Epic Games Looses Around $300 Million to Gain Market Share - HEader

Epic Games Looses Around $300 Million to Gain Market Share

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In an ongoing legal fight between Apple and Epic Games, sources have learned that Epic Game Store spent around $444 Million for Epic Games Stores’ exclusive deals in 2020. Since the launch of Epic Games Store, they have been consistent with providing users with a free game each week. With over 100 exclusive deals, free games every week, is set to gain market share against it’s rival, Steam. 

However, Apple’s learnings states that Epic will have at least $330 million in unrecouped costs from minimum guarantees alone” considering 2019’s deals. This legal battle summaries are of an argument again Epic’s anti-trust complaint and it all started when Epic implemented a payment system that would bypass Apples’ 30% cut in Apple App Store. This lead to Apple banning Fortnite and then protesting to bring it back. (#FreeFortnite)

Epic confirmed via it’s 2020 yearly report that players have spent $700 million in Epic Games Store. And Apple’s lawyers projects that Epic Games Store will lose around $600 million by the end of 2021. Meanwhile, Epic claims that they are investing money to gain market share against Steam.

Epic Games Looses Around $300 Million
to Gain Market Share

Epic Games Looses Around $300 Million to Gain Market Share - 1

Apple said: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.”

CEO, Tim Sweeny said:
“EGS is not yet profitable at its current scale and stage of development because it has front-loaded its marketing and user acquisition costs to gain market share,”

Epic and Apple are set to go to court on May 3rd 2021.

Source: PC Gamer

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