Epic Games has launched its store on iOS in the EU, aiming to create an alternative to the Apple App Store and offer more favourable terms for game developers. This move, enabled by new EU regulations, could benefit Epic and its popular game Fortnite by providing lower fees and greater flexibility. However, it remains uncertain whether the Epic Games Store will attract a wide array of third-party developers due to financial and logistical challenges involved.
Apple’s cost structure for apps usually has developers paying a €0.50 (~RM2.43) per-user annual fee, a 10% commission on sales made outside the app, and 5% commission on in-app purchases within a year of installation. Also adding Epic’s 12% commission on sales through its store increases the financial burden, making it a tough choice for developers.
The fees imposed by Apple could be more manageable for larger companies like Epic but are likely to be problematic for smaller developers. Although the company’s Small Business Program offers reduced fees and a grace period for new developers, those who exceed certain revenue thresholds face high costs. This fee structure may discourage smaller developers from moving to alternative marketplaces due to the high per-user fees that apply to the App Store and third-party platforms.
Alternative app stores offer the potential for greater visibility and distribution, but they are currently more suited to big-name developers with significant revenue. Epic Games is trying to attract major developers to its iOS store but faces scepticism from companies like EA and King. Despite plans to have a curated selection of games, Epic may struggle to establish a significant presence and achieve profitability.
(Source: The Verge)
