According to the filling, Epic has lost around $181 million & $273 million on EGS in 2019 and 2020, respectively.
Who would have thought that giving games away for free would be so lucrative?
Microsoft Chief Executive Officer Satya Nadella shared a bullish report on the performance of the Xbox gaming business also on PlayStation.
I'm kind of hoping they drop most hardware support here with a 'good enough console' next generation and focus more on being a publisher. Obviously that is doing well for them and they can still push cloud gaming since it's going to tons of smart TVS and devices. They're now the largest video game publisher in the world, if they aren't doing the most sales and pre-orders, then they would be in trouble. They aren't.
They're gonna try again with a new gen console. If they want to compete they need to actually be competive. Say games like Halo, Blade Elder Scrolls or whatever big game it is. Needs to only be on Xbox and PC. If those games go multiplat it needs to be after a few years or at least a year later definitely not 6 months as a good portion of ppl will wait. Knowing MS they'll probably try and compete, then when things don't go there way they pivot and change the metrics again.
I don't think you're reading the tea leaves here. Leadership hasn't used the word "exclusive" in quite a while, and they're now boasting about PS sales. They're probably done with consoles and exclusive at this point.
I don't think they'll try. They have been beating a dead horse for so long now and they have finally realized it isn't going nowhere.
MS is going to drop being hardware exclusive, they are going publisher and subscription. You will be able to buy a Xbox, but you will be able to play on any platform, that's their new goal. After the hit with Oblivion remastered and major sales on PS5, no more Xbox/PC exclusives long term..
I think with the latest price hike on their console, they’re well on their way to axing hardware.
Hardware axing entirely is bad news. They've sold most of their hardware on the Series S this generation. I think if they capture a lower hardware market that can still buy games (especially on sale), they'll actually hit a good market considering how the economy is going. Especially in the U.S. People are going to want to keep gaming and streaming isn't that good for online gaming at all.
@crazy they've stated multiple times they're going another gen. The next gen Controller even got leaked.
Tired of repeating myself whenever it comes to this subject of Xbox having another gen.
Xbox consoles are done, all we gonna get is some branded 3rd party shite at best, ms aint interested in being a console manufacturer no more, this much is obvious.
Microsoft has too much money for that. They are rumored to release a PC/console hybrid in 2026. They will push all you hope as a publisher while having new hardware next year, so the games will appear on their platform and every other platform which is good to me if the goal is to sell software. If that is where the money is why would anyone fault MS for that? The prices are going to be insane for the next PlayStation and console from Microsoft, though, but it is what they voted for, so this is what we got.
I think they have to at this point I'm sure they are developing new hardware because they still have to team on payroll but it's absolutely a hail mary play.
They want to try and shift the console to be more like a PC so development costs are drastically reduced you don't need your trams to develop a Xbox version if the PC version will already run jon your console ust have it preconfigured with the graphical settings to make it seem less PC like and job done using uwp apps.
I can see it working for a few years but eventually there will be problems like with the series s as pc hardware typically ages out faster than console hardware I guess the jury's out on how it goes when your console is forced architecture will it still be a development target 5 years later will it slow PC hardware growth if games have to account for such weak hardware 7 years on
“We continue to transform the business and focus on margin expansion as we bring our games to over 500 million monthly active users across devices. We ended the quarter as the top publisher by pre-orders and pre-installs on both Xbox and PlayStation Store.”
Amazing news!
Xbox reigning within rival territory.
Big slap in the face of haters who used to crap on Xbox´s games and its quality.
One minute he says that they will NEVER go third party
Now he's all for it like this was Microsofts grand master plan all along.
@-Foxtrot
"One minute he says that they will NEVER go third party"
Fact.
"Now he's all for it like this was Microsofts grand master plan all along."
False.
Never said it was Microsoft´s master plan all along. But it is REALLY working for us, as the fact that you´ll be able to enjoy Xbox gamers isn´t killing us. Rather the contrary, we are happy that everybody is funding our games on Gamepass.
Specially now with the imminent new $80 price tag for Xbox first party games.
It is what it is.
So xbox division can't afford to fund new xbox games on GP subscribers alone?
ooooh your in trouble imma tell papa phil and he's gonna take away your xbox card
He loves it. Now he gets to support the trillion dollar company even more by giving them more of his money.
I agree.. great news for Microsoft and tbe xbox brand. Your Playstation is now a xbox. Microsoft wasn't kidding around when they said xbox will be everywhere. Now they are laughing all the way to the bank. Imo sony needs to do similar things. They're putting their biggest titles on PC. Might as well bring them over to other consoles too. They aren't making much on console sales.
