To fight Fortnite, Activision is retooling how its games work

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 strategy includes releasing updated versions of its games and new modes of play.

“(Fortnite has) been a really important catalyst in attracting new gamers to gaming,” said chief executive Bobby Kotick.

Fortnite has quickly signed up tens of millions of players. 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.

Santa Monica, Calif.-based Activision, known for Call of Duty and Candy Crush, disappointed inves- tors with its forecast on Thursday. The company expects earnings of US$2.51 a share in 2018, excluding some items. That compares with the average analyst estimate of US$2.61. Revenue also will fall short of Wall Street projections.

Still, its earnings in the latest quarter beat expectations. It reported profit of 38 cents a share, excluding certain items. That compared with an average prediction of about 34 cents. Adjusted revenue also was ahead of projections, at US$1.38 billion.