'Fortnite' is one of the most popular games on the planet right now and this free-to-play game has managed to bring in millions of micro-transactions, that have boosted the developer's revenues exponentially. 

© Epic Games

While there have been similar short-lived gaming sensations like 'Candy Crush' and 'Pokemon Go', 'Fortnite' has broken all records. Between the release of the current version in September and at the end of May, 'Fortnite' brought in more than US$ 1.2 billion, according to SuperData Research. 

© Epic Games

The is run by Epic Games Inc. that was founded by Tim Sweeney twenty-seven years ago in his parents' basement. The game is on track of generating more than US$2 billion this year, valuing the company from US$5-8 billion, according to Bloomberg Billionaire Index. 

Because of Fortnite's success, SuperData estimates that games featuring a battle royale mode will earn 12% of all gaming revenue in 2018. 'PUBG' (PlayerUnknown's Battlegrounds), another competing game with the Battle Royale format has sold more than 50 million copies so far and has 400 million active players.  

© Tim Sweeney / BCCL

Fortnite's iOS version made an average of US$2 million per day over a 10-day period following the start of Season 5 earlier this month. Epic is giving back some of the generated money and has promised US$ 100 million in total prize money for the games 2018-19 game season. 

Instead of purchasing a full-fledged game for an average of US$40, users can buy online virtual currency, V-Bucks that can be exchanged for in-game add-ons. While this business model isn't new, 'Fortnite' has raked in billions and there's no stopping. 

© Epic Games

Buying skins and cosmetics such as new character costumes or things like hats, tattoos and weapon skins, let players make their own virtual characters. In May itself, these micro-transactions have generated US$ 318 million in terms of revenue for the company. 

The game has seen immense growth, after accessibility was made free on all gaming platforms. In fact, the game had been streamed for 580 million hours on Twitch. The game is very addictive, in fact, the developer added a warning to the game's loading screen cautioning students to set the screens aside.

© Epic Games

Chinese conglomerate Tencent has a 40 percent stake in Epic Games. Interestingly, the company also has a tiny stake in Bluehole, the company behind 'PUBG'. It is not yet known how much is 'Fortnite' affecting the Tencent Games' balance sheet though.  

Source: SuperData Research