Epic Games Store Loses Millions Of Dollars Due To Frequent Free Game Sharing
Creating a marketplace platform for PC games is certainly not easy. Because it must be able to compete with other platforms such as Steam, which is still at the top as the most popular PC gaming platform. This also makes the Epic Games Store, which is currently only 2 years old, have to take risky steps to attract the attention of gamers. Like, distributing a series of free games and attracting several developers to get exclusive labels.
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Of course, this strategy costs a lot of money and risks causing huge losses. This seems to have begun to be proven because it is reported that EGS is willing to lose millions of dollars to gain popularity as a PC gaming platform.
According to a report from Eurogamer, in 2019 EGS lost $181 million in costs. Losses also continued to increase in 2020, amounting to $273 million or equivalent to 4 trillion rupiah. The data was taken from a legal document owned by Apple which some time ago had sued EGS for microtransaction problems on the iOS platform.
However, this amount does not only come from free games. A number of expenses are also used as expenses minimum guarantee. The term minimum guarantee is defined as the fee given to the developer so that the game can be excluded as a guarantee if the profit from selling the game does not reach the target. It is reported that EGS spent $444 million or around 6.5 trillion rupiah to pay for the guarantee.
In fact, until now, EGS is still at odds with Apple due to the deletion of the Fortnite game on the iOS platform because it is considered not to comply with the rules regarding microtransactions. Apple also confidently predicts that EGS will suffer huge losses in the near future. The plan is that the matter will be brought to court again in May.
With the various problems faced, Epic Games is still confident that the strategy used today will be a big advantage. Although it admits that until now the company has not yet returned its capital.
Epic Games also predicts that the company is expected to make a profit in 2023. Considering the Fortnite game which is currently quite successful in providing a lot of content coupled with a fairly large and active community.
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