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> Games are often very low margin products Yeah, so, did you check how much Epic earns with fortnite? I wont call this 'low margin' at all.

• cryptica 6y ago
  Profit margin is about the percentage they make after costs have been factored in. Their profit margin is indeed low; 12% of the revenue... compared to Apple who takes 30%. See https://gamerant.com/epic-games-store-revenue-split-explained/#:~:text=Sweeney%20also%20said%20that%20Epic,payment%20processing%2C%20and%20customer%20service https://gamerant.com/epic-games-store-revenue-split-explaine.... So my point is absolutely valid and it is shocking that Apple makes almost 3 times more money from Fortnight than Epic makes. Imagine spending years building an app and then someone else ends up making 3 times more money from it than you do...
  • mvanbaak 6y ago
    The 30% apple (and all other stores) “take” are not pure profits. They offer a lot of services that cost them money. So no, apple is not making 3 times as much.
    • cryptica 6y ago
      Apple's offering is a lot simpler and a lot more hands-off. I doubt their costs are very high and if they are, they're probably wasting the money because I can't see what's so complex about the Apple App store... And I'm a developer so I know that operating at that scale comes with challenges but it really doesn't compare to the challenges which the creators of Fortnight must face on a daily basis.
  • nodamage 6y ago
    You've confused two different things here. Epic takes a 12% cut from third-party games sold via the Epic Game Store. This is unrelated to their profits from Fortnite.