Monday, August 9th 2021
Epic Games Store Keeps Losing Money, Expected Unprofitable Until 2027, Even with a Massive $500 Million Investment Behind It
Epic Games Store, one of the many products of the Epic Games company, is the current number one contender of Steam game store, which used to be Valve's monopoly in the gaming market. Having another contender is nice and competition is always welcome, however, it doesn't seem like running a games store is a cheap venture. In the recent legal dispute between Apple and Epic in California state, we have discovered some interesting details about Epic Games Store (EGS) and its financial background. According to the documents appearing in the court, EGS is not considered profitable until 2027, at least.
Apple has told the court that "Epic lost around $181 million on EGS in 2019. Epic is projected to lose around $273 million on EGS in 2020. Indeed, Epic committed $444 million in minimum guarantees for 2020 alone, while projecting, even with 'significant' growth, only $401 million in revenue for that year. Epic acknowledges that trend will continue in the immediate future: Epic projects to lose around $139 million in 2021." This information shows that Epic has sunk a lot of cash in the store, however, the company expects EGS to become profitable at some point, where the original investment will be returned.
Source:
via PC Gamer
Apple has told the court that "Epic lost around $181 million on EGS in 2019. Epic is projected to lose around $273 million on EGS in 2020. Indeed, Epic committed $444 million in minimum guarantees for 2020 alone, while projecting, even with 'significant' growth, only $401 million in revenue for that year. Epic acknowledges that trend will continue in the immediate future: Epic projects to lose around $139 million in 2021." This information shows that Epic has sunk a lot of cash in the store, however, the company expects EGS to become profitable at some point, where the original investment will be returned.
172 Comments on Epic Games Store Keeps Losing Money, Expected Unprofitable Until 2027, Even with a Massive $500 Million Investment Behind It
As for the concerns chineese will hatvest my data, 'murica doing the same en-mass via Steam, Origin, uPay, Google, Facebook and whatnot. I'm manipulated on a daily basis via methods most people can't even comprehed.
Fearing the chineese looks ironic from that perspective...
Legendary - github.com/derrod/legendary
Heroic - github.com/Heroic-Games-Launcher/HeroicGamesLauncher
If Epic want to be successful with their store, they'll need to realise that people don't need another generic online storefront. There's way too many of them already. Instead, they should find and integrate a service into their client that people actually use to make their app attractive instead of mandatory. Expecting a profit without innovation is arrogance.
You want Steam because of their vast game selection and/or community and modding services.
You want Origin because that's where EA games are found.
You want GOG because it's DRM-free.
You want Epic because... ?
Looked at many of these free games not many were worth the disk space pretty much looked like floppy disk era games at best.
Of course it’s about the 30% cut. Epic want to run their own app store within their apps specifically to cut out Apple, which goes against their contract.
I think you’ll find that Apple’s contract is defensible too, as often what’s legally possible isn’t morally right. And is this immoral? That’s debatable.
GOG is the best for very obvious reasons.
I also don’t see that consoles and phones are that different. Don’t most consoles have browsers and video and music apps? No one here would dream of using a console as a general purpose computer, but in court, the use distinction isn’t so far apart. You can do many of the same things on both products, just some not as well as others. You can even use a mouse and keyboard on Xbox.
On the other hand, I don't like launchers they just make the whole experience awful, download the game and activate it.
Ever reinstall Windows and then reload your Steam library? That takes like what, couple mins to go to settings and link up the drives you have your games on. You can be playing games again in minutes!
Now, ever reinstall Windows and then try to reload your Epic Games library? Despite literally every other launcher of the like having this option of "locate installed games" as a standard feature, Epic has for whatever reason not implemented this. What this means is each time you setup a new OS you have to redownload the entire game. Now imagine if you had 100's of games on Epic....Worse yet, imagine yourself being on DSL internet with a capped 3.7Mb/s connection to redownload 2 TBs of games.......lol fuck that!
There is a "workaround" and it's not totally documented well, even by Epic. basically need to start downloading the game again, then pause it (you might have to rename the old/existing install folder because the new install folder will not be created if a folder with the same name already exists, ie, download will not even start!). Then you need to open Task Manager and forcefully close Epic Game Launcher by End Task. Then navigate to where the new download folder was just made and then copy over all the game data from the previous install location. But don't mess with that EG store folder or whatever it is called since that has some info regarding the downloading process, if you mess with it, it will just keep restarting the download from scratch. When you reopen Epic Game Launcher and try to resume the download it will then notice all the new files and more or less goes through the "validation" process that any Steam user would be familiar with (the old trusty "did you validate the files" thing) Even then it may still need to download some more data, but at least its just a small % rather than the whole game.
