Three reasons why Epic Games can give away $17.5 billion worth of games for free.

Epic Games

Three reasons why Epic Games can give away $17.5 billion worth of games for free.



The Epic Video games Retailer offers away free video games each week usually good ones and but the corporate has by no means defined the way it’s managed to dole out 749 million copies with out going bankrupt. 

Till now. New paperwork printed as a part of the authorized discovery course of for Epic’s main antitrust lawsuit towards Apple had been printed final week. 

And between these and a sequence of tweets from Epic CEO Tim Sweeney, we’re getting our greatest look but at how the corporate’s not fairly throwing billions of {dollars} away

It’s not spending as a lot as you’d suppose

It pays many builders to offer away their video games and continuously provide new ones to maintain gamers coming again. That cash additionally covers Epic’s notorious exclusivity offers, so it’s not clear how a lot goes to the free video games alone.

Both approach, it’s a large fraction of a billion {dollars} that Epic’s shedding right here: $330 million, it appears. “Epic dedicated $444 million in minimal ensures for 2020 alone,” reads Apple’s authorized submitting. 

“That features not less than $330 million in unrecouped prices from minimal ensures alone.” However each of these numbers are far, far lower than the retail worth of these video games: $17.5 billion, should you do the maths primarily based on Epic CEO Tim Sweeney’s chart beneath.

Epic, and Sweeney, are prepared to take a position lots of of thousands and thousands of {dollars} into the platform

Sweeney publicly declared assist for these prices on Twitter over the weekend. The Epic Games Store has confirmed to be a improbable success in reaching avid gamers with nice video games and a improbable funding into rising the enterprise!”

Theoretically, the fixed stream of recent video games could preserve extra gamers utilizing the Epic Video games Retailer and, finally, possibly even spend their very own cash on video games there.

The corporate claims it’s already saw that borne out within the retailer’s speedy progress. They say gamers have spent greater than $700 million on the shop. They spend $265 million on video games that are not from Epic.

Fortnite has made huge money for epic games.

Whereas it doesn’t  know precisely how a lot Fortnite has made for Epic. It nearly definitely is quite a bit of cash: Epic brings which is greater than $700 million on iOS alone.  This has been there within simply two years, in keeping with Apple’s submitting.

And though the sport is not accessible on iOS due to Apple and Epic’s ongoing feud, Fortnite remains to be on many different platforms, and it looks like a secure wager that it’s nonetheless raking in a whole lot of money in every single place else, giving Epic revenue because it offers away video games on the Epic Video games Retailer.

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