Of course MS wants PlayStation owners, their is literally twice as many of them.
Theres been one game in the last few years that's been good. Indy. Long way to go before you start talking about their games and their quality
Xbox gamers really are the strangest demographic. Not so long ago you are all saying PlayStation isn't the competition Amazon is because Phil said so. You love to parrot what your corporate talking say. That wasn't actually true Xbox and PlayStation were in direct competition but because Xbox was losing so badly Phil had to act like they weren't.
Cut to present day and Xbox and PlayStation aren't competition because Xbox has no hardware presence it's zero. In fact Microsoft is now a third party publisher and they need PlayStation they don't need Xbox or Xbox gamers they need PlayStation gamers and PC gamers and mobile phone gamers and switch gamers.
You're here cheering for the fact you've become irrelevant because you think it's important that your uncle Phil is making money. You think PlayStation gamers are upset if Microsoft releases more good games in a year than sony does. when Microsoft makes a good game you shout take that playstation!
PlayStation gamers simply say thank you I will third party publisher that makes me games
I think you're confused. Microsoft never saw Sony as their biggest competitor. They've reiterated it for years. Sony is doing the same thing by putting their biggest franchises on PC, which is OK with Microsoft. Their will be more playstaion games coming to Microsoft ecosystems. Maybe not to xbox consoles but playstation won't be the only place you can play their games. Kind of how it is now. I would bet that they are making plans to do just that but they probably fear the backlash from their fanbase which is silly because noone is gonna stop playing games just because it's on on another platform.
"Cut to present day and Xbox and PlayStation aren't competition because Xbox has no hardware presence it's zero."
If that was remotely true you wouldn´t be so mad about Xbox gamers getting day one games on Gamepass that you have to pay full price for.
"PlayStation gamers simply say thank you I will third party publisher that makes me games"
And we´re thankful for Playstation gamers supporting Xbox games funding our day one games on Gamepass.
Like I said: Everybody wins.
We brought two of the biggest publishers in the world, cost thousands of people their livelihoods and consolidated a huge part of the industry, look how successful we are at gaming!
Top Secret Strategy for How to Become the Biggest Publisher in the World:
1. Buy everybody
And this has been standard business practice in every industry. Don't hate the player hate the game! lol
I have no doubt that the vast majority of developers and studios will be looking at Microsoft as far job security is a concern.
Microsoft will allow its studios to release their games to every single platform, which means more investment on new games, more money, more jobs positions, better payment, benefits and recognition among gamers worldwide.
You though MS would crash and burn
You want MS to leave gaming forever but GAMERS clearly wants otherwise.
You said MS doesn´t know how to make great games but Xbox games dominating sales on Playstation clearly says otherwise.
Now you also have Playstation gamers to blame for helping the rich to get richer.
I warned you. You were on a fool´s errand all the time.
Now all you can do is watch as MS and Xbox gaming grows bigger and better than ever and release games for everyone!
At the end of this road, Bethesda, Activision, etc, will still be releasing games for everyone and Xbox consoles will be no more.
If that's what you claim to have foreseen, then congratulations, you win.
You think three major publishers no longer competing and thousands fired to feed the piggies at MS is a good thing, I don't.
More and more owned by fewer and fewer is what you're cheering for, all that leads to is $80 first party games kid.
In a Game Rant interview, PM Studios CEO Michael Yum talks about his long career, his involvement in LvL Up Expo, and more.
Same thing Microsoft is doing with GamePass here. Utilizing profit-heavy elements to offset losses on investments in other business areas. Did anyone really expect them to be making tons of money with all the free games they throw out there? Obviously Fortnite is funding their foothold here.
Too bad Epic can't lose $10 million more to improve the store with features that have been on Steam (and GOG) for ages now.
Wow, didn't expect to see such high loses. But like everything, you have to pay to play, especially with the big boys.
That is a bit surprising. Because while it was pretty obvious that they weren't making money with third party sales - their last earning report point out to something close to 30M (before tax) in 2020 coming from third party games, that get even lower after factoring the 23M that Epic gave away in the form of coupons - anyone would assume that their own games would still be able to foot the bill. Given that they are more than 60% of the total store revenue and contrary to third party software EGS is not restricted to only 12% of their revenue.
But if this reports are to be believed. And look like they are. In 2020 alone the EGS costed almost 1B to run.
I stopped using EPIC because there was an error that wouldn't let me login for a month.
Giving games like GTA V for free is expensive.