Game development giant Epic Games has unveiled a new revenue-sharing model designed to support smaller developers. Under the new policy, the company will not take any commission on the first $1,000,000 in annual earnings from an app. After surpassing this threshold, a standard 12% fee will apply. This initiative aims to provide financial relief to emerging creators while undercutting competitors such as Steam and Apple. Additionally, Epic introduced "webshops," allowing developers to bypass traditional in-app purchase systems, particularly those governed by Apple's App Store fees. These webshops are scheduled to launch next month and will be accessible on various platforms, including iOS devices in the EU and US. To further incentivize users, Epic Rewards will offer a 5% bonus on all purchases made through these alternative stores.
Starting in June, game developers using the Epic Games Store can look forward to a more favorable revenue-sharing structure. Unlike other major platforms, Epic will waive commissions entirely for the first million dollars generated annually by each title. This move contrasts sharply with industry standards, where platforms like Steam charge a 30% commission and Apple applies a 15% rate on the first million before increasing it to 30%. By adopting this approach, Epic positions itself as a champion of independent creators seeking greater profitability.
Beyond its revised revenue model, Epic is introducing webshops, a system enabling out-of-app purchases. This innovation allows developers to circumvent costly in-app purchase fees typically enforced by dominant market players. The timing of this announcement coincides with a legal victory against Apple, wherein a California court ruled that Apple cannot collect fees for transactions occurring outside the App Store. As a result, Fortnite, Epic's flagship game, is set to return to Apple devices in the US shortly. CEO Tim Sweeney has expressed intentions to reintroduce Fortnite globally if Apple extends the court's ruling universally.
This strategic shift by Epic Games reflects a broader effort to reshape the gaming ecosystem. By reducing barriers for smaller developers and providing cost-effective alternatives to established in-app payment methods, the company hopes to attract both creators and consumers. Furthermore, the introduction of Epic Rewards bonuses adds another layer of appeal, encouraging users to explore webshops. While the future impact remains to be seen, these changes signal a significant step toward fostering a more inclusive and equitable environment within the gaming industry.