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Epic Games Store Loses Millions of Dollars Due to Frequently Distributing Free Games

Epic Games Store Loses Millions of Dollars Due to Frequently Distributing Free GamesCreating a marketplace platform for PC games is certainly not easy. Because they have to be able to compete with other platforms such as Steam, which until now still tops the list as the most popular PC gaming platform. This also makes Epic Games Store, which is currently only 2 years old, have to take risky steps to attract the attention of gamers. Like, sharing a series of free games and hooking up several developers to get an exclusive label.

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Of course, this strategy costs a lot of money and risks causing big losses. This seems to have begun to be proven because EGS reportedly is willing to lose millions of dollars in order to gain popularity as a PC gaming platform.

According to a report from Eurogamer, in 2019 the EGS lost costs of $ 181 million or around 2.6 trillion rupiah. Losses will also continue to increase in 2020, amounting to $ 273 million or the equivalent of 4 trillion rupiah. The data was taken from a legal document owned by Apple which some time ago had sued EGS due to microtransaction problems on the iOS platform.

GTA V, which was free on EGS, made it viral

 

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However, this number does not only come from free games. An amount of expenditure is also used as the minimum cost of the 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 game sales profit does not reach the target. It is reported that the EGS spent $ 444 million or around 6.5 trillion rupiah to pay for the guarantee.

In fact, until now the EGS is still at odds with Apple due to the deletion of the Fortnite game on the iOS platform because it is deemed not to comply with regulations regarding microtransactions. Apple also confidently predicts that the EGS will experience major losses in the near future. The plan, the problem will be brought back to court in May.

With the various problems faced, Epic Games is still confident that the strategy used today will be a big advantage. Although his party admits that until now the company has not returned its investment.

Epic Games also predicts that the company is expected to reap profits in 2023. Given the Fortnite game which is currently quite successful in providing a lot of content coupled with a large and active community.

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