Morgan Stanley analyst Matthew Cost notes that Epic Games announced "Creator Economy 2.0," a new program to allow developers to earn money through Fortnite Creative Mode that will use a payout pool of about 29% of Fortnite gross revenue. While Epic previously made it possible for independent developers to earn money inside of Fortnite, Morgan Stanly highlights three reasons that the new payout system highlights competition with Roblox’s creator economy, namely ghat competing products are starting to launch fully, that existing gaming audiences and economies can be leveraged into the Metaverse and concern that the take rate to creators could be a competitive lever given that Roblox paid 22% of bookings to developers in 2022. The firm has an Underweight rating and $26 price target on Roblox shares.
Published first on TheFly
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