Epic Games Introduces Zero-Fee In-App Purchases for Developers, Launching Webshops to Bypass Apple and Google Fees
Epic Games is introducing significant changes to its store that aim to provide an appealing alternative to Apple's in-app purchase system for developers. The company made this announcement less than a day after a major court ruling that prevents Apple from collecting fees on transactions made outside of apps or restricting developers from directing users to external payment methods. This ruling could lead more developers to explore outside payment options, making Epic's new offering particularly timely. Starting in June, Epic will implement a zero percent revenue share for developers on the first $1,000,000 in revenue generated per app per year through the Epic Games Store. Essentially, developers will keep all their earnings up to this threshold. Beyond $1,000,000, Epic will revert to its standard 88/12 percent revenue split, meaning developers will still retain the majority of their earnings. In contrast, both Apple and Google currently offer a reduced commission rate of 15 percent on sales under $1 million, rather than waiving the fee entirely. Additionally, in June, Epic will introduce a new feature called "webshops." Webshops, hosted by the Epic Games Store, will allow developers to offer out-of-app purchases as a more cost-effective alternative to in-app transactions. Apple, Google, and similar platforms typically charge substantial fees for in-app purchases, which can significantly erode developers' profits. By providing this webshop option, Epic aims to make it easier for developers to circumvent these high fees and retain more of their revenue. To further encourage users to make purchases through these webshops, Epic has announced a reward system. Players will earn 5 percent Epic Rewards on all their transactions, which can be redeemed for future purchases from the Epic Games Store. This incentive is designed to attract more users to the webshop feature, benefiting both Epic and the developers who participate. These changes are part of Epic's broader strategy to challenge the dominance of major app stores and promote a more developer-friendly environment. By offering a more favorable revenue split and a flexible purchasing system, Epic hopes to attract and retain a larger community of developers and players, ultimately fostering greater innovation and diversity in the gaming ecosystem.
