As the battle between Apple and Epic Games rages on, we’re starting to find some interesting details about the business model of both companies’ online storefronts. In a recent court filing by Apple against Epic Games, it has been revealed that the latter lost close to $450 million on Epic Games Store (EGS) in the last two years.
You can access the entire filing here, and also read Epic’s response against Apple regarding their investments and profits, but here’s the gist:
- Epic lost around $181 million on EGS in 2019
- Epic projected to lose around $273 million on EGS in 2020.
- Epic committed $444 million in minimum guarantees for 2020 alone
- Epic projects to lose around $139 million in 2021
In return, Epic also revealed its investments and projected earnings through Epic Games Store, stating that they expect the storefront to turn a profit by 2023, as reported by DSOGaming.
The Apple-Epic lawsuit is quickly approaching trial in May, and as both companies prepare to get on the battlegrounds, more information about both storefronts is bound to become public information.
It’s not a surprise to see the projected losses on EGS’ part, considering how much the company has been investing to expand its user base by giving away big games (like GTA V) frequently. We’ve also seen the company bag well-known IP as exclusives for its storefront, which also would require a large investment.
Recent developments show that Epic might be planning to go public soon, so that could provide a way to subsidize these investments. Even if you’re not a fan of Epic Games Store, the company has been making the right moves to gain new users, despite lacking basic features available on rival PC storefront Steam.
The Apple-Epic legal battle is set to take place in May, with more information potentially coming in the following weeks.