Epic Games Inc. is set to unveil a new mobile gaming platform, marking a significant development after a prolonged legal dispute with tech behemoths Apple Inc. and Alphabet Inc.’s Google regarding their app store policies.
Tim Sweeney, the CEO of Epic Games, anticipates that the mobile iterations of their hit games, including Fortnite, Rocket League, and Fall Guys, will captivate a global audience on Android and cater to iOS users within the European Union.
The company has set an ambitious target to secure 100 million new mobile installations by year’s end, aiming to tap into the mobile segment that accounts for half of the $188-billion gaming industry.
During a press briefing, Sweeney acknowledged formidable hurdles, particularly highlighting the cumbersome installation process for iOS users, which he believes is intentionally designed to deter them. “After navigating through the 15 onerous steps to install the store on your iOS device, the experience is quite seamless,” he commented on the user journey.
Epic Games has invested “hundreds of millions of dollars” in its fight against Apple and Google’s app store practices, according to Sweeney. These tech giants impose up to a 30% commission on sales and create barriers for users to download apps from competing stores.
Sweeney stands by the costly battle, asserting that it’s a price worth paying for autonomy and arguing that the gaming industry is currently stifled due to the lack of open competition among app stores.
In response, an Apple representative clarified that installing an alternative app store requires only 5 steps, not 15. The spokesperson also mentioned that the EU’s Digital Markets Act necessitated new developer capabilities, which Apple has strived to implement in a user-friendly manner while safeguarding privacy and security.
Sweeney revealed that Epic Games potentially forfeited up to $1 billion in revenue when Fortnite was ousted from the App Store. This occurred after Epic Games attempted to bypass Apple’s 30% fee by introducing its own payment system in 2020.
While Epic Games triumphed in an antitrust lawsuit against Google, it largely lost its legal battle with Apple. The gaming company plans to levy a 12% fee on mobile transactions processed through its platform, mirroring the fee structure of its existing PC and Mac stores. Recent regulatory changes in the EU are gradually liberalizing the app store ecosystem.
Steve Allison, head of the Epic Games store, conveyed that other gaming companies are apprehensive about the ‘friction’—the hassle involved in completing transactions—especially with recent actions by Apple. “We are optimistic that we’ll eventually eliminate these obstacles,” Allison stated, “but it’s uncertain whether it will take two months, two years, or longer.”
Mobile gaming, previously the industry’s fastest-growing sector, has seen a decline, with worldwide downloads dropping by 6% year-over-year in the second quarter, hitting the lowest point since pre-pandemic times, as reported by SensorTower in August.
Despite these challenges, game developers are keen on bypassing the fees imposed by Apple and Google by using alternative platforms. Microsoft Corp. is developing its own web-based mobile store, which will offer discounts on in-game purchases for titles like Candy Crush.
Epic is also collaborating with third-party mobile app stores such as AltStore to launch its games on mobile devices. To attract mobile gamers, Epic will rotate a selection of free games, a strategy already employed in the Epic Games Store.
Sweeney mentioned that Epic Games has no intention of adopting a subscription model for its games. “We don’t require Game Pass,” he said, referring to Microsoft’s service. “We don’t need subscribers. Our goal is to draw users in and convert them into long-term customers.”
According to Sweeney, offering free games is a more cost-effective user acquisition strategy than advertising on social media, and it has led to a boost in game sales for developers.
In December, the Epic Games Store is set to open its doors to third-party game creators. Looking ahead to early 2025, Epic Games aims to grant iOS and Android users access to its self-publishing tools.
