AlphaAtlas
[H]ard|Gawd
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Citing an anonymous source, TechCrunch claims that Epic Games, the developers behind the free-to-play game Fortnite, made $3 billion dollars in profit this year. The company is also reportedly worth about $15 Billion, which puts them in the same league as the largest publicly trading gaming companies, like Activision-Blizzard, Ubisoft, EA, and Take-Two. This is great news for Epic's shareholders, like Tencent and Disney, and that upward momentum may continue into 2019. TechCrunch notes that the figure smashed analyst's predictions of about $2 billion in profit in spite of unforeseen trouble in the Chinese gaming market, and that Fortnite Season 7, which is potentially one of the company's biggest money-makers to date, may not even be included in that figure.
However, the investment cards haven't always been stacked in Epic's favor... China's Tencent, the maker of blockbuster chat app WeChat and a prolific games firm in its own right, became the first outside investor in Epic's business back in 2012 when it injected $330 million in exchange for a 40 percent stake in the business....Why would a proven company give up such a huge slice of its business? Executives believed that Epic, as it was, was living on borrowed time. They sensed a change in the way games were headed based on diminishing returns and growing budgets for console games, the increase of "live" games like League of Legends and the emerging role of smartphones.
However, the investment cards haven't always been stacked in Epic's favor... China's Tencent, the maker of blockbuster chat app WeChat and a prolific games firm in its own right, became the first outside investor in Epic's business back in 2012 when it injected $330 million in exchange for a 40 percent stake in the business....Why would a proven company give up such a huge slice of its business? Executives believed that Epic, as it was, was living on borrowed time. They sensed a change in the way games were headed based on diminishing returns and growing budgets for console games, the increase of "live" games like League of Legends and the emerging role of smartphones.