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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

Trending games “Fortnite” and “PUBG” are helping the gaming industry grow

If you’re ever around a friend who games even occasionally, chances are they’ve mentioned either “PUBG” or “Fortnite.” These games have taken the world by storm within the past eight months, with celebrities and athletes like Drake, Travis Scott, JuJu Smith-Schuster, Ben Simmons, and Karl Anthony-Towns streaming their games for the general public and generating thousands of views. The premise of each game is a 100-person battle royale, in which the last person standing wins – you can play online with your friends or against random competitors in hopes of being the last one remaining. But what does all of this mean for the gaming industry?

According to PC Games N, “Fortnite” and “PUBG” together combine for almost a third of the market share of gamers; that is, of all the people playing video games at a given time, 30% of them are playing “PUBG” or “Fortnite.” One might think that this popularity would take away growth from other gaming companies like Electronic Arts (EA) or Activision Blizzard (ATVI), but the opposite is true. EA shares rose 3% last Wednesday and are up as much as 20% in 2018, and Activision Blizzard’s stock has risen 12% this year.

Blake Jorgensen, EA’s chief operating and financial officer, explains that as more people play these games, the more people will be likely to play other games, which is great for the industry’s future. “Fortnite” and “PUBG” have attracted people of all ages and genders – with cartoon violence, a lack of gore, and no sexual content, it’s kid-friendly but still challenging and stimulating enough for adults. Plus, as more celebrities like Drake play and stream the game, the more fans will be likely to try it out to see what the hype is about.

Additionally, even beyond the video game industry itself, these games have helped the growth of gaming equipment companies. For example, Turtle Beach is a company that sells headphones specifically designed for gamers for a better audio experience that gives them a competitive advantage in games like “Fortnite” and “PUBG.” Quarterly sales for Turtle Beach (HEAR) rose 185% and shares are up 766% in 2018. Noticing Turtle Beach’s successes, Logitech bought headset company Astro Gaming last summer, and in 2018, it has seen its stock rise more than 20% this year. Obviously, this doesn’t touch Turtle Beach, but it’s a promising sign for the company and industry as a whole.

Lastly, this phenomenon is affecting the e-Sports industry as a whole. In the past ten years, gamers have increasingly started to stream their gaming sessions on platforms like YouTube or Amazon-owned Twitch. Newly popular gamer Tyler “Ninja” Blevins recently shattered his own viewer record playing – you guessed it – “Fortnite” at the Las Vegas e-Sports Arena; he and rapper Drake raked in 667,000 concurrent viewers. In addition, Ninja had more social interactions than any other athlete in April, eclipsing celebrities such as Cristiano Ronaldo, Neymar, and Shaquille O’Neal.

Amazon first acquired Twitch in 2014 for $970 million, and according to Fool, it generated roughly $4.5 billion in 2017, which is only expected to rise in 2018 with the rising popularity of “Fortnite” and “PUBG” audiences. Clearly, the e-Sports industry is increasing and becoming more and more profitable.

Many people have never treated video games as a true sport or as having much influence in the world. However, we can see that it is clearly having an influence in the entertainment and technology markets. The popularity of these battle royale games foreshadows a new wave of gaming; plus, with the continued development of virtual reality, sky is the limit for gaming.

Featured image via Flickr/BagoGames


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