500 million dollars is the sum that Epic Games Store had to swallow for get a place with gamers against the giant Steam!
However, as we all know, Epic Games and Apple are in a legal dispute for a few months already, and it costs as much in terms of money as sensitive and confidential information about the two companies.
Indeed, Epic Games, publisher of the game Fortnite, sued Apple and its App Store for “abuse of a dominant position” .
So discover through this article the ins and outs of this crazy battle between these two companies which shake up the gaming-tech universe and that will impact the international digital economy.
The Fortnite publisher's platform is running at a loss
Fortnite is very successful. But, despite that, Epic Games records very large losses arising from the investment made in the distribution platforms.
Furthermore, Epic Games had to retain many customers through the provision of free games. Strategy, we hope for them, effective but risky which has not yet borne fruit. It is therefore estimated today that Epic Games' investment, at a loss, is around 500 million dollars due to a strategy based on reduced commissions for developers, the provision of free games every week and creation of many partnerships … but all this at a cost and makes the platform today a platform that is therefore not profitable !
Note that the trial between the two giants (Apple and Epic) will literally be a turning point in the digital and tech industry, especially that of online stores .
The publisher of Fortnite, Epic Games Store, intends to overtake Steam in the purchase of online games. In effect, its customer acquisition strategy is currently based on the provision of free online games as well as many promotions for the purchase of games. Something to overshadow Steam.
A leadership race is on!
Better compensation for publishers
Epic Games' strategy is also based on their store, namely the EGS, via much better revenues that are offered to publishers . A strategy that will surely bear fruit in the long term in this opposition to Steam.
In addition to all this, the Epic Games Store is recruiting players in order to considerably increase its community and thus overshadow Steam.
Free games every week
On the side of the players, there is therefore only positive!
Indeed, the latter derive the advantages, in particular with the recovery of free games each week that are made available to them .
Here is the list of free games available each week on the platform: ESG free games .
Not profitable before 2027
the Epic Games Store studio is already in a deadweight loss of $ 500 million and according to forecasts is not close to making the project profitable before 2027.
In more detail, the figures provided and discovered are as follows:
- EGS investment in 2019 of $181 million
- In 2020 investment of 273 million dollars
- In 2021 investment of 139 million dollars, and all at a loss!
But for Epic Games, this is not loss but really a long-term investment strategy and who should be profitable from 2027 at the earliest.
Yes, the platform must make this type of large investment in order to enter a market that is monopolized by Steam and in which the players have already anchored their habits.
This is the whole strategy of EGS: upset the codes, change mores and claim the place of leader.
And you, where do you buy your games?
Specific to each, so you will find today several platforms to buy your games online , whether on the leading platforms or the smallest ones.
Note that each offers its own user experience, its own ergonomics, its own payment style and that you will not find identical games on all platforms.
It's up to you to choose the one you prefer in order to buy your games online or simply have them for free or discount!
Up to you !