Epic Store losing money like crazy - over $400 million dollars lost so far

[Brian9824]

https://www.pcgamer.com/epic-games-store-exclusives-apple-lawsuit/

They have lost over 450 million dollars so far, with the trend showing no signs of stopping and have already forecasted losses of at least 139 million dollars for this year.

That is what happens when you have to bribe people to use your store and have nothing that actually draws people to it.

**Edit**
They have actually lost FAR more then $400 million, the numbers being reported for sales are not actually revenue

third-party game sales only accounted for $265 million of that spending.

Money spent on the store is not what epic gets to keep, they only keep at MOST 12% of that, and less with coupons so at most they got $32 million in revenue from that in 2020 which is nothing compared to money spend

[Brian9824]

Start_Running eredeti hozzászólása:

brian9824 eredeti hozzászólása:

Yeah I mean if you want to call it something other then revenue that's fine. You ask the average person and they will think that if Epic reported $265 million dollars in store sales that it means they are collecting $265 million, not that they are only collecting 12% of that. Hence why its designed to be misleading.

Person A: I made $1000 today!
Person B: An how much did you spend making it?
Person A: $950

But when you're acompany with shareholders, etc you have to bolster perception.

Well in this case its more like

Person A: I made $1000 today!
Person B: An how much did you spend making it?
Person A: $12000

[Brian9824]

Fred Durst eredeti hozzászólása:

brian9824 eredeti hozzászólása:

Guess we will just agree to disagree, either way you look at it though the numbers are misleading because the average person reading that will think that Epic is actually collecting that $265 million when in fact they are collecting only 12% of it. Especially as they are using it context of how much they are paying so in reality they are paying more then 10x what they collect for exclusives/freebies.

I understand what you are saying, but it's just how financial reporting works.

If Epic sells a game on their store for $30, they must report $30 as revenue. They don't sell the game for $30 and then only report 12% of the sale, it just doesn't work that way for a variety of reasons. You don't have to understand why it works that way, it just does. It's because there's a lot of other numbers involved, and these pesky things we call laws.

It gets even more scummy when they report those numbers as money spent on the store, but for instance exclude all the free coupons they gave away. So someone buying a $20 game and using a $10 coupon they are counting it as $20 sale, when its actually $10.

So again, its designed to mislead people and paint a rosier picture. It would have just been easy to post their net sales for instance, but that would be a negative number which they don't want to do.

There is nothing illegal about posting it that way, just like there was nothing illegal about how Microsoft or 2k did it, but its 100% designed to trick people and they were called out for it because of it.

[Start_Running]

MADWACZ eredeti hozzászólása:

I wonder why they want to lose money for Project Liberty, agenda swinery ask me. Worries people are so bambolised being so ignorant.

Its a gamble to basically gain market share by manipulating the perception of the market. Basically. Paint everyone else as 'The Bad Guys' and yourself as the 'Scrappy under dog good guys here to shake things up.'.

But the fact that they had a worse service, and their promises never panned out,...I mean gamers learned quickly enough that the lower store cut just meant more dev profit, not lower prices .

Then there's the exclusives.

[Brian9824]

Start_Running eredeti hozzászólása:

MADWACZ eredeti hozzászólása:

I wonder why they want to lose money for Project Liberty, agenda swinery ask me. Worries people are so bambolised being so ignorant.

Its a gamble to basically gain market share by manipulating the perception of the market. Basically. Paint everyone else as 'The Bad Guys' and yourself as the 'Scrappy under dog good guys here to shake things up.'.

But the fact that they had a worse service, and their promises never panned out,...I mean gamers learned quickly enough that the lower store cut just meant more dev profit, not lower prices .

Then there's the exclusives.

It's also in part Fortnite has been flagging with its playerbase dropping and this debate brings a lot of attention to their game. They were probably expecting to be able to get a judge to side with them and have it added back to the apple store while the litigation was pending but that was shot down as the judges basically chastised Epic for creating the issue, then running to them to fix it when they had the power to remove the cash shop themselves and resolve their issue.

[Start_Running]

Didn't help that no one really took their bait.
Yeah Fortnite is fortnite, something they kinda stole to begin with.. But yueah Fortnite will flag, I mean paying for all those new skins and likenesses isn't gonna keep going for ever.

[device]

"Hmm yes, we SHOULD make GTA 5 free! It won't bite us in the *** when everybody swoops in and takes every last copy we have leaving us empty and at the mercy of people who already bought it for $40!" -Their CEO, probably.

[Nomad]

Shareholders don't care about the details. If a company is putting out misleading numbers, it doesn't matter cause as long as the value of the shares goes up, that's all they care about.

[Brian9824]

TRASH eredeti hozzászólása:

Shareholders don't care about the details. If a company is putting out misleading numbers, it doesn't matter cause as long as the value of the shares goes up, that's all they care about.

No but they care about making a profit, and if they feel the business plan that is in place won't be profitable in the long run they will make their feelings vocal.

[♥Peachboy♥]

Epic Games will live because of Fortnite.

I hate Fortnite.

[Sir Dookface McFerretballs]

Medisoran eredeti hozzászólása:

Epic Games will live because of Fortnite.

I hate Fortnite.

Until the next "trendy" game comes out and everyone jumps ship to whatever that will be.

Then we will see stories like "Epic games bought up by EA after filing for bankruptcy".

[♥Peachboy♥]

Sir Dookface McFerretballs eredeti hozzászólása:

Medisoran eredeti hozzászólása:

Epic Games will live because of Fortnite.

I hate Fortnite.

Until the next "trendy" game comes out and everyone jumps ship to whatever that will be.

Then we will see stories like "Epic games bought up by EA after filing for bankruptcy".

[Nomad]

brian9824 eredeti hozzászólása:

TRASH eredeti hozzászólása:

Shareholders don't care about the details. If a company is putting out misleading numbers, it doesn't matter cause as long as the value of the shares goes up, that's all they care about.

No but they care about making a profit, and if they feel the business plan that is in place won't be profitable in the long run they will make their feelings vocal.

That's basically what I just said. Their profit is in the shares. It's all a big confidence scam. Only instead of wearing a rented armani suit and driving a rented porsche. I'm selling you a share for 1.56, knowing it is only worth 1,46. But you're also selling it to people with tons of money who do the same thing so they don't care. You're literally just selling your scam to another scammer.

[Incarnate]

Start_Running eredeti hozzászólása:

MADWACZ eredeti hozzászólása:

I wonder why they want to lose money for Project Liberty, agenda swinery ask me. Worries people are so bambolised being so ignorant.

Its a gamble to basically gain market share by manipulating the perception of the market. Basically. Paint everyone else as 'The Bad Guys' and yourself as the 'Scrappy under dog good guys here to shake things up.'.

But the fact that they had a worse service, and their promises never panned out,...I mean gamers learned quickly enough that the lower store cut just meant more dev profit, not lower prices .

Then there's the exclusives.

This is the important part. The prices never were good enough to support using Epic. They were just as scummy as Steam but offered nothing more appealing.

You had free games, but that's it. And who cares about year-long exclusivity deals when games are all buggy messes for the first six months anyway? All they did is piss off Steam users.

[Vox]

UnityAngel eredeti hozzászólása:

start to donation to epic games
it is time to give them back something , we took a lot free games

let's make a watssup group or discord group for donations for epic games

They could put this at the top of the epic website.

Please Read:
A personal appeal from Epic games CEO Tim Sweeney

[↑↑↓↓←→←→BASelect]

Should we take up a donation collection for them?

NAAAAAAAAA.