Epic Games Offered Sony Over $200 Million For Exclusive Titles
Newly leaked documents reveal Epic Games offered Sony $200 million for first-party PlayStation exclusive titles. Epic Games is currently embroiled in a legal dispute with Apple regarding the removal of Fortnite from the iOS App Store. Fortnite was first removed last August when Epic decided to introduce a payment method for the game's microtransactions. Apple took issue with this as it would have enabled Epic to bypass Apple's stipulations, including the tech giant's 30% cut on all app revenue. Despite Apple offering to make Fortnite available on the app store again as long as they received their fair share of the revenue, Epic decided to pursue the matter in court. Epic's reasoning is that Apple holds an unfair advantage over its competitors through its distribution of apps on the iOS store.
The case has been wide-ranging, even implicating other game publishers that have nothing to do with the ongoing legal battle. As a result, companies such as Nintendo, Valve, and Microsoft are being required to submit documents attorneys and the court deemed relevant to Epic and Apple's disagreement. These documents continue to provide greater insight into the gaming world, especially the complex, often obscure details surrounding exclusivity deals. For instance, documents recently showed that Epic paid $115 million to exclusively sell Borderlands 3 on the Epic Games Store.
According to PC Gamer, new documents show that Epic offered Sony "$200M MG+ for 4-6 titles." It is widely thought that MG stands for the minimum guarantee, which is a common term Epic uses to define its exclusivity deals. MG refers to the bare minimum revenue Epic promises to a game publisher through an Epic Games Store Exclusive. However, the document in question does not confirm the full extent of the potential deal's value. It is unclear if Epic offered $200 million per game or $200 million for the full list of games. At this time, only two Sony titles have released exclusively on the Epic Store: ReadySet Heroes and Predator: Hunting Grounds.
The gaming industry is being rocked by lawsuits at the moment. Sony is currently facing a class-action lawsuit where it must contest allegations that it holds a monopoly on PlayStation Store digital downloads and delivers unfair pricing to consumers. The lawsuit highlights the limitations Sony allegedly puts on certain digital downloads. The case relates to the competitive nature of exclusivity deals.
Profits are projected to increase for the gaming industry's biggest players, meaning more deals like the ones highlighted above are likely to be on the way. More documents will surely be revealed soon as Epic continues its legal fight against Apple as well. Each document offers another glimpse into the strategies and ambitions of the industry's most prominent players.
Source: PC Gamer