Late last week, Epic Games introduced a new rewards program designed to motivate users to utilize the company’s payment system rather than the one available via Apple’s App Store or other platforms.
The new Epic Rewards program permanently grants users 20 percent back on purchases made in Fortnite, Rocket League, and Fall Guys when they use Epic’s own payment option. Additionally, the company is increasing Epic Rewards from 5 percent to 20 percent on all other purchases made through the Epic Games Store with the Epic payment system until August 31st.
This offer is accessible on all platforms where Epic is active, comprising iOS, Android, PC, and the web. It’s important to note that when you buy games from the Epic Games Store, you aren’t actually purchasing the game itself, but rather a license to access and play it. This is also the case for other digital gaming platforms, including the leading market player, Steam.
This initiative follows a legal decision in the US that forbids Apple from blocking apps from linking to alternative payment solutions. A similar regulatory framework, known as the Digital Markets Act, was implemented in the EU in 2024, mandating that large tech firms like Apple permit other app stores and payment systems.
With Apple now required to cease collecting fees on purchases made outside the App Store, Epic is seizing the opportunity with a fresh incentive. Starting today, you’ll receive 20 percent back in Epic Rewards for using the company’s payment system for in-app purchases in Fortnite, Rocket League, and Fall Guys.
The incentive isn’t restricted to the App Store; you will earn the same 20 percent reward on purchases made on PC, Android, and the web. Your reward balance will be credited 14 days after your transaction. You can redeem Epic Rewards in the company’s games or on the Epic Games Store.
PC gamers utilizing Epic’s Store will also receive 20 percent back on all purchases. However, unlike the in-app purchase program, this incentive is time-sensitive and will end on August 31.
The rewards are a result of a favorable legal ruling for Epic. Just last week, Yvonne Gonzalez Rogers, a federal district judge in Northern California, stated that Apple violated a prior ruling from 2021, which required the iPhone maker to allow App Store developers to direct users to alternative payment options, thereby avoiding Apple’s 30 percent fees.
Yet after the 2021 judgment, Apple charged a 27 percent commission on external payments, with a reduced rate of 12 percent for members of the iOS Small Business Program. The company also displayed “scare screens” that discouraged users from utilizing third-party payment solutions due to potential compromises in privacy and security. The judge criticized Apple in her decision, asserting that it was fully aware of its actions and consistently chose the most anticompetitive alternatives.
Following the ruling, Epic quickly declared its intention to reinstate Fortnite on the App Store. On Friday, Epic announced that it had submitted the game for review on Apple’s storefront.
“Players deserve better value,” remarked Epic CEO Tim Sweeney in the announcement that coincided with Fortnite’s anticipated return to iOS devices after nearly five years of absence.
Effective May 9, players who make purchases in Fortnite, Rocket League, and Fall Guys using the Epic payment method will receive 20% back in Epic Rewards for every transaction. Any future purchases you wish to make within Epic’s ecosystem can now be made using your accumulated credits.
“This is transformative for regular Fortnite players,” said gaming analyst Maria Chen. “For someone spending $100 monthly on in-game items, that’s an extra $20 back in their wallet.”
Epic’s Strategy After Apple: Rewards and Reduced Fees The rewards program is applicable across various platforms, including PC, Android, and the web, establishing a cohesive incentive structure regardless of how players engage with Epic’s titles. PC gamers will benefit even more, with the 20% reward rate applying to all purchases in the Epic Games Store until August 31, 2025. After this date, only Epic’s own titles will continue to offer the enhanced rate indefinitely.
Epic’s assertive move follows a significant court victory against Apple. A federal court judge recently mandated that Apple stop charging fees for transactions occurring outside of its App Store and held the tech company accountable for discouraging consumers from exploring other payment options.
This ruling reinforced a 2021 injunction that permitted developers to point users toward their own payment systems, effectively circumventing Apple’s standard 30% commission. Epic acted quickly, re-submitting Fortnite for review on the US App Store.
