Recently submitted documents have revealed that the Epic Games Store’s exclusivity deal for Borderlands 3 cost the company a whopping $115 million. The documents were revealed as part of the ongoing legal dispute between Epic Games and Apple over the removal of Fortnite from the iOS App Store.
Fortnite was removed from the App Store in August 2020 due to Epic’s introduction of a separate payment method for Fortnite’s microtransactions, which would have circumvented Apple’s 30% cut of all app revenue. While Apple offered to restore Fortnite onto the iOS App Store as long as it received 30% of all microtransactions from the game, Epic Games decided to take the case to court, arguing that Apple had an unfair monopoly on the distribution of iOS Apps. As a result of the ongoing legal battles, many companies like Nintendo, Microsoft, and Valve have been subpoenaed to submit documents revealing data previously private to the public.
As reported by PC Gamer, in a series of documents as part of its ongoing legal battle, Epic Games has revealed that the cost of Borderlands 3’s six-month PC exclusivity on the Epic Games Store totaled $115 million. The information revealed was part of Epic’s “Review of Performance and Strategy” report in October 2019. The document showed that of the $115 million, $15 million was allocated to marketing, $20 million were non-recoupable fees, and the remaining $80 million was paid as an advance to publisher 2K Games ahead of the game’s release. Despite the big price tag of the exclusivity deal, Epic managed to recoup $100 million from sales of Borderlands 3 merely two weeks after release.
Interestingly, the documents also reveal that the exclusivity of Borderlands 3 resulted in an influx of new users to the Epic Games Store, with 53% of the 1.56 million Borderlands 3 players being new customers to the Epic platform. Besides that, Epic also paid $31 million to 2K in order to provide Borderlands: The Handsome Collection (containing Borderlands 2 and Borderlands: The Pre-Sequel,) and Civilization 6 as part of their free games giveaway. Of course, it should also be noted that while there were good results from its exclusivity tactic with Borderlands 3, the Epic Games Store is still spending much more than it currently earns, with the company stating it expects the Epic Games Store to remain unprofitable until 2024.
Epic’s documents have revealed that while the company is taking out its wallet big time for exclusives and giveaways, it’s a strategy that seems to be working; new users (and their money) are indeed flocking to the store. As the company continues its legal battle with Apple, it will be interesting to see what documents will surface next, as it gives the world a glimpse into the inner workings of the biggest players in the industry.
Borderlands 3 is available on PS5, PS4, Xbox Series X/S. Xbox One, PC, and Google Stadia.
Source: PC Gamer