Epic has raised $ 500 million in the Epic Games Store, and does not expect to make a profit until 2027

Epic has raised $ 500 million in the epic games store, and does not expect to make a profit until 2027

Several documents have come out of the ongoing Apple vs. Epic lawsuit in the state of California, and here's a full summary of Apple's (pretty decent) defense core. As part of this, Apple's attorneys executed what can only be called a drive-by in the Epic Games store, which Epic's attorneys had claimed was comparable to the Epic Games. 39; App Store.

"Epic Games Store is not profitable and is not comparable to the App Store," the lawyers began quite bluntly, "and it will not be profitable for at least several years, if ever." Ai!

But the interesting thing is that Apple's legal eagles are breaking down how unprofitable the Epic Games Store is. “Epic lost about $ 181 million to EGS in 2019. Epic expected to lose about $ 273 million to EGS in 2020. In fact, Epic pledged $ 444 million in minimum guarantees for 2020 alone, projecting even all with "significant" growth, only $ 401 million Epic acknowledges that this trend will continue in the immediate future: Epic projects will lose about $ 139 million in 2021. "

If we take the lowest figures, this adds up to an investment by Epic of $ 493 million from 2019, and Epic itself has acknowledged that "unrecovered costs" will amount to at least $ 330 million. "At best, Epic doesn't expect EGS to have a gross profit accrued before 2027."

Of course, all of this has to be taken into account in what Epic is trying to do with Epic Games Store, and the fact that Epic is a hugely profitable company in other respects: you can afford to write these sums as colorful as an investment in the future and, if all goes well, Epic Games Store will become a key player in gaming distribution and highly profitable.

Part of the case of Epic v. Apple is that it wants to have the Epic Games store on iOS, and the other reason the store continues to grow is that the percentage of Epic commissions in the store is 12%. This contrasts sharply with the observation that, well, iOS and Epic Games Store are two completely different things: “While Epic’s commission is lower than Apple’s, it doesn’t offer all the services that Apple offers. EGS is essentially a showcase … it doesn't have the built-in features that make the App Store a desirable platform for consumers and developers. "

Apple's winks end up pointing out that Epic's basis for claiming Apple's exclusive conduct is that the iOS store was not designed to host other stores. Which, I mean, is clear. "Epic's claims therefore depend on the notion that Apple's design and implementation of its own intellectual property may constitute exclusive conduct. This theory fails as a matter of law."

It seems that Epic Games Store inspires poison to some, but it's not really bad these days: and it’s hard to argue with the constant free games, which are arguably a huge element of this high cost (apparently only one of them made a profit). Either way, one thing can be said about this half a billion: Epic can afford it.

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