Fortnite Proves More Important Than Cryptocurrency to Big Tech Companies
Popular video game Fortnite was a more important topic than cryptocurrencies during the latest corporate earnings season, as measured by the number of times each term came up during company calls with analysts.
The online game was mentioned 54 times between analysts and executives at the various tech giants in the S&P 500 index. Including the term, ‘battle royale,’ Fortnite’s game category, bumps this number to 95. On the other hand, Bitcoin and other cryptocurrencies including Ethereum, Ripple, Litecoin, and Monero were mentioned only 45 times, according to MarketWatch analyst transcripts.
Fortnite’s massive success this past year has caused a number of investors and analysts to take notice as Epic Games, the game’s producer, earned $296 million in sales from the game across PC and mobile categories, according to Superdata research. Fortnite has over 40 million monthly active users and remains the most watched game on Twitch.
Executives from EA and Take-Two Interactive (TTWO) have commented that Fortnite is a favorable commodity for the industry given the game’s ability to attract first-time gamers due to the free-to-play model, which Epic Games manages to profit on through season passes and cosmetic upgrades.
Nvidia CEO Jen-Hsun Huang has mentioned that Fortnite’s success goes far beyond expectations and that it played a role in the recent uptick of worldwide GPU sales, which has also been correlated to the rise in cryptocurrency mining.
During the company’s most recent earnings call, Huang stated the company’s $289 million in crypto mining-related sales will likely fall by about two-thirds in the current fiscal quarter as more competition floods the markets. He also emphasized the ramifications of the ongoing crypto craze on the company’s core customer base.
“Crypto miners bought a lot of our GPUs in the quarter and it drove prices up. I think that a lot of gamers weren’t able to buy into the new GeForce as a result.”
While both industries currently compete for computing resources, many see a natural overlap between the gaming and cryptocurrency communities. This has led to a number of startup companies and established entities exploring new ways to bridge the two worlds, including applications for blockchain-based in-game rewards, alternative payment systems for streamers and unique integrations of crypto into the widely popular esports ecosystem.
For the time being, however, big tech companies will continue to focus on the game titles that drive massive profits and industry awareness.