Epic Games lost hundreds of millions of dollars on EGS – the store will not start making profits until 2023

From the new court materials prepared in the case Epic Games vs Apple, revealed some interesting facts about Epic Games Store…

The store was launched almost 2.5 years ago, making free giveaways and the release of exclusives the main mechanism for attracting an audience. It is reasonable to assume that the company spent a substantial bag of money earned from Fortnite and Unreal Engine, and published documents confirm this.

According to the information specified in them, while the Epic Games Store does not make a profit… For 2019 and 2023, the store cost the company about 181 and 273 million dollars losses, respectively, and the forecasted losses for the current year should be about $ 139 million… Epic Games expects to be profitable only by 2023…

To date, EGS has published over 400 games from two hundred developers, to whom Epic Games has paid out more than $ 700 million in revenue to date. At the same time, the reduced sales tax (12%), according to Epic Games, is more than enough to make the store profitable in the long term.

The company also spent a fair amount of money on exclusives. No less $ 330 million Epic Games gave developers free of charge as a guarantee, no matter how well their titles sell.… In the short term, the company runs the risk of losing money on this and may never return the investment unless the games ultimately pay off the cost of paying for exclusivity.

Either way, Epic Games is definitely playing a long game here. If the store maintains its current course, it can be a very attractive place for developers, especially when it reaches profitability and is therefore less likely to close.

Read also: Paramount Rescheduled Tom Cruise Films and Announced Next “Start Trek” – New Studio Premiere Schedule…

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