Epic Spending Hundreds of Millions on Game Store: Reports

A story yesterday on DSOGaming said a legal filing called Epic Games Proposed Findings of Fact and Conclusions of Law from the Epic Games v. Apple case says the Epic Games Store burnt through $181 million in 2019 and $273 million last year. We could not find that in the document, but a story today on PC Gamer repeats those figures, and cites additional sources for more calculations. We're just going to pass them along without claiming to understand how they arrived at some of these conclusions:
Thanks to Epic's big legal fight with Apple, we learned this week that Epic committed around $444 million to Epic Game Store exclusivity deals in 2020 alone. Phew.

More precisely, that's $444 million on "minimum guarantees" for games that release on the Epic Games Store but stay off of Steam for a year. A "minimum guarantee" is just another way to refer to an advance: It means that Epic guarantees the publisher a certain amount of money whether or not their game actually sells enough to cover it. For example, Epic put down $10.45 million for Control.

Apple says that Epic lost $181 million on the Epic Games Store in 2019, projected a loss of $273 million last year, and projects another loss of $139 million this year.

In its end-of-year report, Epic said that players spent $700 million on the Epic Store in 2020, but third-party game sales only accounted for $265 million of that spending. That $444 million in advances to third-party devs isn't close to being recouped, then. Some of those deals are surely for games releasing in the future, but according to Apple's learnings, Epic is going to eat "at least $330 million in unrecouped costs from minimum guarantees alone" if you consider 2019's deals, too.

As for how much the Epic Game Store will have lost in total by the end of 2021, factoring in exclusives and all other expenses, projections say it's less than $600 million. Just a bit of spending money, then.
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32.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 13, 2021, 13:46
Kxmode
 
32.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 13, 2021, 13:46
Apr 13, 2021, 13:46
 Kxmode
 
Cutter wrote on Apr 11, 2021, 11:34:
Fornite revenue has been on the decline for the last several years. It's like WoW. I doubt there will be a precipitous drop off anytime soon but it'll definitely keep shrinking as the newest latest greatest things continue to arrive. Nothing lasts forever.

But it did have a precipitous drop off when both Google and Apple removed it from their respective stores.
"Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times." - Those Who Remain by G. Michael Hopf
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31.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 13, 2021, 13:44
Kxmode
 
31.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 13, 2021, 13:44
Apr 13, 2021, 13:44
 Kxmode
 
Jonjonz wrote on Apr 11, 2021, 06:49:
Henry Ford was a despicable racist, anti-labor, nazi ass-kisser and war profiteer, but that does not change the fact that so many Ford cars are classics and highly desirable. The fact that Sweeny is a jerk, does not make Grand Theft Auto V undesirable.

Once again, Godwin's Law prevails.
"Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times." - Those Who Remain by G. Michael Hopf
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30.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 13, 2021, 12:53
Verno
 
30.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 13, 2021, 12:53
Apr 13, 2021, 12:53
 Verno
 
I think WoW could potentially outlive me. And I'm OK with that
Playing: Xenoblade Chronicles DE, Ys IX, God of War
Watching: Lupin, You me and the Apocalypse, Days of Thunder
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29.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 11, 2021, 21:40
29.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 11, 2021, 21:40
Apr 11, 2021, 21:40
 
Cutter wrote on Apr 11, 2021, 11:34:
Fornite revenue has been on the decline for the last several years. It's like WoW. I doubt there will be a precipitous drop off anytime soon but it'll definitely keep shrinking as the newest latest greatest things continue to arrive. Nothing lasts forever.

Except WoW
Avatar 17249
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removed
Apr 11, 2021, 17:03
28.
removed Apr 11, 2021, 17:03
Apr 11, 2021, 17:03
 
* REMOVED *

This comment was deleted on Apr 11, 2021, 17:13. Reason: Personal attacks (rule 1)
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27.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 11, 2021, 11:34
27.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 11, 2021, 11:34
Apr 11, 2021, 11:34
 
Fornite revenue has been on the decline for the last several years. It's like WoW. I doubt there will be a precipitous drop off anytime soon but it'll definitely keep shrinking as the newest latest greatest things continue to arrive. Nothing lasts forever.

"You have enemies? Good. That means you’ve stood up for something, sometime in your life."
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26.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 11, 2021, 06:49
26.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 11, 2021, 06:49
Apr 11, 2021, 06:49
 
I have about 50 games in my Epic Library, 15 which I purchased at sale prices at various times.

There is not a woofer in the bunch which is more than I can say for my Steam library.

