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Epic Games lost almost $454M on EGS [52638]

 
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ggrobot
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PostPosted: Fri Apr 09, 2021 11:55 pm    Post subject: Epic Games lost almost $454M on EGS [52638] Reply with quote

A new court filing has revealed some interesting new details about Epic Games and Epic Games Store. According to the filling, Epic has lost around $181 million & $273 million on EGS in 2019 and 2020, respectively. This basically means that Epic Games Store has not been profitable these past two years. Epic expe

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Source: GGMania headlines
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Csimbi
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PostPosted: Sat Apr 10, 2021 1:39 am    Post subject: Reply with quote

Expected as much, lol
You can't go and give away titles for free without consequences.
That's the only reason why they have 160m registered users.
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gx-x
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PostPosted: Sat Apr 10, 2021 7:44 pm    Post subject: Reply with quote

they have 160 million registered users BECAUSE they are loosing money (giving shit away for free but require their launcher to be installed for the game to run).

I can do the same thing they are doing, then just default.

2023 before they turn over profit? Investors are going to liquidate, no way they accepted that timeline from the get go.
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PostPosted: Sat Apr 10, 2021 8:23 pm    Post subject: Reply with quote

Quote:
Court documents published this week as part of Epic's high-profile legal battle against Apple reveal Epic committed $444m in minimum guarantees for 2020 alone.

A minimum guarantee is an advance paid to a publisher or developer whether or not the game itself makes enough money to claw the advance back. An example is the €9.49m 505 parent company Digital Bros received from Epic for PC exclusivity for Remedy's Control.

It's a huge amount of money to pay out to developers for minimum guarantees last year, but it's something moneybags Epic is willing to do in order to take on Steam and its 30 per cent cut of revenue.

As Epic boss Tim Sweeney said in June 2019: "We believe exclusives are the only strategy that will change the 70/30 status quo at a large enough scale to permanently affect the whole game industry."

According to Apple's summary of the arguments it's bringing to court next month, and citing depositions from Epic executives, the Epic Games Store is unprofitable. Apple contends it "will not be profitable for at least multiple years, if ever".

Apple's filing reveals Epic lost around $181m on the Epic Games Store in 2019, and it projected to lose around $273m on the store in 2020. Even with "significant" growth, revenue for last year was projected at $401m. Epic has confirmed $700m was spent by PC players on the Epic Games Store in 2020, although only $265m of that was spent by players on third-party PC games in the Epic Games Store. So its $444m in minimum guarantees for 2020 alone is a big loss-leader.

Apparently Epic has admitted this trend will continue in the immediate future, and Epic projects to lose around $139m on the Epic Games Store in 2021. These are all "unrecouped costs" resulting from Epic's attempt to grow the Epic Games Store. That includes at least $330m in unrecouped costs from minimum guarantees alone. Ouch. That's a lot of games that missed their minimum sales target.

Here's the bombshell: "at best, Epic does not expect EGS to have a cumulative gross profit before 2027." Then: "As a result, Epic has funded, and must continue to fund, EGS through funding and capital raised by other parts of its business, which have been 'incredibly profitable' for 'several years'." That'll be Fortnite, then.
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Sabot
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PostPosted: Sat Apr 10, 2021 8:31 pm    Post subject: Reply with quote

gx-x wrote:
they have 160 million registered users BECAUSE they are loosing money (giving shit away for free but require their launcher to be installed for the game to run).

I can do the same thing they are doing, then just default.

2023 before they turn over profit? Investors are going to liquidate, no way they accepted that timeline from the get go.


Errrm, I think your missing a HUGE idiotic point here. Tell us all what platform out there DOESNT require a launcher to be installed to run ANY game in this current time and space in the world?
Steam,Origin,UBI... let’s see? I’ve never managed to buy ANY game from Steam,UBI or Origin. Let alone play it, (free or otherwise) WITHOUT their installer... cough... installed.
Enlighten us to this new-world platform that doesn’t exist that you can buy a current game today ‘that requires Steam et al to play’.
The only one I know of is GoG. Other than that you can’t buy a game that will play WITHOUT an installer/platform. Rolling Eyes
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gx-x
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PostPosted: Sat Apr 10, 2021 9:19 pm    Post subject: Reply with quote

Depends on the game. Some GOG games you can start and close the launcher, or start the game without having gog launched at all, since there is no protection on the game.
Also, that was not my main point, but for you it somehow is, instead of EPIC is going broke in 2022.

edit: so you might ask: why did he mention the launcher at all? Well, launchers are the ones that peddle stuff to users to buy. When Epic says "hey, free game, just install and register on our platform" what they are hoping to achieve is to retain the users and sell them something once they come since not everything is free. Obviously, some users did buy certain games for whatever reason, then again, way less then they expected hence their "turn profitable in 2023 (how much profit will they turn going from ~ minus 500 million negative?! They expect to retain the users that came for free games and sell them games. As if those people don't have other 100 launchers already).

Then again, UK government expected to solve transgender bathroom problems by putting "you can use whatever toilet you like" into law. They did not expect that now you (establishment owner) don't have to have male/female toilets, one toilet is up to code now.

In 2023, if they (EPIC EGL) survive, they might turn profit that will be laughable compared to investment. What they don't expect is investors pulling out their money and buying...Tesla shares that turn profit all the time. Investors care only about profit, they don't care for gamers or games...
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Sabot
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PostPosted: Sun Apr 11, 2021 12:53 am    Post subject: Reply with quote

No it’s not my main point, it’s yours! You said you practically don’t need a launcher for any other game, except epic. Your talking shit. Doesn’t matter if you like or don’t like any platform, you NEED a launcher. End of.
Already mentioned GoG. Your not justifying shit, just talking it...
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gx-x
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PostPosted: Sun Apr 11, 2021 1:04 am    Post subject: Reply with quote

you are making shit up...
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Genoism
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PostPosted: Sun Apr 11, 2021 7:35 am    Post subject: Reply with quote

What Epic is doing is smart, yes they bleed money now but the only way to break into the market is by going down the road they have. Proof is in the pudding, every other platform that tried to compete with steam has failed. None of them are main stream.

Once they've established a decent player base that purchases games from them rather than steam, they will be the king platform, not steam. And once that happens we can start to finally some see some interesting changes in the industry as steam will have finally met its match and actual competition will ensue.

This is how business works gents. Welcome to corporate america.
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Sabot
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PostPosted: Tue Apr 13, 2021 11:39 am    Post subject: Reply with quote

gx-x wrote:
you are making shit up...


You obviously looked in the mirror.
Deflecting the subject away from your stupid incompetence doesn’t make them go away. Especially when you think the world believes everything you say and there’s others out there that fall off their chairs in disbelief.
https://www.versluis.com/2020/08/prevent-the-epic-launcher-from-closing-when-you-open-unreal-engine-or-games/

Yeah, you don’t need a launcher for games today... what a plonker
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gx-x
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PostPosted: Tue Apr 13, 2021 11:46 am    Post subject: Reply with quote

SABOT's wrote:
No it’s not my main point, it’s yours! You said you practically don’t need a launcher for any other game, except epic. Your talking shit. Doesn’t matter if you like or don’t like any platform, you NEED a launcher. End of.
Already mentioned GoG. Your not justifying shit, just talking it...


again, since you insist on being stupid, you are projecting, and making shit up.

edit: consider yourself ignored from this point forward. Good for you and me.
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