RELATED: Epic Games Store is Adding New Social Features This process involved Epic Games spending a lot of money to secure the titles, but it seemed to be working for them up based on the number of players that model attracted. Yet recent documentation appears to have debunked this, as it looks like the Epic Games Store is not actually doing so well, and Epic Games’ CEO has weighed in on the matter.
According to a recent court filing, the Epic Game Store has lost hundreds of millions for Epic Games. Despite many accounts registered and the large amount of revenue brought in, the storefront is apparently losing even more money than it is making. Tim Sweeney, CEO of Epic Games, has given his two cents on this revelation via Twitter, reframing the past and projected revenue loss as an investment. According to Sweeney, the amount lost by the Store will create a foundation for its successful future. With so much money pouring in, it makes sense Sweeney would be confident about the store’s future. According to his tweet, Sweeney views the loss as Apple “spin,” again owing to the legal battle between Epic and Apple. According to Sweeney, it’s a battle made possible by Epic’s independence.
While the accuracy of the revenue loss being part of Epic Games’ investment in its virtual storefront is debatable, it does make sense that this would be Sweeney’s mindset. He has positioned his company for independence on multiple fronts, and many of those fronts are working. Epic Games makes considerable revenue from Fortnite and the licensing of its Unreal Engine, and is currently in a legal battle with Apple to be freed from the constraints of the App Store. It has used its revenue to purchase game exclusivity for the Epic Games Store before, and to purchase up and comers like Fall Guys developer Mediatonic. On the other hand, Epic’s approach to its storefront has come under fire in the past. Part of this was because its only major asset when compared to Steam, the most prominent online video game storefront, was exclusive content. Epic using its wealth to create competition this way has been called “artificial” by some, in that the quality of the storefront barely comes into play. Further, Sweeney is very invested in the struggle with Apple, even comparing it to the Civil Rights movement. If he is that focused, there’s a possibility it could blind him to problems with the Epic Games Store.
— Tim Sweeney (@TimSweeneyEpic) April 10, 2021 Apple spins this as “losing money”, but spending now in order to build a great, profitable business in the future is exactly what investment is! It’s equally true whether you’re building a factory, a store, or a game.
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