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A gamer plays the video game ‘Fortnite Battle Royale’ developed by Epic Games during the ‘Paris Games Week’ on October 26, 2018 in Paris, France.
“Fortnite” — a free-to-play online video game — has shaken up the gaming industry in recent years, catapulting itself beyond the sector into the wider socio-cultural landscape.
Its runaway success has led some to question the future of top video game companies such as Electronic Arts (EA) along with Take-Two Interactive, as intense competition inside the gaming space dents sales of industry heavyweights.
Earlier in February, shares of EA along with Take-Two were hammered after they released third quarter earnings. Activision Blizzard also saw major declines for its shares of which day.
Analysts say the problems faced by these top gaming firms go beyond the rising competition coming from Fortnite, which is usually made by Epic Games.
“I think the problem is usually … not just Fortnite,” said Tom Wijman, senior market analyst at Newzoo, a marketing analytics firm specializing in games along with esports. “The main reason is usually of which expectations are too high along with Fortnite is usually an easy thing to point your finger at — nevertheless of which’s not the cause of the problem.”
Wijman said of which every game is usually currently being compared to Fortnite, “nevertheless the way Fortnite exploded in terms of popularity, there is usually no comparison.”
of which might be “foolish” to assume of which Fortnite is usually “the one along with only reason” for the troubles of which the top gaming companies are facing, said Daniel Ahmad, an analyst at Niko Partners.
Take-Two Interactive declined to comment due to This specific story, while Electronic Arts along with Activision Blizzard did not respond to CNBC’s requests for comment.