The Epic Games Store recently launched on the iPhone in the EU. For the first time, Epic’s own store became an option for some iPhone users, and Android too. But it seems the company behind Fortnite is finding developer royalty rates an ongoing challenge.
Epic’s lower royalty pricing comes with a strict requirement
Epic and Apple have been in a years-long dispute over App Store pricing and developer rights. Epic’s refusal to pay Apple’s standard cut of App Store revenue is the reason Fortnite remains unavailable for US iPhones.
However, according to a new report, the company is still experimenting itself with developer revenue cuts.
As part of the new “Launch Everywhere with Epic” program, Epic is reducing the royalty rate for games built with Unreal Engine from 5 percent to 3.5 percent — however, those games will have to be available on the Epic Games Store on launch day.
As Peters highlights, this incentive has a strict requirement. Epic is requiring games to launch day one on the Epic Games Store to benefit from this reduced royalty rate.
Game developers who want to launch on a competing store must simultaneously make their title available through Epic, or they’ll be subject to the standard 5 percent charge.
Notably, Epic is making a temporary exemption for iOS developers, “citing Apple’s Core Technology Fee.” This is the fee developers are required to pay Apple when using a third-party App Store in the EU.
9to5Mac’s Take
Whatever ends up happening with Apple and Epic’s legal battles, this story highlights how the two companies are both playing similar roles in the app development world. They each offer a platform where users can find and download games, and both charge royalties to developers that vary based on different factors. There are all kinds of differences between the two companies, but ultimately both want their stores filled with compelling games. I’m curious if this new incentive will make a meaningful difference.
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