Of all the online storefronts that have tried to take on the Steam giant, the Epic Games Store is by far the closest competitor. Whether you like it or not, Epic has spent a huge amount of money to increase their market share, and thanks to the ongoing Apple vs. Epic court case, we now know some specific numbers.
For instance, Epic lost around $181 million in 2019, and around $273 million in 2020 on exclusivity deals and free games. With a projected loss of $139 million by the end of 2021, that adds up to an astounding $600 million lost since the store opened at the end of 2018. But whilst we (and Apple) may see that as losses, Epic considers them as investments.
“EGS is not yet profitable at its current scale and stage of development because it has front-loaded its marketing and user acquisition costs to gain market share,” said Epic CEO Tim Sweeney in the filing.
Epic thinks they will recoup costs by 2023, but more realistically may have to wait until 2027 before it actually starts turning a profit. In fact, Epic says that their 12% revenue cut will eventually be able to sustain the store’s costs in the future.
And if this legal battle between Apple and Epic is sorted anytime soon, Epic will be able to recoup costs from their Fortnite in-app purchases, which Epic has reportedly made $700 million from in iOS transactions alone.
It’s very clear that whilst Epic is spending millions to make their store more popular and get more users onto the storefront, they certainly have the money to spend. And it’s interesting to now be able to see the actual numbers thanks to the legal fight between them and Apple.
What do you think? Will the Epic Games Store eventually become a profitable storefront? Have you spent any money on the store since it launched? Let us know!