A summary of the arguments that Apple will be bringing to court next month have been revealed. Apple has said that the Epic Game Store will “not be profitable for at least multiple years, if ever”.
Citing depositions from the Epic Game Store VP Steve Allision, and Epic VP of business development Joe Kreiner, Apple’s documentation says that Epic have lost £132million ($181million USD) on the Epic Game store in 2019. Apple says that the projected loss for 2020 is £199million ($273million USD), with a further loss of £101million ($139million USD) expected in 2021.
Apple also claims that the Epic Game Store will not be profitable before 2027, instead needing to recoup spent costs by money raised through other parts of its business which have been “incredibly profitable” referring to Fortnite, the game that is the root cause of the legal battle.
Epic have made their own filing in response, and citing Epic CEO Tim Sweeny, have said “EGS is not yet profitable at its current scale and stage of development because it has front-loaded its marketing and user acquisition costs to gain market share.”
The legal battle between the two software companies started back in August 2020, when Epic Games filed legal action against Apple after Fortnite was removed from the App Store, due to Epic allowing customers to bypass Apple when purchasing V-bucks, an in-game currency for Fortnite.
Since then Apple have terminated the Epic Games App Store account, removing Battle Breakers and the Infinity Blade series, whilst recent development in the case have seen the UK rule in favour of Apple by refusing to allow Epic Games to pursue a lawsuit against Apple in the UK.