Epic Games Store, known for its platform exclusivity and free game giveaways, has recently admitted that it is not making a lot of money. During the ongoing court case between Epic and Google, the vice president and general manager of the Epic Games Store, Steve Allison, revealed that the store is still not profitable and that their goal is focused on growth.
In 2021, Epic CEO Tim Sweeney touted the success of giving away free games as a way to reach gamers and grow the business. However, despite offering developers an attractive revenue split and acquiring exclusive titles, Epic still falls behind Valve’s Steam on the PC platform and continues to operate at a loss. Their goal of claiming half of all PC gaming revenue seems far from being achieved.
It appears that the Epic Games Store heavily relies on revenue from Fortnite, as their other strategies have not been as successful. This news comes as a disappointment to the employees who were recently laid off, including those at Mediatonic, the developer of Fall Guys.
In a previous court case against Apple, Epic’s losses were highlighted, with at least $330 million in unrecouped costs from minimum guarantees alone. However, Sweeney defended these losses as necessary investments for building a profitable business in the future.
Unfortunately, the promised returns on these investments have yet to materialize, leaving employees and job seekers waiting for the store’s profitability to improve.
| Date | Event | Outcome |
|---|---|---|
| 2021 | Epic CEO Tim Sweeney praises free game giveaways | Business growth not sufficient to prevent layoffs |
| 2021 | Epic aims to claim half of all PC gaming revenue | Still lags behind Valve’s Steam and operates at a loss |
| 2021 | Epic relies heavily on Fortnite for revenue | Other strategies have not been successful |
| 2021 | Epic’s court case against Apple reveals significant losses | Investments have yet to yield expected returns |
Source: DOTESPORTS