“This is precisely what we’ve been advocating for,” stated Sweeney. “Competition that provides players with increased choices and better deals.”
The approach clearly aims to attract users away from Apple’s payment system. Buyers utilizing Apple’s platform will not receive any rewards, presenting a distinct financial motivation to opt for Epic’s direct channel instead.
Epic’s Rewards Program and Competitive Landscape For developers, Epic is offering similarly appealing terms. Starting in June, game creators will not be required to pay any revenue share on their initial $1 million processed through the Epic platform.
“Epic is adopting a long-term strategy,” said tech industry consultant James Wilson. “They’re prepared to forgo short-term earnings to cultivate loyalty and expand their market presence.”
Developers are now able to create their own online stores with Epic’s endorsement, providing players with options to make purchases outside of the app, effectively avoiding platform fees. This developer-centric model has garnered wide acclaim across the industry.
The gaming community has reacted positively to Epic’s announcement. Online discussions and social media are filled with players estimating potential savings and making plans to return to Fortnite on iOS.
“I’ve been eager to play Fortnite on my iPhone again for years,” remarked longtime player Tyler Johnson. “Getting 20% back on purchases makes it even more appealing.”
As the digital gaming marketplace continues to change, Epic’s daring rewards program poses a significant challenge to traditional commission models. The company is betting that increased consumer options, with substantial financial incentives, will alter the power dynamics within the gaming ecosystem.
Now the decision rests with Apple. Industry observers are intrigued to see whether the tech giant will modify its commission structure in response or maintain its current business approach.
Either way, it seems that players and developers will be the immediate beneficiaries of this increasingly competitive environment. As Fortnite makes its celebrated return to iOS, Epic’s rewards initiative marks the beginning of a new phase in the ongoing fight for platform independence and equitable digital marketplace practices.
What started as an ambitious effort to compete with Valve’s Steam in 2018 has become less far-fetched, as Epic showcases its “Year in Review” for 2024, highlighting improvements compared to previous years. The marketplace still trails significantly behind Steam but is no longer left in obscurity despite its relatively small market share.
In positive news, Epic reports that the store has reached 295 million users on PC and nearly 900 million cross-platform accounts when considering other devices that support Fortnite (mobile, console, etc.). This indicates growth of about 100 million users from the previous year, boasting a monthly average user rate of 67 million. Epic claims this reflects a 6% increase over 2023, although they refrained from sharing a monthly average user count for the entirety of 2023, instead focusing solely on December.
On a less positive note, Epic’s revenue from third-party game sales on PC declined from $310 million to $255 million, marking a significant 18% decrease year-over-year. Given that this revenue stream is crucial for online stores and primarily fuels their profits, it suggests that the surge in users mostly pertains to Epic’s own game titles. The total revenue has increased from $950 million to $1.09 billion while third-party revenue has decreased, which underscores that point.
Regarding player spending and engagement, the top three titles are all Free-to-Play: Hoyoverse’s Genshin Impact leads the list, followed by Epic’s own Rocket League, and then Hoyoverse’s Honkai Star Rail. The first paid game to appear on the list is Grand Theft Auto V, recognized as the most lucrative piece of media ever.
Looking ahead, Epic intends to enhance their mobile applications, part of a persistent conflict the publisher has been engaging in against Google and Apple. The PC client will notably be adding features like voice chat, text chat, out-of-game invitations, and pre-loading.
While the statistics can be interpreted in various ways depending on the focus, the drop in third-party revenue is certainly a point of concern. It’s probable that individual titles on Steam or exclusive storefronts on consoles generated more revenue in 2024 than all of Epic’s third-party sales combined. Unless this trend changes, it’s hard to envision Epic continuing to market third-party games at all, considering that the vast majority of their revenue is generated from their own titles like Fortnite, Rocket League, and Fall Guys.
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