In the 1990s and 2000s, video game developer Epic Games had a string of mid-size successes. But the release of Fortnite Battle Royale in 2017 changed the company’s path forever.

The game was a blockbuster. By 2019, Fortnite had registered more than 250 million users, with 10 million concurrent users. But Fortnite’s phenomenal success raised a new question for Epic: How could they turn this singular hit into a series of growth opportunities?

In this episode, Harvard Business School associate professor Andy Wu explains why Epic monetized Fortnite through micro-transactions within the game, rather than charging a fee for the game itself. He also discusses how Epic’s creation of a platform, the Epic store, and a premium subscription service built on Fortnite’s success and helped to distinguish their brand from other free-play games.

Key episode topics include: strategy, growth strategy, R&D, strategy execution, video games, fortnite, epic games.

HBR On Strategy curates the best case studies and conversations with the world’s top business and management experts, to help you unlock new ways of doing business. New episodes every week.