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Business Insider

Led by Fortnite: Battle Royale, the so-called free-to-play video game market surged to US$87.7 billion in revenue during 2018 – more than triple the earnings of blockbuster games released by major publishers last year.
In fact, free-to-play titles accounted for nearly 80 per cent of all spending on digital games in 2018.
That’s according to the latest research from Nielsen’s SuperData tracking arm, which measures data from the gaming, AR, and VR markets. 
SuperData found that games played on smartphones account for an increasing majority of play time, and free games still rule mobile app stores.


Fortnite remains the most popular game in the world at the start of 2019, enjoying more than 80 million active users per month.
“Free” games like Fortnite earn revenue through micro transactions, usually in the form of small purchases that boost a player’s performance or reward them with a special item.
Those incremental purchases add up to big spending: mobile games earned US$61.3 billion in digital sales in 2018, while games on traditional video game consoles and PC earned US$48.4 billion combined. 
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Free-to-play and mobile games are especially popular in Asia; SuperData reports that 62 per cent of all spending on free-to-play games comes from the Asian market.

Despite China blocking the release of new video games in the country for most of the year, the Asian mobile games market managed to grow by 18 per cent during 2018, compared to 13 per cent growth for mobile games in North America and Europe.
In fact, seven of the top 10 grossing free-to-play games belong to Asian publishers, with the exceptions being Fortnite, League of Legends, and Pokemon Go.
Fortnite earned more than any free-to-play title in 2018, with an estimated US$2.4 billion in revenue, spread between releases on PC, mobile devices, and all three major video game consoles.
While free-to-play games are mostly associated with mobile and PC, Fortnite has helped make the trend more popular on consoles.


According to SuperData, free-to-play console games saw a 458 per cent increase in revenue in 2018, driven primarily by Fortnite, making it the fastest-growing model of digital video game.
(The popularity of Fortnite had other benefits for console gamers, too: In 2018, Sony began allowing cross-play to let the massive free-to-play community connect across different platforms.)
Free-to-play games even eclipsed blockbuster video games from major studios in 2018.
Digital revenue for “premium” games totalled US$17.9 billion last year, but that’s less than a third of what was spent on free games. Moreover, they find the vast majority of their audience in the West.
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According to SuperData, North America and Europe account for 80 per cent of all spending on “premium” games. Customers are also trending towards more digital purchases for high-quality games, rather than buying physical copies.
Though video game culture remains focused on big releases, revenue reports show the industry trending towards more free releases and “games as service” models such as Fortnite.
With the mobile market generating more revenue than traditional gaming platforms, game developers will continue to explore how to best capitalise on the mobile audience.


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Video gaming

Fortnite, other free-to-play games account for 80pc of video game revenues in 2018, and industry has taken note

ATLANTA, GA - NOVEMBER 16: Students from Louisiana State University and The University of Washington compete in the online game Fortnite during DreamHack Atlanta 2018 at the Georgia World Congress Center on November 16, 2018 in Atlanta, Georgia. Chris Thelen/Getty Images/AFP == FOR NEWSPAPERS, INTERNET, TELCOS & TELEVISION USE ONLY ==

Fortnite was the biggest earning game of 2018. The makers of blockbuster video games are taking notice of its business model, making money through micro transactions. Photo: Alamy

Xbox, PlayStation and Nintendo face uncertain future, with online games like Fortnite earning billions of dollars

Consoles such as the PlayStation (above) face stiff opposition from online internet games such as Fortnite. Some publishers see streaming as the future of the industry. Photo: Alamy

CW9569 CeBit, youngsters play with the Microsoft XBOX [20AUGUST 2018 FEATURES] CREDIT: ALAMY

KFJTTR Bangkok, Thailand - October 28, 2017 : Nintendo Switch showing its screen with Super Mario Odyssey game. [20AUGUST 2018 FEATURES] CREDIT: ALAMY

MWKG0P African American family at home sitting in sofa couch and playing console video games together. [20AUGUST 2018 FEATURES] CREDIT: ALAMY

H9KW7F History of the evolution of technological joystick [20AUGUST 2018 FEATURES] CREDIT: ALAMY

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Entertainment


Free-to-play games out-earned so-called ‘premium’ games last year, taking in US$87.7 billion mostly through micro transactions
Asia produced seven of the 10 top selling games of 2018, despite China blocking new games



Almost 80 per cent of video game earnings came from free-to-play games last year, most of it earned through micro transactions. Asia produced seven out of the top 10 games of 2018, despite China blocking new games.


Fortnite

Mobile gaming

Technology

Fortnite, other free-to-play games account for 80pc of video game revenues in 2018, and industry has taken note

Free-to-play games out-earned so-called ‘premium’ games last year, taking in US$87.7 billion mostly through micro transactions Asia produced seven of the 10 top selling games of 2018, despite China blocking new games

Free-to-play games out-earned so-called ‘premium’ games last year, taking in US$87.7 billion mostly through micro transactions

Asia produced seven of the 10 top selling games of 2018, despite China blocking new games