The strategy of giving away games every week in Epic Games Store And getting exclusive games for its platform is assuming millionaire losses for the company. The middle PC Gamer discovered this information based on estimates by Apple, used as proof in its litigation against Epic Games to show that the company is unprofitable.
In total, Epic would have spent $ 444 million in guarantees for publishers whose games were offered for free in their store. In this way, publishers would earn a set amount for bringing their games to the Epic store, regardless of sales, which It gave many of them a security that they would not get on platforms like Steam, where it is possible that they would have losses if their sales did not take off (unless they are lucky enough to be Valheim).
This generosity, together with the purchase of exclusives on PC such as the Kingdom Hearts saga, NEO The World End With You or Total War Saga Troy, company losses of up to $ 600 million, according to Apple.
But for Tim Sweeney, CEO of Epic Games, this is all part of the plan. In a tweet mentioning the news, he says that “it’s real, and it’s turned out to be a fantastic success in bringing great games to gamers, and a fantastic investment in the future of the business“.
– Tim Sweeney (@TimSweeneyEpic) April 10, 2021
“Apple brandishes this as ‘losing money,’ but spending today to build a good, profitable business in the future is exactly what it means to invest. It’s just as true when you’re trying to build a factory, shop, or game.”, Sweeney concludes.
According to Epic attorneys in another document, his estimate is to start making profits from 2023. The Epic Games store already has 160 million users, and about 60 monthly active users, approximately half the users of Steam, but achieved in much less time. The aggressive strategy of offering a couple of free games every Thursday has helped bring many users to an ecosystem traditionally controlled by Valve.
To all this, we must remember that Epic Games also has two other big businesses, Fortnite and Unreal Engine., which could offer the cushion to spend indiscriminately at EGS with free games and exclusivity agreements with third parties to continue attracting Epic Games users … But for how long?