An important factor that is pulling gamers towards Fortnite is the fact that it can be downloaded free of cost on mobile devices or gaming consoles, unlike its rivals. On the other hand, Epic Games is also making a killing by employing the strategy of in-game purchases.
Despite launching Call of Duty: Black Ops 4 in October with record initial sales, Activision seems particularly affected by the success of Fortnite. During the third quarter, the company reported 345 million in monthly active users, down 10% from last year. On a sequential basis, monthly active users edged down 2%.
Activision Blizzard stock dips on weak Q3 earnings
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Meanwhile, Take-Two’s stock plunge comes amidst the success of its newly-launched Red Dead Redemption 2, stressing the importance of innovative marketing strategies as much as gaming content.
The repercussions of Fortnite’s success is evident in game retailers too. Last week, GameStop (GME) shares tumbled 7% after the company slashed its full-year earnings guidance, driven by a dip in games by the big publishers.
The stock has plunged 28% so far this year.