MMO Money: Fortnite on iOS Earns $300 Million in 200 Days

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 on iOS

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

 

Tencent Update

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.

Source: CNBC

 

Infinite Esports & Entertainment Lays off 19 Employees

Overwatch Arcade Changes We'd Like to See - Overwatch Battle Royale

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.

Source: Gamasutra

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MMO Money: Champions Online Subscription Controversy and GTA V on the Decline

GTA V on the decline as the game is starting to show its age. Meanwhile, Fortnite is continuing to smash records as it is shown that Battle Royale players are more invested in their games than other gamers. Star Citizen made the news for a $27,000 ship pack, and we got the latest game charts from Superdata.

Champions Online Creates Controversy with Subscription Changes

Champions Online Nightmare Invasion Event

You don’t usually hear much about Champions Online in the news. The game is silently carrying on as it always has. But on June 1st the game found itself in a bit of a controversy over announced changes to subscriptions. In fact, it was going to drop subscriptions altogether. While there were some fears that this was signaling the beginning of the end for Champions Online that actually wasn’t what had fans up in arms. The new premium pack that was going to replace subscriptions had one thing, that fans are massive fans of missing, Freeform character slots. Fans were so vocal about their displeasure that Cryptic has delayed the changes to address the issue.

 

Bless Online Launch Disaster

In case you’ve been living under a rock, you may not have heard that Bless Online had a disaster of a launch. Endgame content was missing, features you’d only see in bad mobile games were there…it was and still is a mess. If you want to learn more about Bless, its messy launch and why you really shouldn’t be surprised by it check out the article I did on the history of Bless Online. But right now you might be asking, why is this in the business column? Well, that’s because Steam was giving back refunds past their usual limits. So the bad launch is also hurting Neowiz’s bank account.

 

Funcom Q1 Report

Funcom has had one of its best quarters in a very long time thanks to the sales of Conan Exiles, which they also pointed out is now officially Funcom’s best selling game of all time. Secret World Legends didn’t get much of a mention, just a promise of more content and events. They also reminded everyone that they are working on a new game, Mutant Year Zero: Road to Eden, which is due out in the second half of this year.

 

Star Citizen Offers Ship Pack Worth $27,000

star citizen like eve online

Once again, if you’ve been living under a rock you may have missed Star Citizen releasing a ship pack that they’re selling for $27,000. Even worse, to see what the pack offered you had to have already spent $1000. Did anyone buy one? The world may never know. What we do know is that a lot of people had something to say about it. In their defense, Star Citizen claimed that this pack was requested by players. If you’re curious what you could have bought instead here’s an article we did right after the news broke.

 

PUBG Sues Fortnite

The battle royale of the Battle Royale games has taken a bit of a nasty turn as PUBG has sued Fortnite developers Epic Games. The lawsuit, which is taking place in Korea, states that Epic Games plagiarized PUBG’s interface and in-game items. Many fans see this as a low blow from PUBG Corp as well as an attempted money grab and an attempt to keep Fortnite out of the Korean marketplace. It will be interesting to watch how things progress in this case while Fortnite continues to dominate gaming.

 

Battle Royale Gamers More Likely to Spend

Data from Newzoo shows that Battle Royale players tend to spend more money on games than other gamers. They’re also more engaged than those who play other core competitive games like CoD, CSGO, Overwatch, LoL…and so on. 88% of Battle Royale players are likely to spend money on games vs 75% in these other competitive games. Also, more than 80% of Battle Royale players watch live streams of game content. It’s 67% for competitive games.

From the report, we’ve also learned that Fortnite appeals to a younger, more casual audience vs PUBG. PUBG players are more likely to identify themselves as core gamers.

 

Superdata April Report on the Gaming Industry

GTA V on the Decline

Fortnite is continuing to break records for yet another month. But the real story from Superdata for April is that GTA V is finally starting to show its age. In fact, GTA V Online has been declining every month so far in 2018. This is most likely due to the popularity of Fortnite and the lack of new content from Rockstar. Meanwhile on mobile Honour of Kings brought in $185 million in revenue in April. In comparison, Fortnite made $296 million on console, PC, and mobile in that same time period.

 

Tencent Gets Majority Stake in Path of Exile Creator

Tencent continues its domination of the gaming world by getting a majority stake in Path of Exile’s creator Grinding Gear Games. In the announcement, they quickly tackled any concerns that this would mean the game would be changing by saying that the studio would remain independent.

 

Lootbox Roundup

Talk about lootboxes seems to have calmed down some in the last couple of weeks, but that doesn’t mean that there’s nothing to talk about. The first news is that Webzen has decided to pull Mu Origin out of the Netherlands over lootboxes. The game will no longer be playable in the country as of June 20th. In the announcement, Webzen directly stated that this was in response to the recent decision from The Netherlands Gaming Authority against in-game lootboxes.

