Presentation
Epic Games’ flagship franchise, “Fortnite,” is a prime example of the evolution of the video game industry, particularly in its innovative strategies for content monetization, business diversification, and service offerings. The bold choices made by Epic Games and its title have raised significant legal challenges.
In the past, the publisher has been involved in numerous legal disputes, notably its well-known battle with the tech giants Google and Apple regarding access to the Apple App Store and Google Play Store.
More recently, Epic Games has once again faced legal conflict concerning Fortnite, which has been accused of containing elements designed to manipulate young players into addictive behaviors.
I. Fortnite: A feature-rich video game that has captivated millions of players
Fortnite launched in July 2017 with an initial “Save the World” mode, akin to a cooperative zombie survival game. A few months later, the popular “Battle Royale” mode propelled the game to global fame, making it one of the most played games in the world on both PC and mobile.
Developed using the renowned and powerful Unreal Engine, also owned by Epic Games, Fortnite boasts nearly 100 million monthly active players, not counting indirect content consumption, particularly through streaming platforms like Twitch.
Economically, the game generated impressive revenue, reaching $15 billion in its first three years. This achievement is all the more remarkable given that Fortnite redefined the economic models of online games with its free-to-play model and microtransactions.
In 2024, Fortnite boasted 650 million registered players, including 126 million monthly active players, while in 2023 it held the record for the most monthly hours played on PC and consoles.
Video Game Creation & Funding. In the absence of official data from the publisher, industry professionals generally agree that Fortnite’s development cost between $40 and $50 million. Such an undertaking required meticulous planning and financing, as Epic Games had to consider not only future monetization and revenue models, but also the various means available to fund its development. See our guide dedicated to creating and financing a video game: Creating a Video Game – Preparation, Structuring & Funding
Video games and the metaverse. The game’s exponential growth is also explained by the numerous associated developments and innovations: additional modes, events, and collaborations with licenses and franchises on skins and dances. In 2023, a partnership between Fortnite and the luxury group LVMH created online fashion shows and fashion shows within the game. Transformed into a metaverse, the organization of virtual concerts attracting millions of viewers has allowed artists like Travis Scott, Ariana Grande, Metallica, Lady Gaga, and others to perform.
Vbucks, donations and content creations
Economically, Fortnite and Epic Games are diversifying their interactions with their player community, offering in-game funding and support programs for content creators, as well as partnerships with influencers and franchises. They also encourage collaboration through programs dedicated to content creation—such as skins or maps—by the player community.
With its own virtual currency, V-Bucks, which allows players to purchase in-game items, Fortnite lets them buy objects and content, including emotes and skins to customize the appearance of characters and equipment. Accessible through direct purchase with real money, these items can also be awarded through events like the “Kombat Pass,” missions, and challenges.
Legally, video game currencies raise particularly technical questions regarding their status, the potentially applicable tax regime, and, by extension, the issues related to the ownership, exchange, and sale of content within video games. For more information on video game and in-game content ownership, see [link to relevant article].
Skins, virtual currencies, and intellectual property. The creation of skins, maps, and participation in video game competitions with prizes and cash prizes raises significant legal issues concerning the intellectual property of creations, as well as, more generally, the question of ownership of video game publishers’ digital assets. These issues are part of contemporary forms of video game monetization.
Read our publication on this topic: Video Games and Money: New Ways to Monetize a Video Game
Fortnite and Esports
Fortnite esports competitions are primarily organized around the Fortnite Champion Series (FNCS), which features a system of successive qualification rounds leading to regional and then global finals. These competitions attract impressive viewership on Twitch and other online streaming platforms.
Other esports events also showcase Fortnite, including DreamHack, a video game festival offering tournaments with significant prizes and cash prizes, attracting professional esports players from around the world. Furthermore, Fortnite was included in the 2023 Esports Olympic Series, with a shooting event specifically designed for the occasion. It was also among the featured video games at the inaugural Esports World Series, held in 2024 in Saudi Arabia.
II. Epic Games: an innovative and disruptive developer
The Epic Games studio has distinguished itself during its development by taking bold positions that have shaken up the way many institutions in the video game sector operate: challenging the monopoly of GAFAM, a more favorable remuneration system for developers in its store, creating a fund dedicated to creative projects on the Unreal Engine, etc.
