New court documents have revealed that Epic Games are haemorrhaging money from their new storefront.
Epic Games has made it their mission to infiltrate the pc gaming marketplace, in an effort to do so, Epic Games has been spending millions on weekly game giveaways for users to redeem and keep on their accounts. Epic also offers a “minimum guarantee” to developers as an inciting proposition to make their game a timed exclusive on their platform. However, new court documents have revealed that Epic Games are haemorrhaging money from their new storefront.
Epic Games and Apple are currently enthralled in a legal battle over the iOS App Store rules that saw the iOS version of Fortnite being pulled from the storefront in August of 2020. Within the proceedings new information surrounding Epic Games’ spending habits and revenue streams have come to light. As initially reported by PCGamer, Epic have spent to the tune of $330 million on exclusivity deals, both timed and wholly exclusive. It was no secret that Epic Games was spending a lot of money in order to secure a foothold in a market that is dominated by Steam.
Apple claim, citing various depositions with Epic Games’ business leads, that the Epic Games Store will have lost around $600 million by the end of the 2021. Epic Games, however, spun it with the expectation that the Epic Games Store will be profitable by the end of 2023. It is important to note however, that the Epic Games Store is relatively young in its life cycle. As it does miss a lot of features their competitor Steam has made the new baseline. So, the idea the Epic Games Store is not profitable, is not necessarily indicative of a failing platform.
If any gaming company could take on Steam, it would be Epic Games, as they own the now infamous cash cow: Fortnite. And as it stands Epic Games seems to be more than happy siphoning their Fortnite money into their new platform. Even if that means taking a small financial hit in the short time. As long as they maintain their long term goal of nudging Steam off of the top spot when it comes to PC gaming marketplaces.
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