New season of Fortnite proceeds get distributed to Ukraine humanitarian aid

Epic Games will be committing all its Fortnite proceeds from 20 March, the day the new season of the game kicks off, until 3 April to humanitarian relief for people affected by the war in Ukraine. All real-money Fortnite purchases, such as V-Buck packs, Fortnite Crew, gifted Battle Passes, and cosmetic packs such as the Voidlander Pack sold for real money, will be distributed.

The aid will be given to humanitarian relief organisations such as the UN Children's Fund, UN World Food Programme, UN Refugee Agency and Direct Relief, a US-based non-profit. "They are on the ground providing emergency aid, including health support, food and clean water, essential supplies, legal aid, and shelter," Epic Games said. It also plans to include more organisations in the coming weeks. 

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In a corresponding move, Microsoft joined Epic Games in this effort by committing its net proceeds from all sales of Fortnite content on Microsoft Store during the same period. As of yesterday (21 March), Epic Games and Xbox have collectively raised US$36 million in humanitarian relief funds to support people affected by the war in Ukraine. MARKETING-INTERACTIVE has reached out to Epic Games and Microsoft for comment.

Epic Games and Microsoft join a slew of companies and even sporting organisations that have taken action against Russia or showed their support for Ukraine. For instance, in addition to shutting down its operations in Russia, McDonald's closed 108 of its stores in Ukraine for the time being. Together, these stores account for about 2% of its sales, 9% of its revenue and 3% of its operating income, and is expected to cost the fast-food restaurant US$50 million a month CNBC reported. 

At the same time, Starbucks paused all Russian business activity and closed its cafes there temporarily. It will also continue to provide salaries to its 2,000 employees during the closure. Meanwhile, Yum! Brands has ceased operations of KFC company-owned restaurants in Russia and is finalising an agreement to suspend all Pizza Hut restaurant operations in Russia, in partnership with its master franchisee. It will also redirect all profits from operations in Russia to humanitarian efforts.

On the retail end, UNIQLO, a brand owned by Fast Retailing, first said that it had no plans to suspend its operations and will continue to operate all 50 stores in Russia, while monitoring the situation. However, it reversed its decision just days after and suspended all operations in Russia. Other retail and luxury brands including Levi's, Inditex, Hermès, Chanel, Cartier, LVMH, and Kering have temporarily suspended operations in Russia. LMVH's Louis Vuitton has pledged to donate US$1.08 million to refugees, adding that it was "deeply touched by the tragic situation unfolding in Ukraine".

Chanel also cited "increasing concerns" regarding the current situation as well as the "growing uncertainty and the complexity to operate", the Financial Times reported. Meanwhile, Levi said about 4% of its total net revenues in 2021 were derived from Eastern Europe, half of which was related to Russia, Reuters reported. The company also halted new investments in the country. Agencies including WPP, Omnicom Group, Publicis Groupe, IPG, and Accenture have also suspended their operations in Russia.

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