$ 11.6 million for 38 games, so Epic buys users

Fortnite is a hen that lays golden eggs

Epic Games accuses Apple of monopolistic practices due to the fact that the company charges as much as 30% commission for all purchases made through the AppStore. What’s more, it does not allow you to install applications from outside the store on your devices, as is the case with Android smartphones from Google. Epic intends to prove that these costs are unjustified, as Spotify recently convinced the European Commission. It is hardly surprising, because according to the documents provided, Fortnite is a hen that lays golden eggs. In 2018, Epic made a net profit of $ 3.7 billion, and in 2019 another $ 1.8 billion. At that time, the revenues generated by the company’s other games were marginal. No wonder the company does not want to give up 30% of its revenues on the Apple platform.

Interestingly, Epic wanted to make a transaction related to Google. Fortnite was not available in the Play Store for a long time, due to the same commission for purchases as in the AppStore, but eventually both companies managed to get along. Before that happened, an offer was made that Google gave up its commission, and in return Epic would prepare a Fortnite version for the Stadia platform. Ultimately, however, Google did not agree to such conditions, but Fortnite appeared in the PlayStore in April 2020. However, he never made it to Stadia.

$ 11.6M for 38 Free Games

There was also another interesting table in the court documents. Epic announced how much it paid for 38 games that were available for free on the Epic Games Store between December 2018 and September 2019. Payment for publishers of individual titles did not depend on the number of copies sold, and it was a fixed rate that totaled USD 11.6 million. Warner Bros. was paid the most for Batman Arkham, it was $ 1.5 million. It was also the most popular title, which was “bought” nearly 6.5 million times. The least $ 0 was paid for Metro: 2033 Redux. $ 700,000 was earned by Polish 11bit Studios for the release of This War of Mine and Moonlighter.

Thanks to these efforts, the Epic Games Store has gained nearly 5 million new accounts, which means that the cost of obtaining one user is only $ 2.37. It is enough for everyone to buy the game for $ 20, thanks to the 12% commission, the cost of acquiring the user will be returned. As it turns out, on average, only 7% of such accounts buy a game in the future, so in order for the costs of acquiring users to pay off, they must spend much more. This is one of the reasons why the shop itself is not profitable until today. Unfortunately, not all data has been released, because Epic has given away over 100 games in recent years, including GTA V, which probably broke the popularity record.

source: The Verge


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