It doesn't take a budgeting genius to realize that spending $444 million on minimum guarantees in one year to earn just $95 million in just over two years is not a sustainable business. That suggests Epic has earned just $95 million through its standard 12 percent EGS revenue share. In court documents, Epic also said it has paid out a total of over $700 million to third-party EGS developers so far. By contrast, Epic announced last year that players spent only $265 million on all third-party Epic Game Store games combined in 2020. The main driver of EGS' losses, instead, is Epic's generous program of "minimum guarantees." These encompass the advance payments Epic has used to attract so many timed exclusives to its storefront and seemingly also cover the free games Epic makes available to Epic Games Store users every week.Īdd it all up, and Epic ended up paying a whopping $444 million in minimum guarantees in 2020, according to Apple's court filing (though that number could theoretically include future exclusives or free game deals). On the contrary, though-in its own court filings, Epic says that 12 percent revenue chunk has been "sufficient to cover its costs of distribution and allow for further innovation and investment in EGS." You might think Epic is incurring those losses because it only takes a 12 percent cut of third-party game revenues, compared to the industry-standard 30 percent cut on other digital storefronts. Documents and testimony from Epic itself show a $181 million loss for the store in 2019 and projected losses of $273 million in 2020 and $139 million in 2021. The raw numbers, as reported in a "Proposed Findings of Fact and Conclusions of Law" document Apple filed last week, show massive incurred and projected losses for Epic's game download hub, which launched in late 2018. But recent court filings in that case have also given the public a rare glimpse into just how much money Epic is throwing at the Epic Games Store as it struggles to make a dent in the PC marketplace. The bitter court fight between Apple and Epic is primarily focused on the mobile-gaming landscape and Apple's iron-fisted control of the iOS App Store. Google says Fortnite’s in-app purchase swap was a breach of contract, sues Epic. Judge rejects Apple’s arguments for delaying ordered iOS App Store changes.Dozens of states side with Epic in Apple App Store appeal.Bandcamp says it can’t afford Google Play billing, Epic files injunction.Epic strikes back at Apple’s iOS “security” defense in appeals court.
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