“Fortnite” has made $1.2 billion on mobile since it launched on the App Store two years ago, SensorTower analyst Craig Chapple tells TheWrap
Epic Games’ decision to sue Apple and Google over the removal of its wildly popular “Fortnite” game from their app and gaming sites is an unprecedented move that could completely change how the tech giants pay third-party developers, but legal experts say a lack of prior antitrust rulings will make the case difficult to win in court.
“This is a game of leverage being fought on the legal battlefield,” Matt Bilinsky, business attorney at Los Angeles law firm Weinberg Gonser, told TheWrap. He noted that Epic — which reported $4.2 billion in revenue in 2019, according to VentureBeat — is one of the only game developers with enough money and clout to challenge goliaths like Apple and Google.
Continue reading
Join WrapPRO for Exclusive Content,
Full Video Access, Premium Events, and More!
The companies got into a public feud on Thursday shortly after Epic started offering a discount on the “Fortnite” in-game currency called V-Bucks. If customers purchased the currency directly from Epic instead of through the App Store, they saved roughly 20% — and Epic pocketed all the cash instead of paying Apple’s standard 30% commission on App Store transactions. Apple promptly booted “Fortnite” from the App Store, and Epic responded with a lawsuit accusing Apple of antitrust violations for a fee structure that amounted to an unfair monopoly. Later on Thursday, Epic filed a nearly identical suit against Google for removing “Fortnite” from its Google Play store.
Apple said in a statement Thursday it planned to work with Epic to get “Fortnite” back on the App Store soon — which Bilinksy said was a sign of just how much power Epic Games has in this battle. “A lesser publisher wouldn’t get that response, they’d get the response from Apple to pretty much screw off,” he said.
Also Read: Epic Games Sues Apple for Removing 'Fortnite' From App Store
SensorTower mobile analyst Craig Chapple also noted the timing of Epic Games’ lawsuits — and its willingness to take the risk on its most lucrative property. “It’s interesting they’re using the popularity of ‘Fortnite’ to pull the game and try to put some pressure onto Apple at a time when governments are scrutinizing the practices and also some other big games companies are scrutinizing those practices,” he said. “Fortnite” racked up $1.8 billion in sales last year, according to Nielsen’s SuperData — more than 40% of the company’s overall revenues.
Epic’s San Francisco-based law firm, Faegre Drinker Biddle & Reath, didn’t return TheWrap’s requests for comment about why the lawsuit was filed now. But experts noted that while U.S. antitrust enforcement has lapsed in the last decade, the European Union has been more aggressive in recent years cracking down on big tech. In March 2019, the EU investigated Apple for antitrust complaints after Spotify sued the company.
“There has been increasing scrutiny of the position that the app stores occupy in the mobile games market and the 30% fee that they charge on all transactions,” Fernandes said. “It is reasonable to believe that Epic Games had been preparing for this legal dispute for some time and it saw this as a good moment to act.”
Bilinksy said there is very little legal precedent to draw from in this case, partly because the United States’ overall laws on antitrust remain vague. “Generally, American antitrust and anti-monopoly law has really loosened up over the past 25 to 30 years,” Bilinsky said. “The government is far more hesitant, whether under Democrats or Republicans, to impose restrictions for monopolistic practices than they were 50 years ago and that really has come to a head in terms of the tech companies because they’re so hard to regulate, because they’re not based in the physical world.”
Bilinsky added, “There’s the argument to be made that all these major tech companies are establishing de facto monopolies, and the government hasn’t really done anything about it.”
Also Read: Apple Stock Hits New High on Report of Possible Music, TV Subscription Bundle
The gaming industry has long complained about the commissions that Apple and Google have charged — which Epic’s lawsuit described as “exorbitant” and “anti-competitive.”
“This is also not the first time that Epic Games has tried to circumvent the app stores transaction fees,” Guilherme Fernandes, market consultant at games and esports analytics company NewZoo, told TheWrap. He noted that “Fortnite” wasn’t available on the Google Play Store for over a year. “For 18 months, (Epic) offered ‘Fortnite’ on Android devices through direct download, outside the (Google) Play Store, until it caved in in April, citing the influence that having it available on the official store has on consumers,” Fernandes said.
Apple has argued that the 30% fee not only covers hosting a game, but also offers exposure to a wider user base and tools that let developers launch their games quickly. “A 70-30 split plus all the things you get, and you can easily release your game is a lot better than it was” when the App Store first launched, Chapple said. “Apple and the App Store have actually done a lot to really grow the mobile games industry into what is now the biggest segment of gaming.” Reps for Apple and Google did not respond to repeated requests for comment about the lawsuits.
