Epic Games Inc. is making waves by launching its own mobile gaming platform, marking a significant turn after its longstanding legal disputes with Apple Inc. and Google's parent company Alphabet Inc. over app store policies.
CEO Tim Sweeney is optimistic about the new mobile iterations of popular titles like Fortnite, Rocket League, and Fall Guys captivating audiences on both Android and iOS, particularly within the European Union.
The ambitious goal for Epic is to gather 100 million new mobile installations by the end of the year, aiming at the mobile gaming market which constitutes half of the $188-billion gaming industry.
During a press briefing, Sweeney mentioned considerable obstacles, especially the complex installation process for iOS users, asserting it feels intentionally cumbersome to deter users. "After nursing through the 15 arduous steps to install the store on your device, the experience is pretty smooth," he explained, addressing the user experience.
Epic Games has reportedly poured hundreds of millions of dollars fighting against what they say are stifling practices by Apple and Google. The tech giants impose commissions as high as 30% on sales and prevent downloading apps from competing stores.
Despite the heavy financial burden, Sweeney defends the costly battle as necessary for autonomy, arguing competition is lacking and hurting the gaming industry's growth. He pointed out how Epic potentially lost up to $1 billion when Fortnite was banned from the App Store after the company attempted to bypass Apple's fees through its own payment method back in 2020.
While Epic won some battles, it largely lost its fight against Apple but had success against Google. The new mobile platform will have a 12% fee on mobile transactions, reflecting the structure of its current PC and Mac stores.
Recent changes in EU regulations have started to open up the app store ecosystem, spurring other developers to find ways around the commissions imposed by Apple and Google.
Steve Allison, leading the Epic Games Store, mentioned other game companies are wary of the ‘friction’ associated with transaction processes, especially with Apple's recent actions. "We are hopeful to eventually smoothen these pathways, but the timeline remains uncertain—a few months, two years, who knows?” he stated.
Interestingly, mobile gaming, once the fastest-growing sector, has faced declines, with global downloads dropping by 6% year-over-year last quarter, marking the lowest levels since before the pandemic, according to SensorTower.
Despite these obstacles, developers are eager to minimize fees by exploring alternative platforms, with Microsoft aiming to create its own web-based mobile store offering discounted in-game purchases.
Epic is also exploring partnerships with other mobile app stores like AltStore to launch its games. To entice mobile players, Epic intends to rotate free games, resembling the strategy already applied within the Epic Games Store.
Sweeney clarified Epic won't adopt subscription models for their games. "We don’t need something like Game Pass; our aim is to engage users and turn them loyal consumers," he elaborated.
Offering free games is seen as a more budget-friendly user acquisition method compared to shelling out for social media ads, and it's been effective for increasing game sales for developers.
The Epic Games Store is set to allow third-party creators access by December, with plans to roll out self-publishing tools for iOS and Android users by early 2025.
Epic’s recent strides have been made possible largely due to the EU’s Digital Markets Act (DMA), which requires tech giants to modify practices to permit competition. A recent regulation update mandates Apple to permit multiple app stores on its devices, creating new opportunities for companies like Epic.
This move by Epic is being touted as the first serious competition Apple’s App Store has faced. The app store will initially launch with games developed by Epic, later bringing third-party games onboard starting December.
According to Max von Thun, Europe director at the Open Markets Institute, the Epic Games Store could take a significant share of Apple’s lucrative market.
Sweeney claims the arrival of this competitive store could repair the “largely broken” mobile gaming industry, stating, “The arrival of competition necessitates better pricing, features, promotions, and fewer advertisements.”
The launch reflects how the EU’s Digital Markets Act aims to drive competition and address the monopolistic tendencies of tech giants.
Andreas Schwab, European Parliament member and DMA co-drafter, noted, “The emergence of alternative app stores is proof this regulation can stimulate competition and, eventually, lower consumer prices.”
This is particularly poignant considering Apple’s App Store has been generating substantial income, reportedly reaching $1.1 trillion in sales as of 2022, becoming one of their primary income streams.
Developers have increasingly begun to oppose Apple, citing high commission fees and strict app management policies. The pandemic's challenges have only heightened frustrations over these policies, which restrict legitimate business avenues.
The legal skirmishes have seen Epic argue against Apple’s ecosystem policies, which restrict developers from including links to external payment methods. Epic faced unyielding resistance, prompting the company to press hard to change these long-held rules.
Epic's considerable losses underscore the financial risks taken amid their legal conflicts. The company has lost about $1 billion, combined with high legal expenses exceeding $74 million for litigation against Apple.
Through it all, Sweeney remains determined to reshape the app ecosystem, underscoring the larger fight over digital platforms.'s significance. “The move serves as tangible progress for developers and consumers seeking competition and choices,” he concluded.
It’s clear the stakes are high for Epic as they challenge the titans of the tech world, seeking to reshape the gaming and app distribution landscapes for developers and users alike.
The future will reveal the impacts of this decisive battle between Epic Games and the tech giants on the app economy.
