Epic is offering developers an alternative to Apple’s in-app purchases

Epic Games is offering an alternative to Apple’s in-app purchases for developers, starting June.
Developers will pay a zero percent revenue share on their first $1,000,000 in revenue per app per year, with Epic’s typical 88/12% revenue share kicking in after that.
Epic is launching “webshops” that allow developers to offer out-of-app purchases at a lower cost than Apple and Google’s fees.
Players will accrue 5% Epic Rewards on all their purchases from webshops, which can be applied to future purchases from the Epic Games Store.
Epic also plans to bring Fortnite back to the US iOS App Store next week, after being kicked off in 2020 by Apple.

Epic Games is making some big changes to its store to provide an enticing alternative to Apple’s in-app purchases for developers. The company is announcing the changes less than a day after a major court ruling that mandates that Apple can’t collect fees on purchases made outside of apps or restrict how they point to off-platform payments, meaning that more developers may choose to direct users to other payment options.

Beginning in June, Epic says that for any payments processed via the Epic Games Store, developers will pay a zero percent revenue share – meaning developers themselves will keep all of their revenue – “on their first $1,000,000 in revenue per app per year,” according to a blog post. After that, Epic’s typical 88 / 12 percent revenue share will kick in. Apple and Google offer a lowered commission rate on sales below $1 million, too, but only to 15 percent versus Epic’s zero.

Also beginning in June, Epic will launch a new feature that lets developers launch Epic Games Store-hosted “webshops.” These webshops “can offer players out-of-app purchases as a more cost-effective alternative to in-app purchases, where Apple, Google, and others charge exorbitant fees,” Epic says.

To incentivize buying things from webshops, Epic says that player spending will accrue 5 percent Epic Rewards “on all their purchases.” Epic Rewards can be applied to future purchases from Epic’s store.

Shortly after the ruling last night, CEO Tim Sweeney also announced that Epic plans to bring Fortnite back to the US iOS App Store next week. Apple kicked the game off the App Store in 2020.

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Q. What is Epic Games offering developers as an alternative to Apple’s in-app purchases?

A. Epic Games is offering a zero percent revenue share for payments processed via the Epic Games Store, with a capped amount of $1,000,000 per app per year.

Q. How much commission rate will Epic charge on sales below $1 million?

A. Epic will charge 15% commission rate on sales below $1 million, compared to Apple’s and Google’s lowered commission rates.

Q. What is the new feature that Epic Games Store-hosted “webshops” can offer players?

A. Webshops can offer out-of-app purchases as a more cost-effective alternative to in-app purchases, with exorbitant fees charged by Apple, Google, and others.

Q. How will player spending accrue on all their purchases from webshops?

A. Player spending will accrue 5% Epic Rewards on all their purchases, which can be applied to future purchases from Epic’s store.

Q. Why is Epic Games making these changes?

A. The company is making these changes in response to a major court ruling that mandates Apple cannot collect fees on purchases made outside of apps or restrict how they point to off-platform payments.

Q. What is the typical revenue share for developers using the Epic Games Store?

A. After the first $1,000,000 in revenue per app per year, Epic’s typical 88/12 percent revenue share will kick in.

Q. Why did Apple kick Fortnite out of the US iOS App Store?

A. The exact reason is not specified in the text, but it was announced that Fortnite would be brought back to the US iOS App Store next week.

Q. What is the significance of the court ruling on Epic Games’ changes?

A. The ruling mandates that Apple cannot collect fees on purchases made outside of apps or restrict how they point to off-platform payments, making it easier for developers to choose alternative payment options.

Q. How will the new webshop feature benefit developers?

A. The webshop feature can offer players out-of-app purchases as a more cost-effective alternative to in-app purchases, potentially increasing revenue for developers.

Q. What is Epic Rewards and how can it be used?

A. Epic Rewards is a loyalty program that accrues 5% on all purchases made from webshops, which can be applied to future purchases from Epic’s store.