And it will also have 12 percent of the developers as well. And this is happening at a time when Epic Games is struggling with allegations that it leaked user data to the Chinese government.
Epic Games had a good 2018. In the competition with PUBG, the Fortnite battle game helped Epic Games get a $ 15 billion valuation, according to the numbers shared in September. According to the numbers shared by the developer at the same time, Fortnite had already registered 78.3 million monthly players. By the end of November, Epic Games had confirmed that Fortnite had registered 200 million registered players. The growth throughout the year has been phenomenal. There are estimates that Fortnite earns nearly $ 2.5 million per day in revenue, which helped Epic Games earn $ 3 billion in profits in 2018.
But not everything has been easy for Epic Games. The developer has disagreed with Apple and Google, through the distribution of revenue from App Store and Play Store. And now they want to advance the bet more. The Wall Street Journal reports that Epic Games CEO Tim Sweeney has confirmed that they intend to sell Android games also in their app store. Epic Games Store was launched in December for the Microsoft Windows and Apple macOS platforms. Epic Games will allow developers to maintain 88 percent of the revenue earned, which means that it will accumulate 12 percent of all sales made on the platform.
Currently, Epic Games Store has, in addition to the immensely popular Fortnite, Ashen, Darksiders III, Genesis Alpha One, Journey, Outer Wilds and Unreal Tournament. The lower cut than the corners of Epic Games in your store already has Steam, a popular platform for PC games, to reduce the part of the profits they get from developers. Could it have a similar impact on the revenue sharing policies of Google and Apple?
The reality is that the mobile strategy of Epic Games will revolve around Android, since there is not much room for maneuver in the Apple iOS platform for similar tactics. That’s why Fortnite is available in the Apple App Store without too many problems, while Fortnite is not yet in the Google Play Store for Android devices (you need to download the launcher directly from Epic Games Store) because Epic Games Find that Google’s revenue is similar Policies to be a problem. Apple and Google maintain up to 30 percent of revenues. “Thirty percent is disproportionate to the cost of the services these stores provide, such as payment processing, download bandwidth and customer service,” Sweeney said last year. Epic Games is happy to pay that part to Apple, or at least it has been, all this time.
According to the data of the Visibly Alpha research form, the income obtained from the App Store and the Play Store represent up to 5 percent of the total annual revenue for Apple and Google, respectively.
Unfortunately for Epic Games, this show of force comes at a time when there are accusations that the developer leaked data to the Chinese government. A Reddit user, Anmail, in a post says: “According to even the TOS, Epic Games Store is a literal spyware, they are not even trying to hide it, their TOS states that they have the right to monitor it and send the data to Its parent company, and who is the parent company of Epic? The Chinese developer is known to spy on the Chinese government Tencent, the same Tencent who is working hand in hand with the Chinese government to work on tools to spy on their own citizens. “Epic Games responded to those allegations.” The language related to the exchange of data with parent companies refers to Epic Games Inc. It is a US-based company. This language exists because when you buy an Epic game in certain territories (such as Europe), the registered seller is our local subsidiary company (for example, European) for tax purposes, but the data is finally stored in Epic Games Inc. Tencent is not an Epic parent company. Tencent is an independent company that is a minority investor in Epic, along with many others. However, they do not have any access to our customers’ data, “Sweeney said in a response to the publication,” It’s safe to say we have not heard the latest of this.
Epic Games is not the only developer who has a problem with the revenue sharing policies of Apple and Google. The streaming service Netflix recently made adjustments to its iOS application that eliminates support for iTunes billing for new and recurring customers, which removes Apple from the process of getting people to subscribe for new subscriptions or users existing renew your subscription. Apple currently receives 30 percent of revenue during the first year, and if the same user continues with the subscription through the payment methods of the App Store, that percentage is reduced to 15 percent. This occurs after Netflix withdrew the Play Store billing option for the Android application in May of last year.