Fortnite Is Still Wreaking Havoc On the Video Game Industry

Take-Two Interactive Software Inc. and Electronics Arts Inc. both tanked in U.S. trading after the video-game publishers posted disappointing numbers, yet another sign that the phenomenal success of Fortnite is looming large on the industry. Take-Two, the maker of Grand Theft Auto, said revenue in the quarter ending in March will be $450 million to $500 million, when analysts anticipated $609.1 million. Its shares slumped as much as 14 percent, the most since December 2009, while Electronic Arts dropped 16 percent following a similar shortfall late Tuesday. Rivals Ubisoft Entertainment SA and Activision Blizzard Inc. also fell. Game publishers have been thrown for a loop by the phenomenal success of Fortnite, a shooting game from Epic Games Inc., which counts Chinese social media giant Tencent Holdings Ltd. as a major shareholder. The game uses a "battle royale" format that lets users start a new competition immediately after they are eliminated, an addictive feature that keeps users playing -- and just hanging out chatting -- for hours on end.