The ongoing legal battle between Epic and Apple has been taking several twists and turns. In a turn of events, Apple’s lawyers, in their defense have stated that the Epic Games Store have incurred several losses with no hopes of collecting on them until 2027. It all started when Epic sued Apple for its practices in the iOS App Store. Epic also filed another lawsuit against Google on the same day bringing similar cases against its practices in the Google Play Store.
Several documents had been revealed by both parties with Apple repeatedly highlighting the losses that Epic incurred with the EGS venture. In their defense statement, Apple’s lawyers state that “Epic Games Store is unprofitable and must not be compared to the App Store”. They further go on to break down the losses that Epic incurred from this venture of theirs. The company incurred a $181 loss in 2019 and projected an approximate loss of $273 million for 2020 from the EGS Venture. The company further projected a loss of about $131million in 2021.
Taking into account the figures the company invested a minimum of $493 in this venture. In its statement said that “Epic does not have expectations that the EGS will return gross cumulative profits before 2027”. The figures mentioned, however, have to be taken into account after considering what Epic is set on achieving with its Epic Games Store venture. Considering the fact that Epic’s other ventures return enormous profits, it is perfectly capable of easily tiding over these loses, quite easily.
Here is a breakdown of the Epic vs. Apple Lawsuit
A part of the lawsuit that Epic filed against Apple is that they want Apple to host Epic Games Store on iOS. Epic keeps bringing up the point that their commission on the store is 12%. However, Apple countered that its App Store is very different from the EGS and points that Epic’s claim for exclusionary conduct cannot be implemented since the App Store was not designed for hosting any other platform.
While Epic seems to have to face the heat in the courtroom, it cannot be denied that a significant part of the losses incurred has been because of the free games that the EGS keeps giving away, on a weekly basis. While the company can very well afford the losses, it remains to be seen who emerges victorious in this battle between Epic and Apple.