A $1.25 billion investment in Fortnite game maker Epic Games Inc. highlights that large traditional investment firms such as KKR and Kleiner Perkins believe the e-sports category has substantial room to grow. The investment, which values Epic at $15 billion, makes Tencent’s $330 million investment for a 48% stake look attractive.
It’s interesting to read that the revenue model relies on many small transactions that players make throughout the game:
“Epic released the [Battle Royale mode] free, but makes money by selling virtual costumes and dance moves for the game’s characters. The company has raked in more than $1 billion in revenue from these so-called microtransactions over the past year, according to estimates from SuperData.”