Epic will at least lose 330 million dollars due to all the exclusives and free games made available on theEpic Games Store: despite this, the CEO of Epic Tim Sweeney revealed to his Twitter fans that he considers it a good investment and appears to be surprisingly excited about the losses that include hundreds of millions of dollars. Some of this money went to a series of "minimum guarantees" for publishers and developers, and with revenue declining, it seems that the situation is not really the best.
If we refer to Epic's 2020 year-end report, we find that players spent a whopping 700 million dollars on the Epic Games Store in 2020; however, third-party games, the ones that Epic did business for, only accounted for 265 million of that large figure. Apple thinks that by including expensive exclusives, free games and all other expenses, the store will cost the developer Fortnite approximately $ 600 million by the end of this year and - again following assumptions - the store will not become profitable until the arrival of the 2027.
In response to the reporting of IGN on the huge losses of the Epic Games Store, Tim Sweeney didn't seem sad at all, in fact, he was even excited about all the money Epic was losing: “That's right! The investment proved to be a fantastic success in reaching players with great games and a fantastic investment in growing the business! ”. The man also tweeted an old infographic which however does not include how much money the company was losing on the store.
Epic's lawyers explained that all of this would be part of a 'ingenious strategy, and that it is just a big investment to rapidly grow the store and the general user. Epic also says that even with the revenue cut by 12%, the store will start making a profit in 2023.
That's right! And it has proven to be a fantastic success in reaching gamers with great games and a fantastic investment into growing the business! https://t.co/MN8OjM5FEP pic.twitter.com/Yl0LmCZjKB
- Tim Sweeney (@TimSweeneyEpic) April 10, 2021
