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In an ambitious move that marks a new chapter in its ongoing battle with tech giants, Epic Games Inc. announced the launch of its independent mobile app store on Friday. The move promises to rekindle the availability of popular titles such as Fortnite, Rocket League, and Fall Guys on Android devices globally and iOS products within the European Union. With a goal of securing 100 million new installs on mobile devices by year's end, the company sets its sights on tapping into the $188-billion games market.
Despite the challenges posed by the installation process, particularly on iOS devices where Epic CEO Tim Sweeney claims it is intentionally difficult, the company is steadfast in its approach. Sweeney described the iOS install procedure as having "15 horrible steps," contrasting Apple's statement that only 5 steps are necessary. Regardless, the overarching intent is to establish a system that competes with Apple and Google's app stores, offering consumers a more open and competitive gaming market.
The stakes for Epic have been high, with Sweeney acknowledging that their legal battles have cost "hundreds of millions of dollars" and potential revenue losses of up to $1 billion following Fortnite's removal from the App Store in 2020. The launch of Epic's mobile storefront follows recent regulatory developments in the EU, particularly the Digital Markets Act, which calls for openness in the app-market ecosystem.
Epic's storefront will impose a transaction fee of just 12%, significantly undercutting the standard 30% levied by the incumbents. This is consistent with the fee structure of Epic's current store for PCs and Macs. Conversations with other game companies reveal a shared concern over customer 'friction’ – the cumbersome steps involved in making transactions outside of Apple's ecosystem.
While there are concerns, Epic is optimistic about the future and aims to attract a sizeable gaming audience through various strategies, including a rotating selection of free games—which has already proved successful within the Epic Games Store. Sweeney made it clear that a subscription model is not part of their plan, as the company intends to focus on converting users into long-term customers organically.
The store, which is already operational for other platforms, will welcome third-party developers in December. Furthermore, come early 2025, Epic plans to expand access to its self-publishing tools to mobile creators.
While the mobile gaming segment showed a slowdown in downloads, indicating potential market saturation or dynamic shifts, Epic Games' action seems to be well-timed. With Microsoft Corp. also venturing into web-based mobile stores, the market is poised for disruptive changes in the way mobile games are distributed and monetized.