Epic Games Store Still Losing Money
Launched in December 2018, the Epic Games Store has been operational for nearly five years, yet it remains unprofitable according to reports by Wccftech and The Verge. This revelation surfaced during Epic’s litigation against Google over Fortnite’s monetization issues, with Steve Allison, head of the Epic Games Store, testifying to this effect. He also disclosed that the platform’s current primary objective is to expand its user base rather than to generate profit.
Previously, in the 2021 lawsuit against Apple over similar concerns, Epic’s CEO Tim Sweeney acknowledged an annual loss of approximately 300 million USD for the Epic Games Store. However, at the time, they were optimistic that, thanks to aggressive marketing tactics, the store would become profitable by 2023. Email communications released at the time indicated Epic’s belief that their store should command half of the PC gaming market’s revenue share.
However, as evidenced by Steve Allison’s testimony, the Epic Games Store has not achieved this objective.
Beyond offering free games, the Epic Games Store has also employed the strategy of securing exclusives for PC games to attract more players. Titles like “Final Fantasy VII Remake” and “Psychonauts 2” made their initial debut on the Epic platform. Additionally, Epic has launched an Exclusive First Release Program for developers, which offers a higher revenue share to entice more developers to release their games exclusively through their storefront. These marketing endeavors are costly, and the Epic Games Store still has a considerable way to go before it can achieve profitability.