Fortnite Becomes Even More Immersive?
Epic Games, the company that created Fortnite, recently acquired a video chat application known as Houseparty. Houseparty’s features allow users to group chat with friends, a program very similar to FaceTime, the well known iPhone application. However, Houseparty’s integrated games and screen sharing capabilities engage users rather than merely providing a platform to communicate. The in-app game features, as well as its nearly 35 million downloads, represents Epic Games desire to create a realistic virtual experience.
Experts value Epic Games at more than $15 billion with Tencent Holdings and Disney among its top investors. Before acquiring Houseparty, the company purchased 3Lateral, a video graphic design company that focuses on creating incredibly realistic human CGI. In 2018, Epic Games earned roughly $2.5 billion on their groundbreaking game Fortnite. This game submerses players into a massive battle royal arena, where friends can play together against other users around the world. Since its inception, Fortnite amassed 250 million users, which has drawn millions of fans to streaming platforms like Twitch and Youtube.
Amazon owns twitch, and Google owns Youtube. Although YouTube allows individuals across the globe to publish and view videos, both companies have been battling to take control of the online streaming space. Historically, Epic Games has internalized many accessory features that enhance their game experience. For example, Epic utilized Fortnite’s popularity to gain several Epic subscribers. Considering that Twitch and Youtube have realized significant site activity and revenue from Fortnite, the deal between Epic Games and Houseparty indicates Epic’s proclivity to provide these services.
Houseparty and Fortnite share similar user demographics, as both applications connect and appeal to younger children whereas social media applications like Facebook target a much older generation. Although Houseparty’s first quarter installation numbers declined by about 1.4 million users in 2019, the company’s similar customer base coupled with their mutual vision of supplying a more interactive social network platform exhibits the potential benefits of the merger.
Written by James Mueller, Edited by Matt Durborow & Alexander Fleiss
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