181 million and 273 million, which are the losses of the Epic Game Mall in 2019 and 2020, respectively, in U.S. dollars.
Epic’s loss related information has been mentioned by many media recently. PCGAMER recently stated that a court document about Epic and Apple was made public. This document revealed a lot of information to the outside world, including issues that everyone may be concerned about, such as : How much does the Epic Games Store spend on exclusive game policies?
For a long time before, although we all knew that the Epic game store spent a lot of money to contend with the Steam platform and invited developers to its own platform for a limited time, we never knew exactly how much the “heavy money” was here. This document reveals that this number is 440 million.
“To be precise, the 440 million yuan mentioned here is the sum of the minimum guarantee money they pay for games that log on to the Epic Game Store and monopolize for a year. This means that regardless of whether the game is sold well or not on the platform, the Epic Game Store will Pay the developer a sum of money in advance.”
So has the cost of this 440 million been recovered in the past two years? The answer is that Epic Games Mall seems to have lost a lot of money.
In this court document, Apple pointed out that the Epic Game Mall lost 181 million yuan in 2019 and an estimated loss of 273 million in 2020. The total loss in two years is expected to exceed 400 million U.S. dollars. After calculating an account, Apple subsequently pointed out Epic may not be able to turn losses into profits until 2027. In addition, after looking at the year-end report released by the Epic Game Mall last year, you will also find that in this report, Epic said that players will spend 700 million on the platform in 2020, but the sales of third-party games are only 265 million. , There is still a gap with the 440 million paid out.
In response to Apple’s remarks, Epic also made its own response in a document. Epic first denied the above-mentioned period for turning losses into profit, believing that Epic Games Mall could reverse the loss and turn to profitability in 2023. In addition, Epic stated What Apple calls “losing money” is also part of its own investment plan, and these expenses are all part of Epic’s plan. Tim Sweeney, CEO of Epic, explained the reasons for the current loss in the document. He believes that this is because at this stage they are bearing the cost of marketing and new users in order to gain market share.
Obviously, after the news of this loss was exposed, Tim Sweeney did not shy away from talking about it. He first retweeted the report of IGN pointing out the loss of Epic Game Mall, and accompanied the text: “Yes, that’s right! But the facts are also true. It proves that our policy of attracting players through excellent works and investment for business development are both a success.”
In the comments, he also attached a statistics chart of the Epic game mall in 2020 to support his statement:
The purpose of Tim Sweeney’s release of this picture is obvious: to show the results of the Epic Game Mall in the past year, and leaving aside the 700 million revenue and 265 million expenditures on third-party games that have been mentioned in the previous article, we can also see from this picture Here are two other key data: Epic Games Mall has absorbed more than 160 million users in the past year and distributed 103 free games for everyone. To some extent, Tim Sweeney is trying to attract users and bring free games to everyone. The achievements of the game balance everyone’s negative perceptions and emotions about the company’s losses.
The lawsuit between Epic and Apple will be officially opened on May 3. No matter how fierce the remarks and confrontation between the two companies are, the outcome of the competition between the two companies will still be questioned, but what is certain is that Epic The spread of loss reports and Tim Sweeney’s remarks have triggered a wide range of discussions among players. Some criticized, some supported, some began to look back at what Epic had brought us from beginning to end, and some began to consider what the Epic game mall should be. Where to go.
Under the loss, what does the Epic Game Store bring us?
In December 2018, Epic Games Mall was officially launched as a digital game publishing platform. When this platform was first launched, it is not an exaggeration to describe Epic’s public opinion trends at the time, such as the negative reviews at the time. “Metro: Escape” has caused a lot of negative emotions among players due to the limited time exclusive event of Epic Game Mall, which is also the reason why many players dislike Epic Game Mall.
That year, the first-person shooter game “Metro: Escape” released by Deep Sliver was originally planned to be launched in February 2019 and the pre-order page has been opened on the Steam platform, but the Epic game mall, which was launched halfway, suddenly issued an official announcement in January. It has reached a partnership with Deep Sliver, and the PC version will be exclusively available in the Epic Game Store for a limited time. This means that players who had not pre-ordered games on other platforms at that time could only choose Epic Games as a single channel to purchase, which caused dissatisfaction among many players.
Deep Sliver subsequently issued an announcement to explain to players that they said that they chose Epic Game Mall mainly because Epic provides them with 88% of the sales share (Steam platform provides developers with 70% of the sales share). Deep Sliver believes that Epic Game Mall’s policies Obviously, it is more beneficial to the company’s income, enabling them to invest more money in content creation and seek more benefits for players.
However, it is clear that most players did not buy the reason they said to Deep Sliver at the time. On the one hand, many players did not trust this new platform that was launched halfway. This move by Epic was like a forced force. You buy things in your own store; on the other hand, Steam, as a platform that has been developed for many years, has a large number of game users and their high loyalty cannot be underestimated, so the game is unsuspectingly removed from Steam , Provoking public anger is also destined to be an inevitable event.
In addition to “Metro: Escape”, the Epic Game Mall also signed limited-time exclusive contracts with many game manufacturers when it was just launched, but for most players at the time, the launch of the Epic Game Mall brought more It is chaotic, monopolistic market and unpopular platform experience.
Perhaps the Epic Game Mall has long expected that some of the behaviors in the initial stage of the launch will attract negative reviews, so they soon launched a series of policies to narrow the distance with the players and try to reverse the reputation. In addition to using only 12% of the share to attract game developers, they introduced a free game delivery policy shortly after the launch. Specifically, the Epic game mall will give players free games every week. You only need to register an account. After completing the purchase, you can own this game forever. The introduction of this policy immediately won praise from many players.
