Business Operations Business Models

How Does Fortnite Make Money (Business and Revenue Model)

The Fortnite business model

How Does Fortnite Make Money?
Here’s what you should know:
  • What is Fortnite, and how does Fortnite work?
  • How does Fortnite make money?
  • Sale of V-Bucks (Fortnite’s in-game currency)
  • Video Game Sales (Fortnite: Save The World)
  • Fortnite Crew (Monthly Subscription Service)
  • Battle Passes
  • Selling Merchandise
  • Fortnite’s profit and revenue
  • What is the Fortnite business and revenue model?
  • Fortnite’s funding and valuation

How does Fortnite make money if it’s free? Here is a full, in depth, breakdown of their five (5) revenue streams and the different products and services they offer, as well as the Fortnite business model, their year over year revenue, and how Fortnite works.

What is Fortnite, and how does Fortnite work?

Fortnite is an online, free to play (F2P), video game developed by Epic Games that is available in three (3) different game mode versions.

Developed and released in 2017 by Epic Games, Fortnite has become one of the most popular games in the world with more than 350 million registered players worldwide.

How Fortnite works is: To play Fornite, players must first download the game through PlayStation, Xbox, Nintendo Switch, PC, or Mobile.

Once downloaded, players can choose from three (3) different game mode versions: Battle Royale, Save the World, and Creative. Each is equipt with its own upgrades, add-ons, in-game purchases, etc that players can choose to do so if they wish.

Some of Fortnite’s competitors include Roblox, Minecraft, Candy Crush, Pokémon GO, League of Legends, VALORANT, and other popular online games.

Epic Games Store
Source: Epic Games | Fortnite

How does Fortnite make money?

Fortnite has more than 350 million registered players worldwide, per reports. So how does Fortnite make money off of all those players?

Below is a breakdown of how much money Fortnite makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 5 ways of how Fortnite makes money (in 2022):

Fortnite has a revenue model that makes money in five (5) ways – the sale of V-Bucks (Fortnite’s in game currency), video game sales, monthly subscriptions, battle passes, and selling merchandise.

#1. Sale of V-Bucks (Fortnite’s in-game currency)

Fortnite makes a bulk of its money through the sale of V-Bucks on the Fortnite platform.

What are V-Bucks? V-Bucks is Fortnite’s in-game currency that allows users to purchase and use this currency to buy things like outfits, emotes, wraps, pickaxes, and Battle Passes.

V-Bucks can be purchased in-game, through Epic Games, or at partnering retailers. You can see how much V-Bucks cost below.

Fortnite V-Bucks Prices:

  • $7.99 to $79.99 depending on the quantity of V-Bucks purchased (prices may differ at retailers)
Fortnite V-Bucks Prices | Fortnite Business Model | How Does Fortnite Make Money? | How Does Fortnite Work?
Source: Epic Games

#2. Video Game Sales (Fortnite: Save The World)

Fortnite has multiple game modes. You have Battle Royale mode, which is Fortnite’s free play. Then you have Fortnite’s PvE action building co-op campaign mode, called Fortnite: Save The World. Which costs roughly $15.99 through Epic Games website.

Available on PlayStation 4, Xbox One, macOS, Microsoft Windows, and Classic Mac OS.

Fortnite Save The World Price:

  • $15.99 on Epic Games website

Note: Fortnite makes money from this like a traditional video game sale.

#3. Fortnite Crew (Monthly Subscription Service)

In addition to V-Buck and video game sales, Fortnite also makes money through a monthly subscription service they offer, called Fortnite Crew.

Some of the perks included in this subscription membership are things like 1,000 free V-Bucks per month, battle passes, and new monthly crew packs.

Fortnite Crew Price:

  • $11.99 per month
Fortnite Crew Price | Fortnite Business Model | How Does Fortnite Make Money? | How Does Fortnite Work?
Source: Epic Games

#4. Battle Passes

Another money maker for Fortnite is selling Battle Passes.

What’s a Battle Pass? A Fortnite Battle Pass is a seasonal pass good for exclusive content and rewards in Battle Royale mode.

A Battle Pass costs 950 V-Bucks. In Fortnite, 1 V-Buck = $0.01 USD; equivalent to $9.50. Which lasts for 1 season (typically two to four months long).

#5. Selling Merchandise

Fortnite also sells its own merchandise through its online branded Amazon store where they sell Fortnite toys, collectibles, apparel, and more – costing up to $120+ in price.

Fortnite Merchandise | Fortnite Business Model | How Does Fortnite Make Money? | How Does Fortnite Work?
Source: Amazon

Fortnite’s profit and revenue

In 2020, Epic Games reported Fortnite generated $5.1 billion in revenue. As for 2021, Epic Games has not released or reported any official reports regarding the games’ earnings.

Note: Because Epic Games, Inc. is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Fortnite business and revenue model?

Fortnite makes money through a few revenue models that they combine within their company, they are:

  • Gaming as a Service (GaaS) business model
  • Free to play (F2P) business model
  • Transaction based revenue model
  • Subscription based business model
  • Licensing business model
  • B2B2C (partnerships) business model

Fortnite’s funding and valuation

According to Epic Games’ Crunchbase profile, Epic Games, the developer of Fortnite, has raised $7.1 billion over 12 rounds and has a valuation of $31.5 billion as of April 2022.

It’s unclear how much of those funds raised went to Fortnite and the development of Fortnite, as well as how much Fortnite is valued at by itself.