Epic Games Store: Revenue is down, hundreds of millions lost

As you well know, epic Games has been involved in a lawsuit against Apple, which he decided to remove Fortnite from the App Store because the Cary-based company implemented a new system in its Battle Royale that allowed iOS users to make in-app purchases using their payment system, thereby bypassing the store's in-app purchase system from Apple. According to what emerged from documents filed in court, the revenue of the Epic Games Store would be in continuous decline from 2019.

Although the store has over 160 million registered accounts and more than 56 million active users every month, the situation is not entirely rosy, as many might expect. Although theEGS has generated nearly $ 1 billion in revenue in recent years (more than a quarter from in-app purchases), the latter would be going through a pretty tough period, with pretty big losses.

Since its launch in December 2018, Epic would have lost more than $ 450 million with its own digital store and it would appear that the financial situation will not improve in the coming months. In fact, according to what emerged from some data, the company's deficit could increase to over half a billion dollars by the end of 2021. According to the report, the Epic Games Store would have cost the software house about 181 million dollars in 2019, 273 million dollars in 2020 and is currently expected to lose another 139 million dollars in 2021.

These losses are largely the result of the company's strategy of anticipating user acquisition costs so that it can increase its market share. These include expensive initiatives such as EGS exclusive offers, as well as the numerous free games available to store users. Despite the huge losses, Epic is quite confident that the situation can improve in the coming years, in fact the store is expected to start generating profits starting in 2023.