Tue, 4 May 2021

Epic Games spent above $11Million in giveaways

Epic Games spent above $11Million in giveaways

A document that was recently released as an exhibit in the Apple v/s Epic lawsuit that revealed a figure of $11.6 million dollars was spent on free games and giveaways in the first nine month of the operation that lasted between December 2018 and September 2019

Simon Carles, the founder of GameDiscocverCo tweeted an image explaining the document in question was one of the documents that were released prematurely. They weren't supposed to be made public until later but due to some human error these documents made their way into the Epic's documents that were supposed to be released. Every document was then removed from the archive but were restored again after a while.

The complete document paints an interesting picture of Epic Store's timescale and reveals a huge different in value paid for various games in order to make them free. Games like The End is Nigh by Edmund McMillen earned $200,000 while Annapurna's What Remains of Edith Finch drew just about $125,000, Limbo was made free for $350,000 and $800,000 for Inside while Alan Wake only earned $150,000.

The top earners were the Batman: Arkham trilogy which costed Epic$1.5Million, $1.4Million on Subnautica and the best buy for Epic was the Metro 2033 Redux which was freely provided to them by Deep Silver. 

Regardless of the amount spent on these various giveaways, the impact was bare minimal. The document indicates around 7% of Epic Game Store users who acquired the free games never made an in-game purchase through the microtransactions which doesn't sound like much great of a conversion rate.

CEO Tim Sweeney said "Epic Store isn't currently profitable because "it has front-loaded its marketing and user acquisition costs to gain market share." He doesn't expect Epic to start earning money until 2027.