Home Business News Epic Games to lose $26m monthly following App Store account termination

Epic Games to lose $26m monthly following App Store account termination

by LLB Finance Reporter
8th Sep 20 1:54 pm

Estimation by Buy Shares indicatesthat Epic Games could potentially lose an average of $26.7 million in monthly revenue after the App Store terminated the Epic Games account.

App Store accounts for Epic’s highest revenue

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 Buy Shares has determined that the App Store accounts for 65.46% of all in-app purchases globally in H1, 2020. Buy Share’s estimation, therefore, filtered the cumulative revenue for Fortnite on Google Play and Apple App Store by using the finding of 65.46% when comparing Google Play and App Store revenue.

The projections reveal that Epic Games will potentially lose an average of $26.7 million monthly in revenue after being booted from the App Store (by average revenue data from January 2020 to August 2020).

The research also overviewed the market capitalisation of the leading game companies. From the data, Activision Blizzard had the highest capitalization of $61.99 billion which is at least three times more compared to Epic Games’ $17.3 billion.

The Buy Shares report also highlights contributors to Epic Games’ recent surge in market valuation. According to the report, “Epic Games is among companies that spearheaded the boom in the gaming industry during the coronavirus pandemic quarantine. Consumers turned to interactive entertainment like games to pass time. The spike in Epic game valuation was also due to the impact of the coronavirus pandemic.”

With the deletion of Epic Games’ App Store account, the company has warned that its future is at stake.

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