New figures show: Steam competitor is bleeding money

Epic Games Store is the computer game store that gives away free games every week and has managed to get a number of exclusive titles in an attempt to take on Valve’s dominant store Steam.

Of course, this costs money, and now documents that have been published as part of the lawsuit between Apple and Epic reveal what kind of sums are involved, reports Eurogamer.

In 2020 alone, Epic has set aside the equivalent of SEK 3.8 billion in guaranteed payments to game developers. It works much like with guarantee fees in the publishing industry, which gives authors a guaranteed income from published books.

In total, players spent SEK 6 billion in the store in 2020, but only SEK 2.3 billion was on third-party games and the store went back just under SEK 1.6 billion. And so it will continue: Epic estimates that the store will lose around SEK 1.2 billion in 2021. This includes at least SEK 2.8 billion in guaranteed payments for games that have sold worse than expected.

According to the documents, Epic does not expect the store to make a profit until 2027 at the earliest, and the company must therefore continue to pump in money from its other operations.