Recent reports say that the Epic Games Store cannot be profitable right now, even at a loss until 2027.
From new documents about Epic Games and Apple, experts say that the decline in revenue of the Epic Games Store is real. This game store business will not be profitable for a long time and will only start to make a minimum profit from 2025.
Documents at the end of November show Epic Games Store General Manager Stephen Allison (Steve Allison) expressing his concern about the game store’s loss of business. This number could reach nearly 1 billion USD by 2027.
The company only raised its forecast for 2021 losses that could range from $547 million to $574 million. Through 2024, Epic Games is expected to reduce its estimated game store earnings by:
2022 – from $774 million to $658 million; 2023 – from $1.004 billion to $748 million; 2024 – from 1.177 billion USD to 838 million USD
According to the document, the Epic Games Store’s total revenue from 2019 to 2027 could be $4.362 billion. At the same time, the store will start to become profitable only from 2025, according to the documents of the experts published. Until then, EGS will remain unprofitable except in 2023 – when it is expected to collect a small profit of $16 million.
Also according to the report, the company recorded a sharp decline in new transactions with developers and publishers. These are the minimum guaranteed payouts companies are entitled to for the temporary Epic Games Store exclusivity.
The document notes that as of June 2020, more than half of the games with the Epic Games logo have been released. This indicates that the company started to sign significantly fewer exclusive deals since Q3 2019. The exact reason for this slowdown was not disclosed.
Contrary to the concerns of observers, the Epic Games Store executive or Epic Games CEO Tim Sweeney himself expressed optimism when saying the loss of the game store in the early stages was a “great investment”. According to him, the chosen development plan will bring results in the long run, not profit from the beginning.