Henry Ford was a despicable racist, anti-labor, nazi ass-kisser and war profiteer, but that does not change the fact that so many Ford cars are classics and highly desirable. The fact that Sweeny is a jerk, does not make Grand Theft Auto V undesirable.
"Meet the new Boss, same as the old Boss." - The Who.
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25.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 11, 2021, 03:41
25.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 11, 2021, 03:41
Apr 11, 2021, 03:41
 
So this is Apple saying that %15 - %30 take is justified because, unlike Epic, they don't want to take a loss on 3rd party apps. It's just operating costs.
24.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 11, 2021, 01:01
24.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 11, 2021, 01:01
Apr 11, 2021, 01:01
 
"If it bleeds, we can kill it".
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23.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 11, 2021, 00:44
Jim
23.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 11, 2021, 00:44
Apr 11, 2021, 00:44
Jim
 
WaltC wrote on Apr 10, 2021, 18:32:
I bought RDR2 direct from Rockstar games when it was first released, IIRC.

while some developers can do that (rockstar owns the accounts and download service), others get hit with fraud, where the keys get sold on an auction site, chargebacks hit their account for the cost of the game and chargeback fees, and then angry customers call and complain why their key (from auction site) no longer works. to the point where some companies have begged people to pirate their games and not use auction sites.
22.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 11, 2021, 00:39
Jim
22.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 11, 2021, 00:39
Apr 11, 2021, 00:39
Jim
 
The golden goose is going to run out of eggs. epic realized this, and so they have built a cash printing machine like steam has. steam makes so much money off of selling other games they can barely be bothered to waste time making their own. like half-life:alyx. this game was produced to sell half-life, it was created to get more people on VR and expand that market.
21.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 11, 2021, 00:37
21.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 11, 2021, 00:37
Apr 11, 2021, 00:37
 
WaltC wrote on Apr 10, 2021, 18:32:
I bought RDR2 direct from Rockstar games when it was first released, IIRC.
That's actually the best way to support the devs. I usually do that with games from Amanita Design and Subset Games, for example.
'I am' is reportedly the shortest sentence in the English language. Could it be that 'I do' is the longest sentence? - GC
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20.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 10, 2021, 23:29
20.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 10, 2021, 23:29
Apr 10, 2021, 23:29
 
No one should be surprised, they don't have to pay taxes when they give away profits of fart'nInTheNight.
Never visited their site, except when RedEye9 tricks me with links to HotYoungBabes!

Sure the hell never made an account, installed software or took any games from them. Flamethrower
‘What is this bullshit that you people are doing?’
The worst criminal in human history, undeniably.
Beating and Gassing Americans for Jesus!
Ain't no tweetin, in jail jammies!
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19.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 10, 2021, 22:47
Verno
 
19.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 10, 2021, 22:47
Apr 10, 2021, 22:47
 Verno
 
Avus wrote on Apr 10, 2021, 22:07:
EGS lost $$ in millions, Fortnite made $$ in BILLIONS, it is still a great business model.

Fornite was down from $2.4b to just over $1b. Their fight with Google and Apple on the mobile side has been costly to say the least and Fortnite's streaming metrics are not all time low but seem to be on the decline.

The Epic Games Store itself has nothing tying users to it due to lack of features. They throw some free games out, people redeem them but don't really stick around. DLC sales are exceptionally poor on the platform with many devs delaying DLC launches until the Epic exclusivity ends to get a good bounce from Steam. The client needs a much faster dev cycle and they need to build out the API significantly. Firehosing money around has been fun but if they want to be a serious platform they need to compete on features. They had a chance to buy Discord but it looks like Microsoft might be closing that deal soon instead. Shame, would've put them ahead or on par with Steam in several aspects.
Playing: Xenoblade Chronicles DE, Ys IX, God of War
Watching: Lupin, You me and the Apocalypse, Days of Thunder
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18.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 10, 2021, 22:42
18.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 10, 2021, 22:42
Apr 10, 2021, 22:42
 
Does this mean EGS is actually a Ponzi Scheme?
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17.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 10, 2021, 22:07
17.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 10, 2021, 22:07
Apr 10, 2021, 22:07
 
EGS lost $$ in millions, Fortnite made $$ in BILLIONS, it is still a great business model.
“I am not a Mac user unless under duress.” - John Carmack
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16.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 10, 2021, 19:10
16.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 10, 2021, 19:10
Apr 10, 2021, 19:10
 
Wait.. I missed something... 144 MILLION in advances to companies for the exclusives that they haven't gotten back? So is this pretty much saying that being a EGS exclusive isn't paying off for devs as well?
Avatar 12670
15.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 10, 2021, 19:01
15.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 10, 2021, 19:01
Apr 10, 2021, 19:01
 
That's mainly what I do. However, I do have the app installed because I love love love tinkering with the Unreal Editor. It really is a great tool. And fun to mess around with.
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14.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 10, 2021, 18:59
14.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 10, 2021, 18:59
Apr 10, 2021, 18:59
 
I refuse to use it, this Tim Sweeney guy is a prick
13.
 
Re: Epic Spending Hundreds of Millions on Game Store: Reports
Apr 10, 2021, 18:32
13.
Re: Epic Spending Hundreds of Millions on Game Store: Reports Apr 10, 2021, 18:32
Apr 10, 2021, 18:32
 
I bought RDR2 direct from Rockstar games when it was first released, IIRC.
It is well known that I don't make mistakes--so, if you should happen across an error in something I have written, you can be confident in the fact that *I* did not write it.
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