- Apple fired Fortnite outside the App Store last month after Epic Games allowed users to make direct payments for in-game transactions.
- Some have estimated it Fortnite’s Removal from the App Store could end up costing Epic Games an average of $ 26 million in lost revenue per month.
- Apple today filed a counterclaim against Epic Games alleging breach of contract. Apple also claims that it has been hurt by lost revenue as a result of Epic circumventing Apple’s 30% cut in in-app transactions.
When Epic Games decided to incorporate a direct payment option into the iOS version of Fortnite last month it knew exactly what it was doing. Playing straight into Epic̵
In recent weeks, Apple and Epic Games have tried in court due to a number of issues. Most recently, Epic requested a preliminary injunction in an attempt to keep Fortnite in the App Store while the case goes through the court system.
Given the huge popularity of Fortnite, it’s no secret that removing the app costs Epic Games a lot in terms of both revenue and daily active users. Epic itself touched on this in its recent archiving and noted the following:
Daily active users on iOS have dropped by over 60% since Fortnite’s removal from the App Store. And removal has already resulted in the loss of goodwill and irreparable damage to Epic’s reputation. The continued loss of Fortnite as a gathering place for users on all platforms will lead to Epic’s customers becoming defective. Epic may never see these users again.
In the case of a specific dollar amount, a report from Buy shares estimates that Epic Games will lose around $ 26 million in average monthly revenue due to the ongoing legal solution with Apple:
Between January and August this year, Epic Games’ highest revenue from the App Store was estimated at $ 191.42 million, compared to $ 101.48 million from Google Play. Based on data from Sensor Tower, we have determined that the App Store accounts for 65.46% of all in-app purchases globally in the first half of 2020. Our estimate therefore filtered the cumulative revenue for Fortnite on Google Play and the Apple App Store using our findings . at 65.46% when comparing Google Play and App Store revenue.
Merging issues are that Epic Games today was hit with a counterattack from Apple. The lawsuit alleges that Apple has suffered damages as a result of users being able to bypass Apple’s in-app payment system and pay Epic directly for microtransactions.
“Epic’s lawsuit is nothing more than a fundamental dispute over money,” Apple’s suit reads in part. “Even though Epic presents itself as a modern company Robin Hood, it is in fact a multi-billion dollar business that simply will not pay anything for the enormous value it receives from the App Store.”
“For years,” the suit adds, “Epic took advantage of everything the App Store had to offer. It took advantage of the tools, technology, software, marketing opportunities and customer reach provided by Apple to bring games that Infinity Blade and Fortnite to Apple customers worldwide. It enjoyed the enormous resources that Apple has in the App Store to continuously innovate and create new opportunities for developers and experiences for customers, as well as to review and approve all apps, and keep the App Store safe and secure for both customers and developers. ”
Apple claims that Epic Games is violating its iOS developer contract and asked the court for a permanent order that would prevent Epic from accepting payments from users directly.