Epic Games is losing about 30 billion yen to compete with Steam



Popular fighting game ' Fortnight Epic Games to develop' is the App Store app distribution platform has been collected too hefty fees as being in violation of antitrust law, it has developed the Apple and the court battle I will. Epic Games is expected to lose $ 273 million to compete with competing game distribution platform Steam, court documents said.

21-04-07 Apple Proposed Findings of Fact and Conclusions of Law | App Store (I Os) | Ios
https://www.scribd.com/document/502037049/21-04-07-Apple-Proposed-Findings-of-Fact-and-Conclusions-of-Law


Epic is losing hundreds of millions of dollars in its war against Steam • Eurogamer.net
https://www.eurogamer.net/articles/2021-04-10-epic-is-burning-hundreds-of-millions-of-dollars-on-epic-games-store-exclusives-in-its-war- against-steam

Epic Games has claimed that '30% of Steam's sales commission is exorbitant' and has exclusively sold many game titles in its own Epic Games Store to compete with Steam.

For example, Shenmue 3 , which was released in 2019 with a solicitation of investment from Kickstarter, was originally scheduled to be released on Steam, but suddenly there was a turmoil that a limited-time exclusive distribution was announced at the Epic Games store.

Steam users' dissatisfaction exploded as 'Shenmue 3' became exclusive to the Epic Games store, and finally it was decided to respond to refund of investment --GIGAZINE



Ubisoft's popular third-person shooter, Division 2, has also been discontinued on Steam and is now exclusively available on the Epic Games Store.

Competition between Steam and Epic Games Store intensifies due to PC game sales, 'The Division 2' will be distributed at Epic Games Store instead of Steam --GIGAZINE



While users have often complained about these exclusive sales strategies, Epic Games CEO Tim Sweeney said, 'The only strategy to permanently impact the gaming industry and break through the status quo is monopoly. I believe. '



In addition, Epic Games regularly runs free game distribution campaigns as a strategy to compete with Steam. In addition to indie games, AAA- class titles are often distributed free of charge.

'We will continue the campaign to distribute free weekly games for 2020,' Epic Games announces --GIGAZINE



However, Apple's court filings show that the Epic Games Store is unprofitable, as 'testimony by Epic Games executives.'

According to sources, the Epic Games Store lost $ 181 million in 2019 and about $ 273 million in 2020. It is expected to be out.

Epic Games is a minimum for each game publisher to pursue the strategy of 'exclusively distributing featured game titles on the Epic Games Store for a limited time and selling them on other platforms such as Steam six months to a year after the release date.' You need to pay a deposit. For example, Epic Games reportedly spent $ 1.05 million on exclusive sales rights to the action-adventure game Control .

According to Eurogamer, an overseas gaming media, Epic Games has admitted that the Epic Games store is unprofitable and expects to lose about $ 139 million in 2021. It is said that there is. In addition, the minimum deposit for exclusive sales alone has generated uncollected costs of $ 330 million, and I think the Epic Games Store is quite difficult to manage.

Sales commissions on the Epic Games Store are set at 12%, which is less than half that of the App Store and Steam. However, Apple is thought to appeal in court that 'the operation of the game distribution platform is economically difficult with a fee of 12%'. In addition, Apple announced the view that 'from 2018 to 2019, Fortnite's average monthly active users and revenue are declining.'

In response, Epic games repeatedly insisted that 'a fee of 12% is enough to operate the Epic Games store satisfactorily, such as payment processing, customer service, bandwidth, etc.', denying Apple's point. .. The details of both claims will be revealed at a trial scheduled for May.

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