A new document testifies to the exorbitant sum Epic Games spent to secure six months of exclusivity for Borderlands 3.
Epic Games and Apple are currently engaged in a legal battle. While the start of this trial is not full of information on the dispute between the two companies, we learn a lot more about how the gaming industry works from behind the scenes. Several documents have already been unveiled and give us an overview of the business and economic aspect behind the entertainment of video games. Lately, a document regarding Epic Games and one of its purchases surfaced. This is a document attesting to the amount spent by Epic Games to afford the exclusivity of Borderlands 3 during six months.
Also notable: Epic paid Take-Two $146 million in advances for PC Borderlands 3 exclusivity ($115 million for the game + marketing + one-off fee) and recouped the minimum guarantee part ($80mil) in just the first 2 weeks. pic.twitter.com/3YThZuy5pJ
— Simon Carless (@simoncarless) May 4, 2021
The title was actually released on the Epic Games Store on September 13, 2019, compared to May 13, 2020 on other PC gaming platforms such as Steam. For this exclusivity, Epic Games has paid the modest sum of $ 146 million. This sum includes in particular $ 80 million simply for the minimum guarantees of the game, ie the minimum sum paid to the developer despite the profitability or not of the title. These guarantees paid off completely after barely two weeks, as can be seen from the document. So this is a move that seems to have been beneficial for Epic Games, knowing that Apple estimates that the company could well have more than 330 million losses due to poorly managed and too many exclusives.
During the first two weeks, Epic Games managed to get $ 9.2 million in profit from its 12% commission on game revenue. More importantly for Epic Games, the company had recorded 53% of new users on the platform following the arrival of the video game title. However, we must not forget that Epic Games is for the moment far from being profitable. Because of the many exclusives that Epic Games funded to the tune of $ 440 million last year, the company is losing more money than it makes. However, Tim Sweeney, the CEO, remains positive and says that this is the company’s plan to build both a strong user base and a strong content base. Epic Games even hope to be profitable within about four years.