What is the story about?
What's Happening?
Epic Games has announced a new initiative allowing Fortnite creators to sell in-game items and pay for increased visibility. This move is part of Epic's strategy to cover operational costs, including server hosting and moderation, as the company has been operating at a loss in recent years. Creators will initially retain 74% of in-game sales, which will later decrease to 37%. The initiative also introduces a 'Sponsored Row' for creators to bid for better visibility in the game's Discover section.
Why It's Important?
This development is significant as it mirrors the business model of platforms like Roblox, where user-generated content is monetized. By allowing creators to earn from their content, Epic Games is fostering a more sustainable ecosystem for its creators, potentially increasing engagement and innovation within Fortnite. This could also lead to a shift in how digital content is monetized across the gaming industry, impacting both creators and consumers.
What's Next?
Epic Games plans to continue refining this model, with changes to revenue sharing and visibility options expected in the coming years. The company will likely monitor the impact on its financials and community engagement, adjusting strategies as needed to ensure sustainability and growth.
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