Key Partners
- Game developers on Unreal and on EGS (FACT license + store).
- Fortnite island creators — engagement payouts (FACT UEFN).
- Console platforms — reached via the 3.5% program (FACT).
- Mobile stores — iOS and Android are in the EGS share terms (FACT).
- No published console revenue-split percent — left blank on purpose.
Key Activities
- Operate Fortnite and creator islands (FACT UEFN).
- Build and license Unreal; quarterly royalty reports (FACT).
- Run EGS distribution and Epic-processed payments (FACT).
- Apply 88/12 only after $1M net per product per year (FACT).
- Optional First Run / Now on Epic programs (FACT FAQ).
Key Resources
- Unreal Engine and the EULA / royalty terms (FACT license).
- Fortnite as the live-service consumer brand (product).
- EGS reach — 295M+ customers (FACT store page).
- Epic account across game, engine, and store (product).
- Developer Portal for royalty reporting (FACT news).
Value Propositions
- Fortnite — free to start; islands inside the game (FACT UEFN).
- Unreal — $0 royalty on the first $1M lifetime gross (FACT).
- Then 5%, or 3.5% with Launch Everywhere (FACT).
- EGS — 12% only after $1M net per product per year (FACT).
- Engine royalty waived when Epic processes the sale (FACT).
Customer Relationships
- Self-serve players in Fortnite (product).
- Quarterly royalty reports in the Developer Portal (FACT).
- $1M store threshold is automatic — no opt-in (FACT FAQ).
- Threshold follows the title across transfers (FACT FAQ).
- UEFN — apply, publish, then engagement payouts (FACT).
Channels
- Epic Games Store — PC, Mac, iOS, Android (FACT).
- Fortnite client as the island channel (FACT UEFN).
- Consoles — outside 88/12; inside the 3.5% carrot (FACT).
- Developer Portal for reports and store publishing (FACT).
- First Run / Now on Epic as timed channel programs (FACT FAQ).
Customer Segments
- Players — Fortnite and store customers (FACT 295M+ store).
- Developers under $1M lifetime — royalty-free (FACT).
- Developers above $1M — 5% or 3.5% (FACT).
- EGS sellers — 88/12 only after $1M net in the year (FACT).
- Fortnite island creators — payouts, not engine seats (FACT).
Cost Structure
- Developer 88% after the store threshold — a take-rate cost (FACT).
- Engine royalty waived on Epic-processed sales (FACT).
- Fortnite live-ops and island payouts (FACT promise; pool $ not published).
- Unreal development as ongoing R&D (INFERENCE; no opex line).
- No published company cost, margin, or headcount (private).
Revenue Streams
- Fortnite — free start; in-game and creator payouts (FACT; no $ total).
- Unreal — 5% above $1M lifetime gross; first $1M free (FACT).
- 3.5% with Launch Everywhere; $0 royalty on EGS-processed sales (FACT).
- EGS — 88/12 after $1M net per product per year; resets Jan 1 (FACT).
- No published consolidated revenue (private).