After scoring a major court victory against Apple earlier this week, Epic Games has announced some upcoming changes to the Epic Games Store aimed at attracting more developers to the platform, while also slightly provoking Apple in the process.
The first change is a reduction in the percentage Epic takes from developer revenue on its store platform. Epic currently takes a 12% cut of sales on its store platform, which is significantly lower than most other platforms: Steam, for example, takes a 30% cut of the first $10 million in developer revenue, 25% on anything over $10 million, and 20% on anything over $50 million. Under the new plan, Epic will not charge a share of the first $1 million in revenue per application per year, and will then take a regular 12% share.
This means a lot to smaller independent developers. In 2018, Valve drew some criticism when it adjusted its revenue-sharing model because it clearly favored large publishers and hugely successful games; Epic's changes, on the other hand, benefited developers of games that weren't hugely successful.
In addition to adjusting the revenue sharing ratio, Epic will also add a new feature that allows developers to open their own "online stores" on the Epic Games Store. So why would developers want to do this?
Epic said: "These outlets can provide players with out-of-app purchase options, which is a more cost-effective alternative to in-app purchases, where Apple, Google, and some other platforms charge exorbitant fees. With the new legal ruling, developers will be able to direct players from games to outlets to make digital purchases on any permitted platform, including on iOS platforms in the EU and the United States."
The issue of in-app purchases was at the center of Epic's legal battle with Apple five years ago: Epic decided not to pay Apple its 30% cut on Fortnite purchases and added its own payment processing options to the Fortnite app, and Apple's reaction was entirely predictable.
Epic lost that lawsuit, but after five years and some unexpected twists, it finally won a compromise: Apple has been explicitly told that it can't prevent iOS app developers from linking to web payment forms outside of their apps, or charging commissions on those out-of-app purchases. Now, Epic has opened the door for all developers to sell their products without paying Apple's high fees.
To further add to the appeal, any purchase made through Epic's locations will earn 5% Epic Rewards points, which can be used toward other purchases on the Epic Store. It's not a huge amount, but if you're planning on buying a lot of stuff and the choice is to get 5% or nothing, well, that's obviously an easy choice to make in my opinion.
Epic’s updated revenue sharing model and outlet features will be officially launched sometime in June.