Fortnite Ban Is Costing Epic Games More Than $26 Million a Month

Epic Games standoff with Apple has undoubtedly been hogging the limelight. Apple removed Fortnite from App Store for offering a direct payment mode to bypass App Store fees. The battle ensued with Epic knocking the court doors. As expected, Epic Vs. Apple battle is costing a lot of money for both companies. Estimates from Buy Shares reveal that Epic Games is losing more than $26 million every month Fortnite continues to be banned on the App Store.

Between January and August this year, Epic Games’ highest revenue was from the App Store at an estimated $191.42 million compared to $101.48 million from Google Play. Based on Sensor Tower data we have determined that the App Store accounts for 65.46% of all in-app purchases globally in H1, 2020. Our estimation, therefore, filtered the cumulative revenue for Fortnite on Google Play and Apple App Store by using our finding of 65.46% when comparing Google Play and App Store revenue.

The data is sourced from Sensor Tower and Epic Games. Epic Games has earned an estimated $26.7 million every month starting from January this year to the month it was banned. In other words, Epic game is estimated to have lost $26-million revenue, and we feel the numbers might be even more significant as Fortnite announced a new season.

The graph above is a clear indicator that the App Store was a significant source of revenue for Fortnite. In all likelihood, Epic Games is staring at more losses as its developer account stands terminated. The report says, “ account termination will definitely have a catastrophic impact on the company’s future.”

Our Take

Apple is also loosing out on the App Store fees earned via Fortnite. However, the losses are still a small part of $18.3 billion in revenue earned via the App Store. We also need to realize that the Epic Game standoff has left iOS users in the lurch. Hopefully, Epic Games and Apple will find amicable means to resolve the issue.

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