Amid its recent legal victory against Apple, Epic Games has decided to expand its competitive strategy by significantly reducing developer fees on its platform and introducing a new feature for developers. This move could alter dynamics within the game distribution world. Smaller game developers, in particular, stand to benefit from these changes, which come after Epic battled with Apple over in-app purchase commissions for several years.
Epic’s previous clashes with Apple primarily focused on the hefty 30% commission fee for in-app purchases on the Apple Store, which Epic bypassed in Fortnite. This dispute erupted into a long legal battle, one that Epic initially seemed to have lost. However, recent rulings have shifted the landscape, allowing developers to circumvent Apple’s fees by using external payment links. This change represents a continued effort by Epic to establish a more favorable ecosystem for developers compared to rivals like Steam and Apple.
What Changes Did Epic Games Announce?
Epic Games announced that it will not take any commission on the first $1 million in revenue earned by each app per year, after which its usual 12% fee will apply. This shift is stark against competitors like Steam, which still charges up to 30% on initial earnings. Additionally, Epic will enable developers to create bespoke “webshops” on the Epic Games Store platform. These webshops are designed to facilitate out-of-app purchases, which can avoid the usual platform commission fees, offering a more cost-effective option for both developers and consumers.
How Do Webshops Benefit Developers?
The new webshops will allow developers to engage directly with their customers and conduct transactions outside of the strict confines and fees imposed by app stores like Apple’s and Google’s. This feature grants them more autonomy and potential revenue without the burden of high fees from dominant market players. Epic cited that these webshops could be seamlessly integrated, even on platforms like iOS in Europe and the U.S., sidestepping previously enforceable financial barriers.
When Will These Changes Be Implemented?
These developments are scheduled to be available to developers starting in June. Epic is also offering an additional incentive: purchases made through these webshops will reward buyers with 5% in Epic Rewards, adding another layer of appeal. While this figure may initially seem minor, it provides an extra gain compared to making no reward-based purchases at all, thus encouraging engagement with Epic’s marketplace offerings.
The adjustments Epic Games is implementing serve as strategic incentives to reshape the competitive landscape, providing alternatives to longstanding industry standards set by frontrunners such as Steam and Apple. These actions may influence upcoming business models and decisions within the gaming industry, highlighting Epic’s continual push towards a developer-friendly ecosystem. By aligning their interests more closely with developers, Epic aims to foster growth and innovation in the digital content market.
