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News video games 10 April 2021, 16:49

author: Paul Musiolik

Epic Games Store Remains in the Red

The court documents in Epic Games vs Apple case bring a lot of interesting information. It turns out that Epic Games Store has been making nothing but losses so far, and that's not going to change anytime soon.

  1. The pending court case of Epic Games v. Apple brings some interesting information about Epic's store;
  2. We learn from court documents that Epic Games Store made a loss in 2019 and 2020.

Epic Games' long-running dispute with Apple has finally found its way to court. Tim Sweeney's company is trying to prove to Apple that the 30% revenue share it charges on App Store is unfair and monopolistic.

The case pending in the California court is also interesting for many people because of the information Epic Games has revealed in the documents. The bottom line seems to be that EGS is losing a lot of money despite having 160 million registered users, 56 million of which are active each month.

Epic Games Store made a loss of $181 million in 2019, and in 2020 it was already $273 million. The expected loss for 2021 is 139 million. This is due to funding temporary exclusivity of games that appeared in the store, and giveaways. All this in order to gain a significant share in the PC market as soon as possible. Epic predicts that the store will become profitable only in 2023.

It also seems interesting that the 12% revenue share that the company takes from developers who sell their games in its store is fully sufficient to cover the current costs of operation. So one can conclude that if it weren't for Epic Games' aggressive marketing efforts, the store would already be able to make money for itself. However, as long as Fortnite remains a golden egg-laying goose for Tim Sweeney's company, the store will be able to make a loss without negatively affecting Epic as a whole.

  1. Epic Games - official homepage
  2. Apple - official homepage
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