Epic spent at least $11.6 million on free games and gained 5 million new users in return
A new doc launched as a part of Epic’s authorized battle with Apple has revealed how a lot Epic paid builders to provide away their games for free following the launch of the Epic Games Retailer in December 2018. The doc, which was (*5*), covers the 38 games given away free between December and September the next 12 months. We already know that Epic is spending hundreds of thousands on its giveaways, however the new doc reveals how a lot that interprets to on a per-game foundation.
Epic CEO Tim Sweeney previously revealed that the corporate pays a flat price to every developer to provide away their games, relatively than paying per obtain. Over the interval lined by the doc, Epic paid over $11.6 million in whole for the games. In response to the offers, virtually 5 million new users signed as much as the shop, which interprets to Epic paying $2.37 for every new consumer it signed up in this era. That’s cash which the corporate would theoretically make again if every new consumer went on to purchase only one $20 sport, based mostly on the 12 % fee Epic takes on new purchases.
Past the ten months lined in the desk, Epic says it’s acquired a complete of 18.5 million new users through free sport giveaways, and that round 7 % of them, or about 1.3 million folks, go on to make a purchase order.
There’s an enormous quantity of variance between how a lot Epic paid for every giveaway. On the prime finish is the $1.5 million it paid to provide away the Batman Arkham trilogy games, however it additionally paid substantial quantities for Subnautica ($1.4 million) and Mutant Yr Zero ($1 million). Compared, the corporate paid a lot much less for indie titles like Tremendous Meat Boy ($50,000), Jackbox Get together Pack ($60,000), and Fez ($75,000).
At solely 38 titles, the checklist covers lower than half of the 100+ games Epic has given away on its retailer since its launch. It additionally doesn’t cowl certainly one of Epic’s greatest giveaways from Might 2020 when it made GTA5 free on its retailer. Rockstar’s title proved so widespread that the shop was knocked offline for a number of hours as everybody tried to say their free copy.
In addition to paying to provide away current games for free, Epic has additionally paid for upcoming games to be launched completely on its retailer. One other doc launched as a part of the authorized proceedings and found by Carless reveals that Epic paid a $146 million advance for a deal that included Borderlands 3 exclusivity.
The new numbers had been made public as a part of Epic’s authorized battle with Apple. The Fortnite developer is accusing Apple’s App Retailer of being a monopoly, and takes subject with the 30 % fee Apple expenses on many in-app purchases. With the courtroom trial having kicked off this week, anticipate extra of the inside workings of every firm to be made public in the times forward.
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