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It hosts massive virtual concerts and gives gamers endless shiny features, with the aim that there’s something new each time a player logs on. The game has dozens of crossovers each year, from Marvel’s Avengers to Star Wars. One part of that equation was, of course, Fortnite.įrom the outset, Epic has always has always had outsized ambitions for Fortnite.
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He wanted Epic to both make and sell games - and create and license the tools used to make them. Sweeney said he always envisioned Epic as a multi-faceted business. Today, the Unreal Engine is also used in animation, such as creating scenes for Disney’s “The Mandalorian.” Between 20, Epic survived mostly on revenue generated from the Unreal Engine’s licensing fees, said Sweeney.
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This became the Unreal Engine, a ubiquitous game software which is now an essential part of Epic’s business. While Epic produced its own shooter games like Fire Fight and Unreal, it also began licensing its game development technology to other game makers in the late 1990s. He ran the company out of his parents’ house in Maryland. In 1991, a young, 20-something Sweeney founded Epic, then known as Potomac Computer Systems, as a way to sell copies of a video game he made himself.
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“So I felt all along that open platforms are the key to free markets and the future of computing.” “You turn it on and it comes up with a programming language prompt,” he continued. This is my first computer, an Apple II,” said Sweeney, gesturing towards the iconic blocky, grey machine on the desk behind him. “I grew up in a time in which anybody could make software. “However, we welcome the opportunity to continue our discussions with Epic and bring Fortnite back to Google Play,” it added.įor Sweeney, who spoke to CNN Business via video call from his home, the battle against Apple and Google is about more than just a 30% cut of its revenue. Google responded that it had “consistent policies that are fair to developers” and that Fortnite had violated those rules. We very much want to keep the company as part of the Apple Developer Program and their apps on the Store.” “Epic has been one of the most successful developers on the App Store, growing into a multibillion dollar business that reaches millions of iOS customers around the world. “Epic’s problem is entirely self-inflicted and is in their power to resolve,” Apple said in a statement.
Epic then filed lawsuits against each of the companies, in which Epic argued the courts should intervene and order Apple and Google to allow developers to sell in-app purchases without the 30% revenue cut. Both Google and Apple promptly removed Fortnite from their stores, alleging the company violated their terms of service. In a blog post, Epic encouraged Fortnite users to pay the company directly for in-app purchases. On August 13, Project Liberty was sprung into action - a plan that sought to force the tech giants into response. The company prepped a 60-page lawsuit and created a video that parodied Apple’s classic “1984” commercial, for good measure. So Epic spent months developing its battle plan to fight Apple, which it codenamed “Project Liberty,” he said.
Sweeney believed that requirement violated antitrust laws because it forced developers to use Apple and Google’s payment systems. If a player downloaded Fortnite from Apple’s App Store, for example, Apple would receive a 30% cut of all in-app purchases. Though Epic has raked in billions off Fortnite’s in-game purchases - about $1.3 billion in 2020 and $1.8 billion in 2019, according to Nielsen’s gaming division SuperData - the company balked at paying a chunk of that revenue to app store owners like Apple and Google. But the company quickly pivoted to a riskier business model, betting that offering Fortnite as a free-to-play game with in-app purchases of digital items like outfits would generate more overall revenue.
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When it first debuted, Epic charged $40 to download the game - a typical price. Launched in 2017, Fortnite quickly became a phenomenon. Ever since Fortnite grew to have a large audience, we felt stifled by several things,” Sweeney told CNN Business during a December interview. “Epic’s frustration with Apple especially, and Google to some extent, had been building up for at least three years.
Tim Sweeney, chief executive and founder of the video game maker Epic Games, in June 2019.
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