In this way, Epic Game Mall has successfully established close cooperative relations with some game developers after its establishment, and after a period of time on the line, the reputation among the player community has also recovered, and there have been many by the end of 2019. Manufacturers once stood up to support Epic under their real names. For example, in an interview with GameSpot, Ubisoft’s spokesperson said that Ubisoft will support Epic and their third-party distribution model. The parent company of Deep Sliver mentioned above The CEO of koch Media also gave Epic a very positive evaluation. They believe that Steam’s profit sharing model is no longer suitable for the current market. Developers need an electronic distribution platform that brings them more profit margins, such as Epic. Game mall.
If at first everyone thought that the Epic Game Mall brought chaos and unpopular exclusive policies, then two years after the Epic Game Mall went online, both game developers and players have changed it.
Just as Tim Sweeney posted, the Epic Game Mall has indeed brought 103 free games to players since its launch. In addition, because of the 12% share policy, it has also brought developers more profitable space. Epic Game Mall The money spent has indeed brought some changes to the industry to some extent, and has also brought some benefits to the players. We can’t deny these data.
However, it is also undeniable that Epic has indeed suffered losses for two consecutive years due to these policies it has implemented. For the time being, regardless of whether these policies are absolutely correct, whether it can bring more changes to the industry in the end, some players in front of them The question for discussion has become: Can the Epic Game Store continue to survive? How to seek better development in the future?
Can the Epic Games Store continue to survive?
Every company will inevitably face the risk of loss, and Epic Games is no exception. To discuss whether the Epic Game Mall can survive, we must first understand the truth: a simple loss does not mean that a company cannot survive. Moreover, The Epic Game Mall is only a part of the business of the big company Epic Games, which means that as long as Epic Games can give the Epic Game Mall enough financial and strategic support, it will not easily fall.
Therefore, the essence of Epic Games Mall’s ability to survive depends on two points: First, whether the financial situation of the company behind it, Epic Games, can maintain the operation of its game mall; Second, whether Epic Games Mall’s future operational policy adjustments can satisfy players. And the demands of the market, we might as well look at the first point first.
The company behind Epic Games Mall, Epic Games, is a video game and software development company founded in the 1990s. It owns a variety of game products such as Fortnite and Gears of War, as well as its own development of Unreal The engine (Unreal Engine) is also well known in the industry. Based on the current information, it may be difficult for us to systematically count and analyze the specific revenue of Epic Games’ entire enterprise, but we can almost be sure that Epic Games’ ability to attract funds is not acceptable. Underestimate.
On the one hand, this ability to attract money is reflected in the profits brought by “Fortress Night”. We can review the revenue this game has brought to the company in the past two years: In 2018, the data research company SuperData once reported that “Fortress Night” 》The annual profit for the year reached 2.4 billion U.S. dollars, breaking the annual revenue record of all games in history. In 2019, “Fortnite” once again won the global revenue list with revenue of 1.8 billion U.S. dollars; this ability to attract money is also reflected in In terms of financing last year and this year, in 2020, Epic Games received US$1.78 billion in financing and was valued at US$17.8 billion. Just recently, Epic Games once again announced that it has received a new round of financing of US$1 billion, including Sony’s additional funding. The company’s US$200 million strategic investment and the company’s valuation rose to US$28.7 billion. This information means that investors continue to be optimistic about the company and still have huge potential in the future.
It can be seen from this that Epic Games not only has a continuous and stable source of income, but also obtained a large amount of financing funds. The short-term loss of Epic Games Mall is not a fatal blow to Epic Games. From this perspective, as long as Epic Games pays sufficient attention to the product project of Epic Games Mall and continues to provide funding and policy support. The mall will not easily fall down. Obviously, from Tim Sweeney’s speech by Epic Games Mall, it can be seen that this There is no doubt about it.
Then, the focus of whether the Epic game mall can be maintained falls on the second point, whether it can meet the demands of players and the market.
If the focus of the Epic Game Mall in the past two years is to promise higher revenue from developers and give away more games to players for free, after gaining word of mouth and these new users, Epic Game Mall will want to support it in the next few years. What we should think about is how to improve the user experience of the platform, that is, to solve the problem of user retention. Epic regards Steam as its main competitor, but apart from developer sharing and free game delivery, Epic is no match for the latter in terms of platform functional experience, game inventory, or player community atmosphere. After IGN reported the loss of Epic’s game mall , Many players also commented below, hoping that Epic can make more efforts in user experience and functions:
Epic Games Mall is also clearly aware of the importance of the problem of imperfect platform functions. In last year’s annual report, they mentioned that the mall’s wish list, social functions, achievement functions, player profiles, etc. will be improved in 2021: ” In 2021, in terms of product feature updates, opening more community-centric features will become the top priority. We hope to provide users with more personalized experiences at one time.” And the further improvement of this platform will undoubtedly become Epic The key to whether the game mall can truly win the hearts of the people and continue to sustain it.
Returning to the topic of the future survival of the Epic Game Mall, from an economic point of view, the Epic Game Mall is obviously capable of sustaining it, and its problem lies in how to live better.
“Apple misrepresents it as “losing money,” but I think the money spent now is to build a better profitable project. This is investment! Whether you want to build a factory or a store, It’s still applicable to one game.”
Although Tim Sweeney has always stated on Twitter that he is confident in the future of the Epic Game Mall, according to the above analysis, money is not a problem or the biggest problem for the Epic Game Mall, but if you want to harvest more users and To retain these users, the most important thing is to see whether he can fulfill the promise of improving platform functions and user experience.
Epic Games Mall has always stated that it hopes to bring changes to the industry. I think this original intention is a good thing for game developers, players, and the market. But before that, Epic was confident and expressed no While the money is too bad, perhaps the most important thing in front of us is not to continue to throw money, but to think more about the players’ real demands. Only in this way can the Epic game store “live” better.
Source: Bonfire Camp