The outsize success of ‘Fortnite’ has begun to punish the world’s largest videogame makers.
Electronic Arts Inc. EA, -13.31% stock plunged 13.3% Wednesday, and Take-Two Interactive Software Inc. TTWO, -13.76% shares plummeted 13.8% after both publishers predicted worse financial performance in the current quarter than expected. Other videogame makers suffered too, with Activision Blizzard ATVI, -10.12% shares sinking 10.1%, and Zynga Inc. ZNGA, -1.53% stock falling 1.5% before a rebound in after-hours trading following strong earnings. The S&P 500 index SPX, -0.22% fell 0.2% in Wednesday trading.
“Fortnite,” which is made by Tencent Holdings Ltd. TCEHY, -1.49% 0700, -0.11% -backed Epic Games Inc., has had a massive impact on the videogame sector, attracting millions of players and making it the most financially successful free-to-play videogame of all time. Game makers such as Activision, EA and Take-Two have struggled to develop and release games that successfully compete with “Fortnite” as the game has transformed into something of a cultural phenomenon.
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