Ever try moving a game's install location on Steam? Oh, another 1 min task you say? yes, it's simple to right click on a game, and chose a different install location (obviously there is time beyond a min to actually move all the files but that's besides the point!)
Now, every try moving a game's install location on Epic? It's another shit show disaster like the above new OS issue creates. There are a couple non text doc files you need to find and open with a text editor to alter specific folder paths and titles. I don't remember the specific files off the top of my head but it also is not going to be something a regular user will want to do. There is no feature for this in Epic, period. It's another workaround
Ever notice you can close Steam and return to a download later on that same boot, or even shutdown your PC and open Steam later to resume the download? Great and expected feature!
Now, ever try and do that with Epic? oh you can't?! Boo hoo says Epic to all of its users! Why you need to do the force close routine I mentioned above is because you cannot even CLOSE the Epic Game Launcher while downloading as it will literally start the whole download process over from scratch when you try to resume. It doesn't matter if your PC is on the same boot cycle or if you did a power cycle. This is bat shit insane stupid! The work around is doing that silly pause and then force close the program....because that must somehow make it close without going through the commands that would result in the download to start over during the next resume attempt.
Regardless of these workarounds existing, these are major and avoidable flaws in their systems. They really lack user-friendliness and ease of use. Other companies have found ways to implement these things, so Epic needs to find a way to be competitive here and offer the same if not more features rather than less.
Those are the types of reasons I imagine why more people are not utilizing EGS!!!! Luckily I have only made it a couple games deep on Epic before I realized these flaws, so I chose to buy games elsewhere whenever possible. I will be fine purchasing more games from them in the future if they resolved these problems of course
As for your list, here's the continuation:
You want more storefronts because competition has the potential to breed innovation and lower prices, providing benefits to customers, while monopolism does the opposite. It's true that Valve has done some good with Linux gaming, and they've also pushed a bit for VR. But compared to the vast profits they've scraped in from Steam? Pennies. Nothing. Seriously. Steam has had a de facto monopoly on PC game sales for more than a decade. What kind of profits do you think they've made in that time? And remember, they've only developed a handful of games in the same span, all the while repeatedly screwing over developers. And like Steam doesn't scrape personal data? Steam absolutely has its benefits. Remote Play is nice. They were relatively early with cloud sync. I guess their social features are good, but Discord beats them hands down. Treating Valve as if we as gamers owe them anything, or that they have gone above and beyond in delivering even close to a sensible return on the staggering 30% of nearly all game sales on PC they've raked in for more than a decade? That's lunacy. We don't owe Steam or Valve our allegiance in any way, shape or form, and we only stand to gain from competition. Did you read my post? There's a difference between a cut on App Store sales and in-app purchases, which have zero to do with the App Store. Charging a fee for the former is fine (though IMO 30% is stupidly high), but the latter? That's bordering on extortion. So if the law is immoral we should just leave it at that, and not challenge it? Yeah, sorry, that's a brand of fatalism I'm not particularly interested in buying. And I'm well aware that US regulatory bodies have long since abandoned effective anti-monopolist regulations, but we can still hope that they have some principles. And, given how this case is dragging on and how much effort Apple is putting into it, it hardly seems like this is a cut-and-dry case of contract law, does it?
Also, Epic doesn't want to run an app store, they want to run their own in-app purchase solution. Skins for Fortnite are not apps.
Also, that workaround you're mentioning is wrong. The procedure is: move/rename game folders, start game install, pause it, copy/rename games back to install location, resume install. No force close, to application restart, nothing like that. Is it hacky? Absolutely. Is Steam's solution far superior? No doubt. But you're making it look far worse than it is.
If Epic thinks they can entice me to their launcher without even feature parity with Steam by just throwing millions of dollars around, they can think again. Sure I greedily picked up almost all of their free games. But that's because I hope that if they ever kill their store, they might give back Steam keys.
No, it doesn't. When was the last time you updated the Epic Client? They changed that a long time ago.EDIT:
I take that back, you are right. I still does that. Just tried it and it still cancels.