Others noted that while the fee may seem high, it’s not outside the norm within the industry. “For a centralized repository of apps and app stores that 30% is definitely on the higher end,” Bilinsky said, “but it is within the gap of what is considered standard.”
Also Read: Facebook Could Face $500 Billion in Fines for Illegally Collecting Biometric Data Through Instagram
Epic has another advantage in this fight: Unlike other gaming publishers, it also distributes “Fortnite” on PC, consoles and Android phones. Epic also operates its own marketplace, the Epic Games Store — where 80% of each transaction returns to the developer. Sweeney has claimed its 20% fee is a fairer deal.
Fernandes noted that competition from the Epic Games Store motivated competitor Valve to reconsider how it priced fees on its PC game marketplace, Steam. Epic “has also taken a similar stance on PC; it introduced its very own Epic Games Store on PC as an alternative to Valve’s Steam and its 30% fee on every transaction that took place on PC’s largest games platform,” Fernandes said.
But even though Epic has a strong infrastructure of its own, it still needs the App Store and could lose a significant amount of money the longer “Fortnite” is banned. The company said in April that the first-person shooter game reached 350 million players globally. SensorTower estimates the game has been downloaded 133.2 million times on the App Store to date. “Since it launched in 2018 on the App Store, we estimate it’s made $1.2 billion on mobile alone,” Chapple said.
There’s a good chance Epic will resolve its dispute with Apple and Google long before its case reaches a courtroom — which could take up to six years, Bilinsky said. For both sides, the risks of a trial may just be too great given the lack of legal precedent. “In terms of (a court saying) we now determine that this fundamental nature of your business model is an anti-competitive, monopolistic practice that violates antitrust law, and you need to cease… nothing’s coming to mind,” he said.
Apple TV+: Here Are All the Original Shows in the Works for Apple's Streaming Service (Photos)
-
Apple TV+Apple TV+ finally launches on Friday with four original series, some kids' programming and a little non-fiction content. But Apple's forthcoming streaming service, which is the tech giant's attempt to compete with the likes of Netflix and Amazon, will begin to roll out even more programs in the coming months from star players like M. Night Shyamalan and Octavia Spencer. TheWrap has rounded up all the shows that have been set for the streaming service so far, or are currently in development, so you know what you'll get if you subscribe for $4.99/month. We've also noted which series will be available with the Nov. 1 launch.
Also Read: Apple TV+: How a Tech Company Built a Streaming Service From Scratch by Going All-In With Originals
-
Apple TV+“The Morning Show” Taking an inside look at the dark side of morning TV, Reese Witherspoon and Jennifer Aniston executive produce and star in the drama series. Witherspoon comes to this off her hit HBO drama “Big Little Lies” and Aniston returns to TV in a major role for the first time since her hit sitcom “Friends” went off the air. Steve Carell will also star on the series from Kerry Ehrin. (Available at launch)
-
Apple TV+
“Dickinson” This coming-of-age comedy series will star Hailee Steinfeld as Emily Dickinson, exploring the constraints of society, gender, and family that she experienced as a budding writer. The show is written by Alena Smith and directed by David Gordon Green. (Available at launch)
-
Apple TV+
“Ghostwriter" A reinvention of the beloved original series, follows four kids who are brought together by a mysterious ghost in a neighborhood bookstore, and must team up to release fictional characters from works of literature. (Available at launch)
-
Apple TV+
“See” Francis Lawrence, best-known for directing "Red Sparrow" and the final three "Hunger Games" films, will direct and produce this drama written by Steven Knight and starring Jason Momoa and Alfre Woodard. The sci-fi series is set in a future where humans are born blind. (Available at launch)
-
Apple TV+
“For All Mankind” "Outlander" and "Battlestar Galactica" showrunner Ronald D. Moore created and will write and produce the science fiction drama, premised on the idea that the Space Race of the Cold War never ended. He co-created the series with “Fargo” executive producers Matt Wolpert and Ben Nedivi. (Available at launch)
-
Apple TV+
“Helpsters” The first series set up as part of Sesame Workshop’s partnership with Apple, the show stars Cody and a team of vibrant monsters who love to help solve problems. It all starts with a plan. (Available at launch)
-
Apple TV+
"Snoopy in Space" A new original from Peanuts Worldwide and DHX Media, takes viewers on a journey with Snoopy as he follows his dreams to become an astronaut. Together, Snoopy, Charlie Brown and the Peanuts crew take command of the International Space Station and explore the moon and beyond. (Available at launch)
-
Getty
Oprah Winfrey docuseries As part of Oprah's multi-year content deal with Apple, she revealed she's working on a documentary called "Toxic Labor" and a multi-part untitled series about mental health. She is also bringing back her book club as a show, "Oprah's Book Club." ("Oprah's Book Club" will be available at launch)
-
Apple TV+
“Servant” "Sixth Sense" and "Glass" director M. Night Shyamalan will executive produce this psychological thriller, with Tony Basgallop writing. Lauren Ambrose and Rupert Grint star as a young couple who hire a nanny (Nell Tiger Free) to care for their newborn. (Premiering Nov. 28)
-
Getty Images
“Truth Be Told” Based on Kathleen Barber’s novel of the same name, the series centers on investigative reporter Poppy Parnell (Octavia Spencer) as she follows an old murder case through her podcast, and will explore America's obsession with true-crime podcasts. Aaron Paul, Lizzy Caplan, Elizabeth Perkins and Mekhi Phifer also star, with Reese Witherspoon executive producing. Peter Chernin, Jenno Topping and Kristen Campo from Chernin Entertainment are also set to serve as executive producers. (Premiering Dec. 6)
-
Getty Images
“Amazing Stories” Steven Spielberg will executive produce the revival of “Amazing Stories,” the science fiction and horror anthology he co-created for NBC that ran for two seasons in the 1980s. After some behind-the-scenes shakeups, including the departure of original showrunner Bryan Fuller, "Once Upon a Time" creators Edward Kitsis and Adam Horowitz signed on to run the reboot.
