Epic Games has reportedly lost around $ 273 million in expenses for the Epic Store last year, as part of an ongoing effort to compete with Steam.
Video game company Epic games burned through cash throughout 2020, losing roughly $ 273 million as a result of spending on the Epic Games Store, as well as competing with rivals like Steam. With the COVID-19 pandemic forcing gamers to stay home more than ever last year, Epic stepped up its already popular free game initiatives to bring fans a wide range of titles and elevate the company to one of the the most recognized. gaming brands in the world.
These free games range from smaller indie titles like Stanley’s Parable Y Tormentor X Punisher to triple A blockbusters like Watch dogs Y Star Wars: Battlefront 2. The most talked about giveaway came in the summer thanks to the free one-week launch in May Grand theft auto 5, which crashed Epic’s servers just minutes after it started and increased the player base of the already beloved online component of the open-world crime title to new heights. All of these specials cost money at the end of Epic, and it turns out the company was willing to pay through its noses during 2020.
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According to Pc gamer, Epic’s great legal battle with Apple over Fortnite Revenue on the App Store has brought to light Epic’s expenses for its Game Store in 2020, totaling about $ 444 million. $ 273 million of those expenses served as a net loss due to Epic’s many free gifts throughout the year. This includes exclusivity agreements and “minimum guarantees” for publishers to keep their titles out of competing services like Steam. Epic itself is not particularly concerned about this large amount of lost earnings, as a recent company presentation remains hopeful that earnings will start to rise by 2023 and that these expenses will be part of a long-term investment thanks to maintenance. from Epic Store. 12 percent of the proceeds from any game.
This trust is not without merit, as Epic has enjoyed a steady stream of earnings from its Unreal Engine and Fortnite. The latter is still considered one of the most successful Battle Royale titles on the market today, bolstered by its ongoing Season 6 and high-profile events like virtual concerts by Travis Scott and Kaskade. As for Unreal, it remains the gold standard for video game development, with fans even using it to create high-end remakes of scenes from Mortal Kombat 4 Y The Legend of Zelda: Ocarina Of Time.
While $ 273 million is a lot of money to take as a net loss, especially amid an ongoing lawsuit against a major company like Apple, Epic is confident that both the profits it will make from its exclusive settlements and the goodwill it has had . building players throughout the COVID-19 pandemic will more than make up for it in the long run. Meanwhile, it seems that the Epic Games Store It will continue its career as a major competitor to Steam and a dominant force in the PC gaming arena.
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