The gaming industry is at the cusp of a significant transformation with the Epic Games Store (EGS) expansion into the mobile domain. Forced by the European Union's Digital Markets Act, Apple is opening the gates for third-party stores like EGS. While currently limited to the European market, this shift presents video game developers and publishers with an enticing alternative to the traditional app store ecosystem, historically dominated by Apple and Google.

EGS and Apple Store Fees Compared

The move by EGS into the mobile sphere has been met with enthusiasm by the developer community, highlighting EGS's dedication to more fair developer policies. Offering an attractive 88/12 revenue split, EGS introduces a stark contrast to the conventional 70/30 split found on existing mobile platforms. However, a closer look at platform fee structures shows that the difference might not be as pronounced. 

Epic Games Store takes a 12% cut from game sales. For the first six months, apps keep all revenue, and there's no fee for apps that handle their own in-game purchases. After a million installs, each "first annual" install incurs a 0.50 euro Core Technology Fee (CTF) by Apple.

Under Apple's new EU rules, apps pay the CTF plus 10-17% commission, a drop from the usual 15-30%. Apps making less than $1 million a year pay just 10% under the App Store Small Business Program. Long-term subscriptions over a year also have a 10% fee. Apps earning more than $1 million pay 17%. Using Apple's payment solution for in-app purchases adds 3%, so fees range from 13-20%.

An app with less than a million downloads on the App Store, facing the CTF and 13% fee, ends up with nearly the same revenue split as combining the CTF with Epic's 12% fee. However, if the same app or game opts for a third-party payment solution like 1D3 and waves Epic’s 12% commission on microtransactions, launching on EGS might still be preferable. 

Epic Games Store: Unveiling Benefits for Developers

The Epic Games Store boasts a competitive 88/12 revenue share and enriches the developer experience with added perks. These perks include significant marketing and promotional support to enhance game visibility, alongside a range of payment processing options tailored to developers' unique needs, giving them greater control over their financial transactions.

Payment Processing Options: EGS presents developers with a choice between its 12% commission scheme, which includes payment processing fees, or a 0% commission route through the use of third-party payment solutions. For developers considering a merchant of record service such as 1D3, the latter option could prove to be more financially advantageous

EGS has introduced two programs to aid game launches: Epic First Run, enabling developers to keep 100% of net revenue during the first six months of exclusivity, and Now On Epic, offering the same advantage for games previously launched on other platforms before October 31, 2023. These initiatives are tailored to boost visibility and engagement, transitioning to an 88/12 revenue share after the initial period.

Cross-Platform Functionality: Setting itself apart from traditional mobile stores, EGS facilitates a seamless gaming experience across PC, mobile, and consoles, breaking down the barriers between platforms. Thus, launching on Epic Games Store Mobile could offer developers access to EGS's 230 million-strong audience across PC, consoles, and mobile.

Weighing Pros and Cons of Launching on EGS Mobile

Pros:

• The 88/12 revenue split potentially leads to greater earnings.
• Promotional programs like Epic First Run and Now On Epic promise substantial visibility, a six-month no-fee period and waived fees for using the Unity engine.
• Flexible payment processing options allow for control over transaction expenses and maximising earnings.
• Cross-platform functionality provides access to a broader audience, albeit still smaller than traditional mobile stores.

Cons:

• Apple's CTF Fee for iOS installations past a certain threshold might compromise profitability.
• Managing third-party payment processing might add complexity to the developer's operations.
• Regional restrictions: EGS will initially only be available in Europe.

Conclusion: Navigating the Future of Mobile Game Publishing

The Epic Games Store offers developers and publishers a great commission deal, making more money for them. However, for games qualifying for lower fees on mobile stores, the big audience on Apple and Google might offset this benefit. 

Yet, the key to earning more lies in using third-party payment solutions like 1D3 for in-game purchases. This approach can greatly increase a game's profits on Epic's platform.