Tencent-backed Fortnite’s popularity motivates gaming rivals

Activision Blizzard Inc., battered by the runaway success of a rival video game, is fighting back.

The video-game giant is looking to mimic the popularity of Epic Games Inc.’s Fortnite, a shoot-’em-up with a “battle royal” format. Activision’s counterattack strategy includes releasing updated versions of its games and new modes of play.

“Fortnite is definitely a lot of competition right now,” chief executive Bobby Kotick said. “It’s been a really important catalyst in attracting new gamers to gaming.”

Fortnite has quickly signed up tens of millions of players and taken the video-game industry by storm. The title also has become a cultural phenomenon, with everyone from professional basketball players to the rapper Drake embracing it. Chinese internet giant Tencent Holdings

Ltd. bought a 40 per cent stake in closely held Epic Games in 2012.

Key to Fortnite’s success is the battle-royal format, which lets 100 players compete at once until there’s only one person standing. The approach also is used by another popular game, Player-Unknown’s Battlegrounds.

The good news for Activision is the games are bringing new users into the industry, including women and people who play on devices other than traditional game consoles. Kotick said the success of Fortnite will inspire changes in Activision titles.

“The idea of new competition is going to be a staple for gaming,” he said.

Activision expects earnings of $2.51 a share in 2018, excluding some items. That compares with the average analyst estimate of $2.61. Revenue also will fall short of Wall Street projections.