FORTNITE TAKES A $6.3BN BITE FROM ACTIVISION BLIZZARD
Activision Blizzard’s (ATVI) stock has been in a tailspin since 12 March, losing over 10% of its value. According to Morgan Stanley analyst Brian Nowak, Epic Games’ new battle royale eSports title Fortnite has caused the downward trend in ATVI’s share price, stripping it off $6.4 billion of market value.
By one estimate, Fortnite now sports as many as 45 million players and rakes in $1.2 billion in annual revenue. On top of that, the game is the fourth most played eSports title for February according to research firm NewZoo. The game has outstripped established games such as PUBG and Counter-Strike: Global Offensive as one of the most played titles of the month.
Meanwhile, Jeffries Senior Vice President Timothy O’Shea has said that Fortnite may temporarily steal engagement from games, such as Call of Duty and PUBG. However, a long-term domination could be exaggerated, O’Shea continued.
Another equally reassuring point for Activision Blizzard is that their portfolio is diverse and it does not exactly go head on with a title such as Fortnite. ATVI’s shooters Overwatch and Call of Duty (CoD) operate in separate segments of the industry, in terms of both genre and platforms, with CoD remaining the leading first person shooter for consoles.
Still, the battle royale game genre is probably here to stay and may establish itself as a mainstream eSports title in future.