Economics

Fortnite’s Digital Goods Are Key to the Future of Global Trade

Huge multiplayer games are true economic exchanges, but persuading governments to let data flow freely may be the ultimate battle royale.

Courtesy: Epic Games

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Last summer, after months of waiting, Chinese internet users finally got access to the online game Fortnite. So YouTube star Alastair Aiken, aka “Ali-A,” did what many of his more than 15 million largely teenage followers around the world fantasized about. He navigated around firewalls and language barriers and logged on to a desolate corner of the Fortnite universe in China. “This is all a crazy experiment,” declared the Brit in a video streamed from his home. One of the world’s highest-paid professional online gamers, he was setting out to battle unwitting new rivals in a far-off land. “Obviously, China have had games for ages, so it’s not like they are going to be utterly terrible or trash at Fortnite,” he said as he launched into his first Chinese firefight. “But …”

With that, Ali-A was engaging in a very 21st century act of globalization. As Fortnite morphed from popular video game into a full-fledged worldwide cultural phenomenon last year—with professional athletes mimicking its victory dances and pop stars cozying up to top players—it generated a lively (and lucrative, for YouTube stars) exchange in tips and tricks. One frequently discussed strategy in online videos and chat rooms amounted to digital arbitrage. American and European players could log on to Fortnite servers in Asia or Brazil to take on less-experienced users and rack up wins and teenage street cred. “Its (sic) just, impossible for me to win bcuz you guys are so good,” vented one Asian player, frustrated at continually being matched against more experienced adversaries.