-
Canal+ Group
“Calls” The new, short-form English adaptation of creator Timothée Hochet’s French series will take on an innovative form of storytelling, utilizing real-life audio sources and minimal visuals.
-
Getty Images
“Defending Jacob” Described as a gripping, character-driven thriller based on the 2012 novel by William Landay, “Defending Jacob” stars Chris Evans, with “Planet of the Apes” screenwriter Mark Bomback to serve as showrunner.
-
Getty Images
“Home Before Dark” The mystery series follows a girl who moves from Brooklyn to a small lakeside town, and subsequently uncovers a cold case that residents attempted to bury. The project was inspired by the real-life story of Hilde Lysiak, a young investigative reporter who exposed a murder in her hometown of Selinsgrove, PA, garnering national and international attention. Brooklynn Prince and Jim Sturgess will star.
-
Getty Images
"My Glory Was I Had Such Friends" Jennifer Garner is set to star in the J.J. Abrams-produced series based on Amy Silverstein's 2017 memoir about an extraordinary group of women who supported Silverstein as she waited for a second life-saving heart transplant.
-
Apple
“Pachinko” An eight-episode adaptation of the 2017 bestseller by Min Jin Lee, Apple’s “epic in scope” adaptation of “Pachinko” will be set in Korea, Japan and America. “The Terror” alum Soo Hugh will serve as showrunner.
-
Getty Images
“Foundation” Based on Isaac Asimov’s novel series of the same name, this series stars Jared Harris and Lee Pace and tracks the future history of the human race during and after the decline and fall of a galaxy-spanning empire. David S. Goyer serves as showrunner.
-
Getty Images
“Central Park” Josh Gad and Loren Bouchard are set to produce this animated musical series about a family of caretakers who live and work in -- and end up saving -- Central Park. The voice cast includes Gad, “Frozen” star Kristen Bell, and “Hamilton's” Daveed Diggs and Leslie Odom Jr.
-
Getty Images
“Home” The 10-episode docuseries centers on innovative homes around the world as well as the people who built them. Matt Tyrnauer directs and serves as one of the executive producers.
-
Getty Images
“Little America” This show tells the stories of immigrants in America, drawing from true stories featured in Epic Magazine. The show will be written and executive produced by Kumail Nanjiani and Emily V. Gordon, the husband-and-wife team behind the hit romantic comedy “The Big Sick,” which hit theaters in the summer of 2017 to critical and commercial success.
-
Getty Images
“Little Voice” The dramedy featuring original music from Sara Bareilles focuses on finding your authentic voice in your early 20s and is inspired by the diverse musicality of New York. It is produced by J.J. Abrams’ Bad Robot Productions in association with Warner Bros. Television.
-
Getty Images
“Mythic Quest” Co-created by “It’s Always Sunny in Philadelphia” duo Rob McElhenney and Charlie Day will star McElhenney as the head of a video game development studio. F. Murray Abraham, Imani Hakim, David Hornsby and Danny Pudi also star.
-
Getty Images
"Shantaram" An international drama series based on Gregory David Robert's novel, "Shantaram" stars Charlie Hunnam as Lin, a man who has escaped an Australian prison and carves out a new life in Bombay. The series is written and executive produced by Eric Warren Singer.
