut of the National PUBG League (NPL). The NPL is planned to start in January with a prize pool of $1 million. To house the league, OGN has started construction of a 35,000 square foot arena in Manhattan Beach, California.
Infinite Esports & Entertainment Lays off 19 Employees
Infinite Esports, a holding company with a number of esports related subsidiaries including the Overwatch League Houston Outlaws team, has laid off 19 employees and replaced their President. The new President of the company has come out and said that they grew too fast. Going forward, 70 employees will remain at the company, including the previous President who will remain involved as co-founder and owner.
Source: Games Industry
FIFA 19 Now Gives You the Odds on Packs
For the first time ever, FIFA 19 is disclosing pack odds…and it isn’t great news. The trouble with it lies in the FIFA Ultimate Team (FUT) and the Ones to Watch promotion. The promotion includes 23 of the highest profile and most promising transfers from across the world. Special versions of Cristiano Ronaldo and Riyad Mahrez are included. These highly sought after cards have a less than one percent chance of dropping. The inclusion of the odds comes after EA ran into trouble with the Belgian Gaming Authority with FIFA 18’s lootboxes.
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