Epic Games’ Boss Fight
In case you didn’t know, Epic Games is the game developer behind Fortnite. In case you missed it, Fortnite got kicked off the App Store. It ran an update for a separate payment system in the game, diverting users from Apple’s own system (which skims a useful 30% cut!).
Epic has sued Apple and Google for the ban, but also taking more than their fair share of its in-game revenues. The breaking news this morning is that the whole thing has gone horribly wrong, and now Epic stands to lose Apple’s developer tools as well. Wah-wah-wah…
It’s the status quo for apps to net their profit with millions in small micro-transactions for extra content, and for Apple to take 30% of that. This is Apple’s legal defense now that Epic Games is turning Steve Jobs’ famous philosophy against it, “breaking the status quo!”
This isn’t a good look for Apple mere weeks after an antitrust hearing on Capitol Hill. It needs to defend its market position to defend its stock market gains, but Epic still has more to lose.
These in-game micro-transactions are controversial enough themselves, but crucial to some companies. You see kids running up huge bills on their parents’ phones buying in-game cosmetics (like on Fortnite), or paying to win. We could be about to see regulation!
Epic Games is like a level one newb engaging a late-game level 76 boss. It’s picked the wrong fight; David versus Goliath. It’s ‘bout to get one-shotted, and rivals are ‘bout to streak ahead. But sometimes you need an Epic hero to take on the big bully. This is that showdown!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.