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Epic Games lost almost $181 million & $273 million on EGS in 2019 and 2020, respectively

According to the filling, Epic has lost around $181 million & $273 million on EGS in 2019 and 2020, respectively.

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Christopher32d ago

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.

VenomUK32d ago (Edited 32d ago )

The losses are most likely to be from the expense of including the weekly free games and the great costs incurred from paying the developers. But it’s biting it with the hope of growing consumer loyalty so in the long run it can be profitable.

JustTheFax32d ago

It's pretty crazy, I have gotten over 100 free games from them and haven't spent a dime in their store. haha Thanks to all the Fortnite kids!

mudakoshaka32d ago

@JustTheFax

Hahaha, at first I thought your post was one of those spam posts that you see here all the time. You know, "I have earned $2000 in one week working from home".

Michiel198931d ago

@fax well you did sell your soul to the devil, divine punishment will come in time ;)

Terry_B31d ago

did not happen..won#t happen since too many of us are loyal to Steam and are just having egs accounts for the free games without buying anything there

+ Show (1) more replyLast reply 31d ago
Jin_Sakai32d ago

At least they will become profitable in a few years.

“New court documents reveal that the Epic Games Store is expected to be profitable by 2023 and has spent over $700 million in revenue share to developers.“

luckytrouble32d ago

I'd like to know where this sharp swing from big loss to profit is supposed to come from. I would imagine the expectation is that they'll dial back the free games and try to get those only there for the freebies to become actual customers, but my stance from the start has been that no strings attached free games won't build a customer base. With that in mind, I'd wager Epic has put themselves in a bad place to turn around the money bleeding EGS.

crazyCoconuts32d ago

@lucky, I agree, the big ticket free games had to hurt. There aren't as many of those today and I expect they'll continue to diminish. And I don't know how much the exclusives for a year costs them but I think they need to keep doing that to survive against Steam.

Rachel_Alucard32d ago

@lucky
They probably think that people will just start sticking to the service when they've given 0 incentive for anyone to do so. Free games and timed exclusivity and people still avoid them like the plague. If you read the suit, the way Epic speaks and talks they talk as if they expected Apple to just bend over when the lawsuit happened. They also expected a bunch of children to root for them online but nobody cared. This pompous out of touch ego is whats going to kill their store and leadership.

anubusgold32d ago

It makes me vomit every time i have to open epics stupid store.

RauLeCreuset31d ago

"Epic expects its store to turn a profit in 2023, though this sounds like an optimistic scenario."

Keywords, "Epic expects." This is based on an Epic court filing. It's going to steer more toward optimism than realism.

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agnosticgamer32d ago (Edited 32d ago )

Except Phil Spencer has stated GamePass is completely sustainable business as it stands. I’m not sure you can exactly lump that in as given it’s losing money.

waderae32d ago

Phil Spencer says a lot of things.

crazyCoconuts32d ago

"We’re definitely investing in it, but not investing in a way that’s unsustainable."
That's in no way saying it's profitable right now. If you read between the lines, he's actually saying the opposite. I'm sure they have a plan to make it profitable in the future, just like Epic does...

Rachel_Alucard32d ago

@crazycoconuts

It's crazy how twisted that statement is when PR falls back to fallacy statements. You can say anything, and then when people repeat it back later suddenly it's exactly what he wanted people to think without ever needing to lie about it.

DarthMarvin32d ago

All Phill Spencer does is flap his flip flapper.

agnosticgamer31d ago

So all you console warriors talking smack really can't point to any factual evidence. A sustainable business is not a business that is losing money.

But Spencer reassured listeners that the Xbox Games Pass is “completely sustainable” at its current cost, and there are no plans for a price increase anytime soon. “I say there’s no plan for us to do anything like that. We like the value that Game Pass is today and from a business model it’s completely sustainable the way it is and I mean that,” he said.

For a business model to be completely sustainable just the way it is... it cannot be bleeding money, because bleeding money is not sustainable. And I said you cannot automatically just lump it in as a business that loses money, none of you have presented any evidence that it is losing money as it currently stands... And that was my point.

Christopher31d ago

Being sustainable means they as a company can afford to pay for it. It in no way means it is making them any profit.

Terry_B31d ago

Why would anyone trust Phil Spencer?

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crazyCoconuts32d ago

They've got a long way to go to match Steam. And it's not like steam is standing still either...

Magog32d ago

Yes, I'm sure Microsoft's losses are even higher giving away more games for $1/mo.

agnosticgamer31d ago

@Magog,

Do you have the conversion rate of how many of those people flipped to a subscription? If you do please post them... I'm guessing you don't?

+ Show (2) more repliesLast reply 31d ago
rlow132d ago

Wow, didn't expect to see such high loses. But like everything, you have to pay to play, especially with the big boys.

Vits32d ago

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.

anast32d ago

I stopped using EPIC because there was an error that wouldn't let me login for a month.

phoenixwing32d ago

I have to say when it comes to pc gaming, steam is the only reliable storefront for me. I've had some issue or other on all the other platforms that stopped me from accessing games at some point. I'm not talking about consoles here.

anast32d ago

GoG has been solid for me. I have most of my games there with some Total War stuff on Steam, because I can't get them at GoG.

phoenixwing32d ago

Anast
Even gog messed up on me with an update making it so my baldurs gate 3 game wouldn't recognize for some reason and the cyberpunk 2077 pre order pre download glitched where it wouldn't unlock the game. Had to rebut both on steam. Everything else on gog works right now though that I downloaded

Tiqila31d ago (Edited 31d ago )

Never had a problem with GoG. Pre download of cyberpunk worked for me

With steam I had a couple of login errors, where a game wouldn't start and I couldn't launch steam manually. Worked after rebooting but still...

iwin8632d ago

Giving games like GTA V for free is expensive.

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