EA has also taken a bit of a stance against lootboxes, at least in Battlefield V which they’ve promised won’t have them. They also said the game won’t have premium passes. What they haven’t said however is what will be replacing both of those things in their business model.

Finally, GamesIndustry.biz put out a fantastic article on some things the president of the ESA said recently about lootboxes. In a speech at the Nordic Game Conference, he compared the lootbox controversy to the WHO’s gaming disorder crusade and the US government’s attempts to link video games and violence. He also spoke out against government regulation, effectively saying that the government couldn’t possibly understand well enough to have input. It’s an interesting article if you’re invested in the lootbox controversy.

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2017 Games Industry by the Numbers

At the end of January, it looked like we had all the information about the business of online games for 2017 that we were going to get. So imagine our surprise when a ton of new data was dropped in our lap at the end of April. I’m a big fan of r/dataisbeautiful so I squealed in joy as it meant that it was time for a part 2. Up ahead you’ll see a lot of infographics and a lot of data as we look at 2017 games industry by the numbers.

The infographics used in this article were created by NewZoo and Filmora. The data was collected by NewZoo, Business Insider, and a number of esports dedicated sites. To make it easier to read we’ve broken the larger infographics up into individual segments. Not only does this make it easier to look at the data it means we can talk about each part one at a time.

 

Number of Gamers Worldwide

There are over 2 billion gamers around the world, a number that has been climbing every year. Half of those two billion gamers come from the Asia-Pacific region alone. In 2018 it is anticipated that there will be 2,341 million gamers. By 2021 that number will go up by nearly 400 million people.

 

Top Countries by Revenue

As stated above, the Asia-Pacific region accounts for more than half of the global gaming market (52% to be exact). That’s $71.4 billion just from that market. It’s anticipated that in 2018 China will account for 28% of all consumer spending on games. A majority of the spending in the Asia-Pacific region is in mobile gaming. Newzoo is anticipating that the mobile market in that region will go up $9.7 billion in 2018. North America is the next highest and the growth in that market has also been mostly driven by mobile games. While we do see the same trends in Europe, all told Europeans are less likely to spend any money on mobile games than North Americans who spend 1.6 times the amount on average.

 

Looking at individual countries we can clearly see that China stands out above the rest. In the number two spot is the United States, followed up by Japan. Japanese gamers, however, actually spend more on mobile games. The Japanese mobile game market is nearly the same size financially speaking as North America, however, it is working with about one-third of the number of gamers. The average spent per player in Japan is 1.5 times higher than North America and 2.5 times higher than in Western Europe. In Europe, Germany and the UK both stand out above the other countries in the region.

 

Who is Playing

It’s also interesting to see who is gaming broken down by gender and age. Gaming has for a long time been considered a form of entertainment meant for boys and men. But with 46% of the market being made up of women, it’s clear this isn’t the case at all anymore. As you might expect, this number varies greatly depending on the genre, but that’s something we’ll dive into in the next segment down. The 21 to 35-year-olds make up the largest demographic by age with 35% of players falling into that category. In fact, 15% of all gamers are women between the ages of 21 and 35. Surprisingly the 51-65 age range also makes up 15% of all gamers. This number is a lot higher than you would anticipate. But mystery games and puzzle games are very popular with this older demographic. Also, the advent of games like Pokemon Go, which they can share with their kids and grandkids, means older people are getting into gaming to bond with their family.

 

What Kinds of Games do they play

That brings us now to the question of what types of games are being played broken down by gender and by platform. Unfortunately, this section has a typo that is repeated several times and every time I look at it this is all I can see, GAH! Anyway, moving on to the data…

It’s clear that men and women have vastly different tastes when it comes to games. Sports appear in the top three for men on console and mobile while it isn’t anywhere to be seen for women. On the other side, arcade games appear on the chart for women in console and mobile and don’t make the list for men at all. Strategy games are the one area that brings, almost, all of us together. The only area they don’t make the list is for men on consoles. On the whole, women prefer a wider variety of games than men. Men only have 4 different genres on the list compared to women with 5. Shooters, which make the top 3 for every platform for men don’t make the list at all for women.

Women prefer more casual games on mobile than men. Puzzle and Arcade both being on the list suggests that they’re looking for fun, easy to play games. The type that you can play a level then go about your business and come back to when you have the time.

It’s also interesting to see that sports games don’t make the list for PC while they do for mobile and console for men. First, there’s the fact that very few sports games are released on PC. The last major sports game released on PC was in November. While other platforms have 22 sports titles released since then. But that only tells part of the story. If you go to Steam you’ll find tons of sports titles, but most of them aren’t very well known and come from indie studios. Sports games have never done particularly well on PC and maybe that has something to do with the people who own them rather than the games themselves.

 

We’re actually only about 1/3 of the way through all the data at this point. I don’t know about you, but I need a break and a bit of a breather before we keep going with more. So keep a look out for part 3 where we’ll look at the top companies by revenue, the best selling games, and more. Then the final portion will be focused on esports.

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