'It was worth it': Argument with Apple reportedly cost epic $1 billion

“It was worth it”: Epic’s dispute with Apple reportedly cost $1 billion 23 comments

In an interview with The Business Insider, Epic CEO Tim Sweeney provides insight into Apple’s long legal dispute over the App Store. In his opinion, the venture cost the company a lot of money, but was still a worthwhile venture for the publisher.

Summary :

Court costs the smallest bill

As Sweeney stated in the conversation, the lawyer and court fees for the more than five-year dispute would have “only” amounted to $100 million. However, the lost revenue would weigh much more: “I can’t predict how much we would have made on iOS, but in the two years we were on the platform, Fortnite made about $300 million,” the CEO said. He adds that “hundreds of millions of dollars in lost revenue as a result of the dispute” can therefore be assumed. These are also users who played the game but were no longer able to play because of the lock. If he also considered potential new players who never had the chance to experience Fortnite, the loss could even be a billion dollars or more.

The Investors Behind

When asked if the costly and lengthy litigation was worth it, Sweeney replies: “I think freedom can’t be bought too dearly.” Investors also primarily supported Epic during this period, Sweeney explains. Only one investor withdrew during this phase. The CEO sees this as confirmation of the course taken to further develop Fortnite from a game to a complete digital ecosystem. The remaining investors had recognized that Apple profits massively from the work of other developers and can therefore generate high profits.

Despite the victory, not the end of the song.

The legal dispute between Epic and Apple has been characterized by ups and downs over the long term. After Fortnite was removed from the App Store, Epic, aside from some respectable small successes, initially had to accept several setbacks. However, earlier this month, the company was able to score a major success: Apple will require Epic and other developers to allow fees for in-app purchases in the future and will remove all fees for out-of-app purchases, which were previously 27%. The previous 30% fee is not affected by the ruling on in-app purchases, and Apple can continue to apply it. Apple announced an appeal immediately after the ruling, but Epic, on the other hand, promised new payment systems and services that would allow developers to bypass large portions of the fees. Particularly explosive: In the ruling, Apple’s CFO Alex Roman is accused of lying under oath in several places.

Fortnite Returns to the App Store

Sweeney is optimistic that Fortnite will return to the App Store in the coming days. According to his statement, the subsidiary Epic Games Sweden opened a developer account a long time ago, through which Fortnite was to be offered in the EU, through which the game could also be offered in the US. Apple has been away for too long. Sweeney also points out that this contact with the responsible Apple developer relations team has been “very friendly” so far.

Later this year, Epic also plans to introduce online stores within its own storefront. These should allow developers to create virtual storefronts where they can offer their products. This service is expected to be free for small developers earning less than $1 million per year and for the app. However, larger developers should expect a 12% fee.

Topics: Apple
Epic Games Fortnite Gaming Economy Source: Business Insider