A story yesterday on
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
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
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.