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Monday, May 17, 2021

Epic spent at the least $11.6 million on free video games and gained 5 million new customers in return

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A brand new doc launched as a part of Epic’s legal battle with Apple has revealed how a lot Epic paid builders to offer away their video games totally free following the launch of the Epic Video games Retailer in December 2018. The doc, which was spotted by writer Simon Carless, covers the 38 video games given away free between December and September the next yr. We already know that Epic is spending millions on its giveaways, however the brand 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 payment to every developer to offer away their video games, fairly than paying per obtain. Over the interval lined by the doc, Epic paid over $11.6 million in whole for the video games. In response to the offers, virtually 5 million new customers signed as much as the shop, which interprets to Epic paying $2.37 for every new person it signed up on this interval. That’s cash which the corporate would theoretically make again if every new person went on to purchase only one $20 sport, primarily based on the 12 % fee Epic takes on new purchases.

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A desk displaying how a lot Epic paid for every free sport.
Picture: Epic Video games

Past the ten months lined within the desk, Epic says it’s acquired a complete of 18.5 million new customers by way of free sport giveaways, and that round 7 % of them, or about 1.3 million individuals, go on to make a purchase order.

A abstract of what number of whole customers Epic’s giveaways have attracted.
Picture: Epic Video games

There’s an enormous quantity of variance between how a lot Epic paid for every giveaway. On the high finish is the $1.5 million it paid to give 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 Social gathering Pack ($60,000), and Fez ($75,000).

At solely 38 titles, the record covers lower than half of the 100+ games Epic has given away on its retailer since its launch. It additionally doesn’t cowl one in every of Epic’s largest giveaways from Might 2020 when it made GTA5 free on its retailer. Rockstar’s title proved so fashionable that the shop was knocked offline for several hours as everybody tried to say their free copy.

In addition to paying to offer away current video games totally free, Epic has additionally paid for upcoming video 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 brand new numbers have been made public as a part of Epic’s legal battle with Apple. The Fortnite developer is accusing Apple’s App Retailer of being a monopoly, and takes subject with the 30 % fee Apple fees on many in-app purchases. With the court docket trial having kicked off this week, count on extra of the inside workings of every firm to be made public within the days forward.

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