The news: Fortnite joins the list of high-profile tech properties to flee China, following the recent departures of LinkedIn and Yahoo, per Bloomberg.
How we got here: Tencent Holdings, an investor in Epic Games (the maker of Fortnite), shut down all its China-based servers after running a trial version of the game for three years. The game never made any money in China.
Why this matters: Fortnite’s failure to launch in China is a red flag for global companies seeking to cash in on China's $45 billion gaming market, which is expected to hit $55 billion with 781 million gamers by 2025, per Niko Partners.
The country’s regulators have not signed off on a single new video game release since July. China is asking for more scrutiny over gaming-related content, ostensibly to protect children’s mental health and eyesight.
The big takeaway: Global Big Tech’s exodus from China is gaining serious momentum. Unlike LinkedIn, which was running a deprecated version of its social media service, or Yahoo, which was already in the process of divesting its various Chinese properties, Fortnite is a popular and profitable game with global appeal.
11 Times SquareNew York, NY 100361-800-405-0844