Epic Games Store has been losing money for the past two years

It seems that Epic Games has suffered from its investments in EGS to compete with Steam while its lawsuit with Apple continues.

Epic Games invested the money it earned through Fortnite in the Epic Games Store to get closer to Steam and then to prevent it. He was not satisfied with that either; It distributed free games / games every week by making more than 100 exclusive deals.

You may be interested in: Epic Games 2020 statistics, 103 free games!

We knew that Epic Games was spending a lot of money to attract players – or customers – to its store. However, we have not had much detailed information until now. PC Gamer reports Epic Games’ massive legal struggle with World Brand Apple has allowed us to see a lot of things. It was learned that Epic Games had committed over $ 400 million for the privileged deals it made in 2020 alone.

Epic Games Store

To be more precise, the “minimum warranties” for games released on the Epic Games Store (provided that they remain out of Steam for a year) exceed $ 444 million. The term “minimum warranty” can be explained as follows: Epic Games guarantees the publisher a certain amount of money regardless of how much the games it sells are sold or not. For example Epic Games; In the first place for Control, he paid over $ 10 million in advance, regardless of how much it was sold or not.

Epic Games Store year-end report

Published by Epic Games in the link The year-end report says that players spent $ 700 million for the Epic Games Store in 2020, of which $ 265 million was third-party games. Over $ 444 million in advance provided to third-party developers is unfortunately not close to being compensated.

One more detail: Some of the agreements Epic Games has made for the Epic Games Store may not yet be in effect. So there are games in the background that haven’t “started making money” yet. Epic Games will set aside $ 330 million as “unrecoverable costs,” according to Apple.

If we take into account all the expenses made, the Epic Game Store will suffer a total loss of less than $ 600 million by the end of 2021. Of course, this is an estimated number.

So why did Epic Games and Apple go to court? You can visit the link below for the details of the fight.

You may be interested: Epic Games vs Apple case pending in court

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