Epic Games, victorious in its legal battle against Apple, declares reduced revenue sharing for developers utilizing its platform.
Fresh Take:
Victory Dance: Epic Takes On Apple With Store Updates
After winning a significant courtroom battle against Apple last week, Epic Games is flexing its muscles and making moves to tempt developers to join its platform, all while sticking a metaphorical finger in Apple's eye.
First up in the new arsenal is a reduced commission fee for the developers. Currently, Epic takes 12% of revenues from sales on its storefront - a figure significantly lower than most competitors. But starting from June 2025, developers will pay zero commission on the first million dollars in annual revenue per app. After that, Epic will take its standard 12% cut, contrasting starkly with Steam, which takes up to 30% on the first $10 million in revenues, decreasing after that [1][3][5].
On the front of smaller, indie developers, Epic is making a big statement. Valve drew heat for its revenue share formula in 2018, which clearly favored big publishers and major successes. Now, Epic's update, which offers a boost to games that aren't runaway hits, comes from the opposite direction [3].
Moreover, Epic is set to introduce a new feature - self-branded webshops on the Epic Games Store [3][5]. These shops will allow developers to sell their games directly, offering a less expensive alternative to the in-app purchase systems preferred by Apple, Google, and others [3]. As per the legal rulings in place, developers will be able to direct players from games to webshops on platforms like iOS in the EU and US, thereby sidestepping excessive fees [3][5].
If a developer decides to use Epic's webshops, they can expect a bonus of 5% in Epic Rewards on all purchases, which can be used towards other purchases on the Epic Store [5]. While it's not a huge amount, it gets you rewards if you're buying stuff anyway, right? [3]
The changes Epic has announced are set to go live sometime in June. While this may put pressure on Apple and Google to adapt, only time will tell if indie developers start flocking to the Epic Games Store in droves [3][5].
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Andy ChalkGame journalist extraordinaire, Andy first picked up a keyboard and mouse back in the 80s and he hasn't looked back since. specializing in the latest developments in the world of PC gaming, his career has seen him through the glory days of Sierra Online adventures and Microprose sims, and now he's with us, covering everything from big announcements to legal disputes and Henry Cavill (lots of Henry Cavill). Twitter: @andy_chalk
Enrichment Insights:
1. Impact on Apple/Other Platforms- The webshops directly challenge Apple’s 15-30% in-app purchase fees by offering a no-commission alternative (outside app stores) where legally permissible [3][5].- Epic's update explicitly framed as a response to what Epic calls "exorbitant fees" from dominant platforms [2][3].
2. Comparison of commission models
| Platform | Initial Revenue Fee | High-Revenue Fee | Key Feature ||---------------------|---------------------|-------------------|---------------------------------------|| Epic Games Store | 0% ($1M/app/year) | 12% post-$1M | Indie-focused webshops || Apple App Store | 15-30% | 15-30% | Mandatory in-app purchase system || Google Play Store | 15-30% | 15-30% | Similar policies to Apple || Steam | 30% | 20-25% | Tiered above $10M/$50M |
*Fee reductions available for select developers under specific programs, but not broadly applicable like Epic’s model[1][2][5].
3. Geographical Scope- Developers will be able to direct players from games to webshops on platforms like iOS in the EU and US [3][5].
- Epic Games, having recently won a courtroom battle against Apple, intends to challenge Apple's revenue methods by introducing a zero commission fee for developers on the first million dollars in annual revenue per app, starting from June 2025.
- This change represents a significant shift in the industry, contrasting with Steam's higher revenue cuts and potentially revolutionizing the business for small, indie developers.
- In a bid to further entice developers, Epic is planning to introduce self-branded webshops on its platform, which will allow developers to sell their games directly, bypassing in-app purchase systems and potentially reducing excessive fees.
- The new feature will also offer a 5% Epic Rewards bonus on all purchases, which can be redeemed for other purchases on the Epic Store.
- The updates and webshops are set to go live in June, likely putting pressure on Apple and Google to adapt their commission structures, although the impact on the industry remains to be seen.
- Epic's moves are a testament to their commitment to technology innovation and finance reform in the gaming business, emulating the spirit of classic gaming companies like Microprose.
- This epic battle between Epic Games and Apple is being closely observed by the gaming industry, with many waiting to see if indie developers will flock to Epic Games Store in pursuit of better revenue shares and a fairer business environment.
