The Giants’ legal battle began on Monday. Publisher’s lawsuit Fortnite three years later she reached the court, which must decide whether Google Play store constitutes an illegal monopoly on Android devices. In 2021, Apple went through the same process where Epic Games was also sued.
Epic Games COO testified during trial yesterday Steve Ellison. We learned from him that The Epic Games Store is not profitable. The platform has not yet reached the number of users and sales volume to be profitable.
It was originally planned that the store would begin to make a profit this year. The previous legal battle with Apple involved a loss of more than $300 million. Epic CEO Tim Sweeney called it part of a fantastic plan that has helped grow the business.
The company launched its video game business in December 2018. The business is focused solely on growth, Ellison said. Because Epic is investing in free-to-play games as an advertising strategyand also tries to lure developers and publishers with more favorable conditions.
Thanks to Valve’s traditional 30% stake in Steam, the Epic Games Store was launched. Founder Tim Sweeney declared a de facto war on Steam, offering game creators a more generous share of revenue than Steam, taking just 12%. New, if the conditions are met, Epic will give 100% of the profits to publishers for six months. This is in exchange for exclusivity.
Ellison told the court that after the launch of the Epic Games Store, competitors responded by giving developers more money. He mentioned that the standard is no longer 30% as before and listed Valve, Microsoft Windows Store and Discord. When Valve was asked where the 30% commission came from, it simply had to mimic the physical retail split, with retailers buying games at lower prices and adding 30% on top.
It was recently confirmed that Epic Games Store will continue to give away games. In the third quarter of this year, the Epic Games Store averaged 2.4 million sign-ups per month. At the end of 2022, the Epic Games Store had 68 million monthly active users. By the end of this year, Epic wants to have up to 70 million monthly active users.
Source :Indian TV
