author: Bart Swiatek
Tim Sweeney Satisfied With Epic Games Store, Losses Called 'Investments'
Epic Games' CEO Tim Sweeney commented on Twitter about the Epic Games Store platform losing money. In his opinion, it is an investment that enables the store to grow and reach out to players.
IN A NUTSHELL:
- According to the head of Epic Games, the losses incurred by Epic Games Store are an investment - enabling the platform to reach new players and grow;
- The store is expected to become a thriving business in the future.
Thanks to the dispute between Apple and Epic Games, and more specifically the documents presented in this case before the court, we learned that the Epic Games Store platform incurs losses amounting to hundreds of millions of dollars. The reason is not the, lower than in other stores, 12% revenue share, which seems to be enough to cover the operating costs. The problem lies elsewhere - in the gigantic expenditures on free titles and exclusives. However, the head of Epic Games sees the situation differently - in his opinion, EGS' strategy has been a huge success, because it has helped the company reach new players and develop the platform.
Tim Sweeney emphasizes that although Apple calls the situation in question "a waste of money," in fact, it is an investment in a platform that will begin to generate profits in the future (it is worth reminding that, according to the aforementioned litigation documents, Epic Games predicts that the store will begin to make money in 2023).
Epic Games Store launched in December 2018. The store has repeatedly stirred up controversy over the acquisition of exclusive titles, but it also continues numerous giveaway action, making at least one free title available every week (although there are sometimes more).