Did Epic Games think carefully about the dispute with Apple? An analyst explains that Epic now earns more than $26 million less per month because Fortnite has been removed from Apple’s App Store.
What is it about? Epic Games did not want to give 30% of the revenues from V-Bucks sales in the online shooter Fortnite to Apple when customers purchased this in-game currency through the iOS version of the game. So Epic offered the direct and cheaper purchase of V-Bucks.
As a result, Apple removed Fortnite from the App Store. In the ensuing dispute, even Epic Games’ developer accounts were suspended, which had serious consequences for all studios using the Unreal Engine. A court determined that while this suspension had to be lifted, Fortnite could remain excluded from the App Store.
Apple even offered Epic Games to reinstate the game in the store if all V-Buck purchases again go through the iOS version. But Epic did not accept this. Instead, the company asked the presiding judge Yvonne Gonzales Rodriguez Rogers to compel Apple to lift the ban on Fortnite. What will happen from this is still unknown.
In the meantime, Apple has filed a counterclaim.
Epic is losing a lot of money!
What are the implications of the Fortnite ban for Epic Games? According to an analyst from the financial company Buy Shares, Epic is currently losing $26.7 million in revenue per month. Revenues from the game Fortnite on Android and iOS are reported to have decreased by 63.23% in July and August of this year.
These figures are based on the current revenues of Epic Games.
How important is Apple’s App Store for Epic? According to the analyst, the revenue from Fortnite through Apple’s App Store was $191.42 million between January and August 2020.
In comparison, the company earned $101.48 million through the Google Play Store during the same period. Here, too, revenues have significantly decreased by nearly $15 million per month.
Nevertheless, Apple’s App Store remains the more important source of revenue, as revenues from the iOS version of Fortnite are nearly double those of the Android version.
According to the analyst, this could have catastrophic consequences for the future of Epic Games. No wonder the company wants to have the game available again as soon as possible.
What are the consequences for Apple? Of course, Apple also suffers from the loss of Fortnite as a product in the App Store. After all, the online shooter represents a huge source of revenue for the company.
For this reason, Apple offered Epic Games to lift the ban on Fortnite. However, Epic must then comply with the rules and V-Bucks for the iOS version must not be offered externally through Epic Games.
It is a tricky situation under which both companies are suffering financially. And the longer the legal dispute drags on, the greater the losses.
Do you want to read more about the dispute between Apple and Epic Games? Then check out this article: This is behind Fortnite 1984, the attack on Apple and #FreeFortnite.
