The developers of Fortnite, Epic Games, has managed to contend in the PC gaming market with its Epic Games Store, even though the online marketplace is unlikely to turn a profit until 2024 – according to Epic's CEO Tim Sweeney. Over the past month, it’s become more evident to the industry just how much money Epic Games loses through Epic Games Store. Most of these losses are from the exclusivity deals and free games offered to developers and gamers, respectively.
It's difficult to get too distracted by the millions spent on Epic Games Store when taking into account the billions gained through Fortnite. The popular Battle Royale version of the game that was released in 2017 has had a firm grasp on the gaming community ever since its introduction. The game is known for putting a more colorful spin on PlayerUnknown’s Battlegrounds, another Battle Royale phenomenon. Before being a free Battle Royale game, Fortnite was a bumbling zombie-survival game that did little to attract a solid player base. It’s now turning Epic Games into competitors with some of the biggest gaming companies around.
Epic Games has been particularly interested in competing with Steam, which is currently the largest, most popular PC game marketplace, via the Epic Games Store. However, Epic doesn’t expect its storefront to turn a profit for at least another three or four years according to a newly-public strategy review (as reported on by GamesIndustry.biz). This information became available through the legal battle Epic Games is currently locked in with Apple, the trial of which began on Monday. Tim Sweeney also confirmed this in person at the trial, stating that the Epic Games Store is “hundreds of millions of dollars short of being profitable.”
The report also details the huge deal Epic Games made with 2K Games in 2019. The deal cost roughly $146 million, making the PC versions of Borderlands 3 exclusive to Epic Games for its first six months on the market. The deal also included the addition of Borderlands: The Handsome Jack Collection and Civilization 6 to Epic Games Store. From here, the strategy review breaks down the upcoming years and the potential losses and gains the company can expect from Epic Games Store. The report comes from October 2019, so it doesn’t have information on the most recent year in which gaming amongst the general population skyrocketed, but according to Sweeney, Epic Games is still on track with the report. This plan includes losing millions of dollars over the next few years to bolster Epic Games Store.
The Epic Games vs. Apple case has revealed a plethora of important information about Epic. Fans even got a sneak peek at some characters coming to Fortnite soon. The case has been a topic of discussion for well over half a year now, and after the start of the trial on Monday, it seems things are just getting started. Some of the information even spills over into other games, such as the aforementioned Borderlands 3. More will likely keep coming, as before the trial, Epic Games acquired data and other details regarding more than 400 Steam games. Still, the most interesting aspect of the trial is who will come out on top. Epic Games is taking on one of the most powerful companies on the planet, and they’re coming out swinging.
Sources: GamesIndustry.biz, Epic Games