A series of documents from the Apple vs Epic legal case have surfaced revealing a host of details on the Epic Games Store.
Documents have began to come out from the current Apple vs Epic legal battle which included Apple’s lawyers responding to Epic’s lawyers statement that it was comparable to the App Store.
“Epic Games Store is unprofitable and not comparable to the App Store” the lawyers began, rather bluntly, “and will not be profitable for at least multiple years, if ever”.
Apple’s legal team also go into details breaking down Epic Game Store’s finances “Epic lost around $181 million on EGS in 2019. Epic projected to lose around $273 million on EGS in 2020. Indeed, Epic committed $444 million in minimum guarantees for 2020 alone, while projecting, even with ‘significant’ growth, only $401 million in revenue for that year. Epic acknowledges that trend will continue in the immediate future: Epic projects to lose around $139 million in 2021”.
This means that Epic has invested around $493 million since 2019, Epic has already stated that they have a host of “unrecouped costs” amounting to around $330 million.
“At best, Epic does not expect EGS to have a cumulative gross profit before 2027”.
Of course the Epic Game Store is considerable profitable in a number of different ways so it looks as if it is able to write off these impressive expenditures.
A portion of the legal case against Apple is that they want to have Epic Games Store available on iOS.
“While Epic’s commission is lower than Apple’s, it does not offer all the services that Apple provides. EGS is essentially a storefront—it lacks the integrated features that make the App Store a desirable platform for consumers and developer”.
“Epic’s allegations thus depend on the notion that Apple’s design and implementation of its own intellectual property can constitute exclusionary conduct. That theory fails as a matter of law”.
Either way, it seems that Epic can afford these investments, we will just have to wait and see what is in store or the future of the Epic Games Store.
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