Unreal Engine: A licensed video game engine
To date, Unreal Engine is one of the most advanced game engines in the industry, thanks in particular to its graphics capabilities and development tools, which are recognized by professionals in the video game, audiovisual production (film, television), and even related sectors such as architecture.
The Unreal Engine is currently used by thousands of video games and more than seven million developers, responsible for numerous successful titles and franchises: Gears of War, Bioshock, Batman: Arkham Knight, Final Fantasy VII Remake, as well as the upcoming Kingdom Hearts 4 and Mass Effect 4.
Unity Engine. The main competitor in the sector, the “Unity” engine has long been preferred by developers and studios for the efficiency and simplicity of its tools, particularly for mobile games and 2D projects. However, Unity’s new pricing policy now imposes an additional cost on its developers, linked not to the game sale but to its installation (Plus & Personal editions). Combined with technical performance below developers’ expectations, Epic Games’ Unreal Engine now seems to be increasingly preferred by studios.
License Agreement & Intellectual Property. Access to and use of the Unreal Engine is governed by a license agreement whose economic terms vary according to several criteria related to the studios’ revenue. However, the contractual documents strictly regulate the ownership and use of generated content with regard to intellectual property, requiring studios to make an informed and reasoned decision.
Epic Games Store: a video game distribution platform
The Epic Games Store launched in December 2018 as an alternative to existing game distribution platforms, notably Steam. Epic Games attracted developers by offering a more favorable revenue share (88% for developers compared to 70% on Steam) and by offering free games every week to entice players.
The Epic Games Store directly competes with Steam, GOG, and other game distribution platforms. Its strategy of distributing free games and timed exclusives allowed it to quickly gain market share.
The launch of the Epic Games Store was not without its challenges. Epic Games faced legal issues, including accusations of anti-competitive practices and disputes regarding the distribution rights of certain games.
Free Fortnite: a legal battle between Epic Games, Apple and Google.
The legal battle between Epic Games, Apple, and Google began in August 2020 when Epic introduced a direct payment system in Fortnite, bypassing the 30% commissions imposed by Apple and Google’s App Stores. In response, Apple and Google removed Fortnite from their platforms.
The very next day, a promotional video featuring Fortnite characters parodying Apple’s iconic 1984 Macintosh commercial was released, along with an announcement of legal action by Epic Games for anti-competitive practices.
Read about the origins of the dispute and its implications in our dedicated article: Fortnite & Mobile Games: Epic Games’ Battle Royale vs. Apple and Google
In April 2023, the United States Court of Appeals upheld the initial ruling that Apple is not a monopoly, but also ruled that Apple cannot prevent developers from directing users to third-party payment options.
In December 2023, Google was also found guilty of unlawful monopoly, the tech giant abusing its control of the mobile app market to the detriment of developers – a decision that was appealed.
Legal proceedings continue with numerous appeals, the implications of which could once again shake up the entire mobile gaming industry and the mobile app market as a whole.
Fortnite: Addictive Behaviors & Deceptive Business Practices
Netherlands & Child Protection. In the latest legal developments related to Fortnite, the Dutch Consumers and Markets Authority (ACM) has fined the studio over one million euros for its operation of the game, citing the illegal and aggressive marketing practices found in much of its content.
Several expressions and mechanisms, such as countdown timers, are designed to pressure the game’s primary audience—young children—into making quick purchases.
This penalty echoes a previous ruling in the United States by the Federal Trade Commission (FTC) in December 2022 for deceptive marketing practices and addictive behaviors related to Fortnite. The publisher was ordered to pay over $520 million to address two of the alleged practices.
Deceptive business practices: The FTC accused Epic Games of using deceptive interfaces to entice players, including children, into making unintentional purchases. This includes, for example, one-click purchases without confirmation, which are prohibited for online purchases through platforms, as well as confusing payment interfaces that discourage users from disputing or requesting refunds for these purchases—dark patterns.
Addictive behaviors: The FTC also criticized the video game studio for designing Fortnite with elements that could foster addictive behaviors in young players. For example, game mechanics that encourage players to play for extended periods.
These measures aim to protect consumers, especially children, from abusive business practices and to encourage more responsible gaming.
