In its own legal filing, Epic cites Allison’s deposition, during which he stated that the company expects EGS profitability by 2023, five years after launch. “ has proven to be a fantastic success in reaching gamers with great games and a fantastic investment into growing the business,” Sweeney said. It’s no surprise that Epic Games founder Tim Sweeney tweeted out a clarification to one of the many enthusiast media stories parroting Apple’s framing in its headline. EGS is only two years old, and while it no doubt benefitted from COVID lockdowns (as did the rest of the industry), it’s still early on in its growth cycle. Epic also shared in the same blog post that play hours grew 70% from 2019 to 2020 and monthly active users were up 75% from December 2019 to December 2020. Looking at that comparison alone, one might draw the conclusion that Apple is intimating: Epic Games Store simply isn’t working. We know that Epic Games Store third party sales amounted to about $265 million in 2020. More money was spent on storefront activities than EGS earned in those years.Ī selection of games available on Epic Games StoreĪpple also resurfaces that Epic spent $444 million on exclusives via minimum guarantee arrangements. Apple frames that as a “loss,” and this is factually accurate. Allison states that Epic was not profitable in the amount of about $181 million in 2019 and about $273 million in 2020. That doesn’t mean Apple isn’t factually accurate, just that it is applying the facts in a manner that best suit its goals.Īpple cites a deposition from Epic Games vice president and EGS general manager Steve Allison. It’s capitalism in one of the most litigious environments. The goal is to win within the confines of the law. In no way is Apple concerned with a fair portrayal of Epic’s activities, nor should it be. By definition, the statements in the filing are designed to create sympathy for Apple and paint its opponent, Epic, in the worst possible light. Before we dive into the numbers, we have to address the context in which the public has been given access to them.Īpple’s legal filings serve a singular purpose: to give the Cupertino, California giant the best chance at retaining its alleged monopoly in the iOS ecosystem. Instead, information about Epic’s activities surfaced in one of Apple’s court filings. It is under no such obligation to publicly report its financial position. Typically when we talk about a company’s earnings and losses, the information comes from quarterly filings required of every public company. And it’s one that has captivated the game industry over the last week as details of the Epic Game Store’s financials have come to light. That’s one question the courts will be examining when Epic’s antitrust suit against Apple goes to trial next month. ![]() What is the difference between “losing money” and “investing?”
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