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Here"s how much money Epic is burning to lớn make the Epic Games Store a Steam competitor.Bạn vẫn xem: Teaching about social justice issues in physical education


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To take on Steam, Epic Games has spent the past two years shoveling Fortnite money into the Epic Games Store, making over 100 exclusivity deals and giving away không tính tiền games every week. We knew Epic was spending a lot of cash to get customers onto its store, but didn"t have many specifics until now. Thanks to Epic"s big legal fight with Apple, we learned this week that Epic committed around $444 million to Epic game Store exclusivity giao dịch in 2020 alone. Phew.Bạn vẫn xem: Sue di tam bien

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 lớn refer to an advance: It means that Epic guarantees the quảng cáo trên internet 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.

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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 lớn third-party devs isn"t close khổng lồ being recouped, then. Some of those deals must be for exclusives releasing in the future, but according lớn Apple"s learnings, Epic is going khổng lồ eat "at least $330 million in unrecouped costs from minimum guarantees alone" if you also consider 2019"s deals.

As for how much the Epic Games Store will have lost in total by the kết thúc of 2021, factoring in exclusives and all other expenses, projections say it"s less than $600 million. Just a bit of spending money, then.

Citing depositions from Epic Games Store VP and GM Steve Allison and Epic VP of business development Joe Kreiner, apple says that Epic lost $181 million on the Epic Games Store in 2019, projected a loss of $273 million last year, và projects another loss of $139 million this year. Added up, that"s an estimated $600 million that the Epic Games Store will need lớn recoup before it"ll be profitable on the whole. Táo bị cắn dở points out that Epic doesn"t think that"ll happen until 2027.

In its new filing (PDF here), Epic puts a happier face on its business plan, saying that it expects the Epic Games Store khổng lồ start earning annual profits in 2023. And what táo bị cắn dở calls "losing money," Epic would probably gọi "investing money." This spending is all part of the plan, says Epic, và its 12 percent revenue cut will eventually be enough to lớn sustain the store, something it has been saying since it launched the store at the kết thúc of 2018.

Other fun things Epic & Apple have to say about each other

Epic called its plan khổng lồ go after Apple and Google "Project Liberty."

Epic has even bigger plans than bypassing Apple"s fee in Fortnite, though. It wants to lớn put the Epic Games Store on iPhones and sell di động games with its own payment system, competing with the ứng dụng Store itself, and hopes US courts will rule that it would be anti-competitive for táo bị cắn to stop it.

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Epic argues that game ios developers can"t innovate & provide the safety features they want to lớn due to Apple"s overbearing policies, và Apple brings up the Epic Games Store"s unprofitability in part to lớn attack the idea that Epic actually does those things in the first place. "By its own admission, the Epic Games Store—two years after it launched—is still missing "critical" features," writes Apple"s lawyers (echoing large parts of Reddit).

In a mostly-redacted section, apple calls out "significant security breaches involving EGS," possibly referring lớn a 2019 Fortnite breach. It also says that Epic"s customer tư vấn team is inferior to lớn Apple"s, citing an internal email sent by Sweeney in which he asks "what happened with the community team" that was supposed lớn offer customer service khổng lồ people complaining online. "I"ve seen nothing," wrote Sweeney. "Literally zero, while we"re being endlessly bombarded with claims of problems that Epic isn"t answering."

During the trial, it may also come up that Epic doesn"t force developers khổng lồ use its payment processing for in-game purchases on its store. That"s true in Ubisoft games on the Epic Games Store, for instance, which have their own in-game transaction system. Táo bị cắn doesn"t want the court khổng lồ think that the app Store & Epic Games Store are comparable, saying that in-app purchases are part of the ios platform, not just some store feature, và that the first iPhone didn"t even allow third-party apps (read: you should be thanking us!).

What Epic wants, in brief. (Image credit: Epic Games)

Across the document, táo khuyết more or less says: Epic, your store is a bonfire that you chuck money into, all the gamers are mad at you, and if we"d let you run wild, you would"ve caused security breaches on our phones. You needed our ứng dụng Store lớn earn $700 million in Fortnite revenue on iOS, you ungrateful nerds!

I doubt comparisons between the Epic Games Store và App Store will be a big part of the case, in the end. Epic"s issue with táo apple isn"t just that it runs a store with mandatory fees. Epic"s complaint is that táo khuyết also makes that store & its in-app purchase system unavoidable on a huge portion of the smartphones in the world. That"s what makes it an antitrust issue, in Epic"s view.

Part of Apple"s rebuttal is that Microsoft and Sony bởi the same thing with the Xbox & PlayStation. Epic says, no, that"s not the same, because game consoles "do not include general computing features like smartphones," aren"t very portable, và don"t connect khổng lồ cellular networks. "Smartphones are critical platforms for developers," says Epic, và since so many of them are iPhones, developers have no choice but khổng lồ submit to lớn Apple"s rules.Apple says that"s not true, because "consumers can và do switch away from tiện ích ios devices to android devices," và lots of people play Fortnite on multiple platforms, so actually it is competitive.

The companies raise many more points và counterpoints in these recent filings, which comprise about 500 pages together. For instance, táo says, as it has before, that Epic tried to lớn negotiate a side khuyễn mãi giảm giá with it, implying that Epic"s open platform evangelism is actually self-serving. Epic, meanwhile, accuses apple of burying competitor"s apps in the ứng dụng Store search.

Against my expectations, Apple"s is the more aggressive of the two documents, making it the more interesting. Here are a few more tidbits from Apple"s interpretation of the evidence:

Fortnite"s average monthly users declined between 2018 & 2019, & Epic noticed when #RIPFortnite trended on Twitter. (See? Developers vì chưng hear you. & then they develop elaborate plans khổng lồ sue Apple.)Epic believed Fortnite could be reinvigorated by turning it into a platform for creators, but felt that platform fees, like the app Store fee, might hinder the plan.Epic called its plan to go after Apple and Google "Project Liberty." Sweeney was "in the loop" on it "100 percent." (I mean, obviously, he tweets about it all the time.)100-200 Epic employees were involved with "Project Liberty."Epic knew the public wouldn"t necessarily sympathize with it when it defied Apple"s rules, và was concerned about looking lượt thích "the baddies." It paid a quảng bá firm $300,000 khổng lồ work on Project Liberty.Epic has made more than $700 million just through Fortnite ios transactions. (Which is one reason its Epic Games Store losses are no big deal.)

This article was updated on April 10, 2021 to địa chỉ cửa hàng more details about the filings and case.

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