-
Photographed for TheWrap by Patrick Fraser
Untitled Brie Larson project Based on the memoir by Amaryllis Fox titled “Life Undercover,” the untitled series will star Brie Larson as a young woman recruited to join the CIA. “Animal Kingdom” writer and executive producer Megan Martin is in talks to write and executive produce the series from Medias Res.
-
Christopher Polk/Getty Images
Untitled Curtis Sittenfeld project Inspired by Curtis Sittenfeld's short story collection "You Think It, I’ll Say It.” Colleen McGuinness serves as showrunner, while Reese Witherspoon and Lauren Neustadter serve as executive producers. "Saturday Night Live" alum Kristen Wiig was originally attached to star but dropped out due to scheduling conflicts.
-
Getty Images
Untitled Damien Chazelle project Damien Chazelle, who became the youngest person ever to nab the Academy Award for Best Director when he won for “La La Land," will write, direct, and produce a one-hour drama for Apple, alongside executive producers Jordan Horowitz and Frank Berger.
-
Getty
"Time Bandits" Taika Waititi is developing an adaptation of Terry Gilliam’s 1981 film, “Time Bandits” for Apple. Waititi will co-write and direct the pilot for the potential series, which is being co-produced by Anonymous Content, Paramount Television and MRC. He also will serve as executive producer alongside Gilliam and producer Dan Halsted.
-
Getty
"Mr. Corman" Joseph Gordon-Levitt is set to write, direct, executive produce and star on “Mr. Corman,” a dramedy series in development at Apple TV+. The show, which hails from A24 and Gordon-Levitt’s HitRECord banner, follows the life of a public schoolteacher (Gordon-Levitt) in California’s San Fernando Valley.
-
Getty
"Mosquito Coast" Justin Theroux will star in this series based on the 1981 novel by his uncle, novelist Paul Theroux. The show, which has been ordered to series, follows an idealist who uproots his family to Latin America. “Luther” creator Neil Cross will co-write the first episode with Tom Bissell and serve as showrunner on the series.
-
TheWrap
"Swagger" “Black Panther” and “Us” star Winston Duke leads this basketball drama from NBA superstar Kevin Durant. Duke will star as Ike, a youth basketball coach and former star player. The series went into production this month.
-
Getty
"Lisey's Story" Clive Owen and Julianne Moore will star in this limited series from Stephen King and J.J. Abrams. Based on King's best-selling 2006 novel, the deeply personal thriller follows Lisey (Moore) two years after the death of her husband. A series of events causes her to begin facing amazing realities about her husband that she had repressed and forgotten.
-
Getty
"Masters of Air" This limited World War II drama series comes from Tom Hanks and Steven Spielberg and will be the first series produced in-house by Apple. The show is based the book of the same name by Donald L. Miller and follows the true, deeply personal story of the American bomber boys in World War II who brought the war to Hitler’s doorstep. It is the third series in Spielberg and Hank’s “WWII saga,” following “Band of Brothers” and “The Pacific,” both of which aired on HBO.
-
NBC
"Ted Lasso" Jason Sudeikis is bringing back his clueless football coach character Ted Lasso for a new series at Apple TV+. “Ted Lasso” — named for the character Sudeikis first originated on NBC during the networks Premier League coverage — stars the “Saturday Night Live” alum as an idealistic all-American football coach hired to manage an English football club, despite having no soccer coaching experience at all. In addition to starring, Sudeikis will serve writer and executive producer on the comedy, which has been given a series order.
-
Getty
"El Gato Negro" adaptation Robert Rodriguez and Diego Boneta are adapting Mexican comic book “El Gato Negro” into a TV series for Apple. The MGM Television-produced project, which is in the early stages of development at the forthcoming streaming service, would be directed and executive produced by Rodriguez and star Boneta, who would also executive produce. “Supergirl” writer Eric Carrasco is writing the script, with Joel Novoa set as a co-producer for the potential series.
Tech giant’s attempt to compete in SVOD space launched Friday
Apple TV+ finally launches on Friday with four original series, some kids' programming and a little non-fiction content. But Apple's forthcoming streaming service, which is the tech giant's attempt to compete with the likes of Netflix and Amazon, will begin to roll out even more programs in the coming months from star players like M. Night Shyamalan and Octavia Spencer. TheWrap has rounded up all the shows that have been set for the streaming service so far, or are currently in development, so you know what you'll get if you subscribe for $4.99/month. We've also noted which series will be available with the Nov. 1 launch.
Also Read: Apple TV+: How a Tech Company Built a Streaming Service From Scratch by Going All-In With Originals
Samson Amore
Reporter • samson.amore@thewrap.com • Twitter: @Samsonamore