If I told you that Fortnite experienced a 48% drop in revenue, you would think that Fortnite was on the decline wouldn’t you? Well, Fortnite did in fact see a dramatic drop in revenue for January, but don’t be alarmed. This drop has nothing to do with players jumping ship to another Battle Royale (Apex Legends was actually released in February), as Fortnite has reportedly broke its own concurrent players record this month. So why did Fortnite’s revenue drop so significantly?
Superdata recently reported that for the month of January, Fortnite’s revenue plummeted 48%. It’s a good headline, one that is 100% accurate. But there’s logical reasons why this happened, so let’s take a look at the facts. December was a big month for Fortnite, the king of Battle Royale’s saw a big spike in revenue due to the release of their Battle Pass for season 7 and the holiday break. These events contributed towards an all-time monthly revenue record for Fortnite. By January, kids are back at school, adults back to work and the Christmas season of giving gifts is over. Sales and revenue will obviously decline and be comparable, or slightly below, pre-holiday figures. When you compare a record month of revenue, to one of the slowest sales months for most industries, then of course you will get a dramatic drop in monthly revenue. This is exactly what has happened and it’s across all games. The same article states that Super Smash Bros. Ultimate sales were down by whopping 83%, proving that the holiday season plays a major factor in sales and revenue.
If we were to compare revenue for January 2018 to January 2019, I guarantee that these figures would be much closer and truly reflect the status of the game. In fact, I bet revenue for 2019 revenue would be significantly higher than 2018.