Google will lose $50 million or more in 2018 from Fortnite bypassing the Play Store

fortnite-screenshot

When Fortnite Battle Royale launched on Android, it made an unusual choice: it bypassed Google Play in favor of offering the game directly from Epic Games’ own website. Most apps and games don’t have the luxury of making this choice – the built-in distribution Google Play offers is critical to their business. But Epic Games believes its game is popular enough and has a strong enough draw to bring players to its website for the Android download instead. In the process, it’s costing Google around $50 million this year in platform fees, according to a new report.

As of its Android launch date, Fortnite had grossed over $180 million on iOS devices, where it had been exclusively available since launching as an invite-only beta on March 15th, before later expanding to all App Store customers.

According to data from app store intelligence firm Sensor Tower, the game has earned Apple more than $54 million thanks to its 30 percent cut of all the in-app spending that takes place on apps distributed in its store.

That’s money Epic Games isn’t apparently willing to give up to Google, when there’s another way.

Unlike Apple, which only allows apps to be downloaded from its own storefront, Google’s platform is more open. There’s a way to adjust an Android device’s settings to download apps and games from anywhere on the web. Of course, by doing so, users are exposed to more security risks, malware infections, and other malicious attacks.

For those reasons, security researchers are saying that Epic Games’ decision sets a dangerous precedent by encouraging people to remove the default security protections from their devices. They’re also concerned that users who look for the game on Google Play could be fooled into downloading suspicious copycat apps that may be trying to take advantage of Fortnite’s absence to scam mobile users.

Google seems to be worried about that, too.

For the first time ever, the company is informing Google Play users that a game is not available for download.

Now, when users search for things like “Fortnite” or “Fortnite Battle Royale,” Google Play will respond that the app is “not available on Google Play.” (One has to wonder if Google’s misspelling of “Royale” as “Royal” in its message was a little eff u to the gamemakers, or just a bit of incompetence.)

In any event, it’s an unusual response on Google’s part – and one it can believably claim was done to serve users as well as protect them from any potential scam apps.

However, the message could lead to some pressure on Epic Games, too. It could encourage consumer complaints from those who want to more easily (or more safely) download the game, as well as from those who don’t understand there’s an alternative method or are confused about how that method works.

In addition, Google is serving up the also hugely popular PUBG Mobile at the top of Fortnite search results followed by other games. In doing so, it’s sending users to another game that can easily eat up users’ time and attention.

For Google, the move by Epic Games is likely troubling, as it could prompt other large games to do the same. While one odd move by Epic Games won’t be a make or break situation for Google Play revenue (which always lags iOS), if it became the norm, Google’s losses could climb.

At present, Google is missing out on millions that will now go directly to the game publisher itself.

Over the rest of 2018, Sensor Tower believes Fortnite will have gained at least $50 million in revenues that would otherwise have been paid out to Google.

The firm expects that when Fortnite rolls out to all supported Android devices, its launch revenue on the platform will closely resemble the first several months of Apple App Store player spending.

It may even surpass it, given the game’s popularity continues growing and the standalone download allows it to reach players in countries where Google Play isn’t available.

Meanwhile, there have been concerns that the download makes it more difficult on users with older Android devices to access the game, because the process for sideloading apps isn’t as straightforward. But Sensor Tower says this will not have a large enough impact to affect Fortnite’s revenue potential in the long run.

Conversation(17)
Sort byBest
  • Loading Android apps from outside the store is fully supported, not the case on iOS.
    Reply
    Share
    • As other have said, the title is bullshit. You can't lose something you never had.
      Reply
      Share
      • The game is not free for the developer though. Apple is banking off those companies. Apple is probably the most crooked and money hungry company there is. A title like fortnight doesn’t need Apple’s app store to sell the game. It’s so popular that, if Apple users had the choice, they would just go download it from Epics servers. But once again Apple has found an illegal way to steal money from it’s users.
        Reply
        Share
        • Are people really so dumb that they own $1000+ phones, but dont know how to download something that's not in the Play Store?? Holy sh*t do I feel bad for these incompetent morons. Always gotta have the hippest technology, but they can't even install an app .. WElcome to 2018
          Reply
          Share
          • Why bypass the Google Play Store but not the Apple one? It's possible to install apps from outside the store on iOS as well. Just a little harder. The ones "losing' $50m are Epic Games.
            Reply
            Share
            • This is a direct result of the AppStore and GooglePlay being too greedy -- sharing 30% of your revenues just to be listed and available for download through the official store is not sustainable for any company. If they only charged 5-10% nothing like this would even happen. Better to use the loophole that Google allows (Apple does not) to install an app from a website or downloaded file on your phone, and pay 0% revenue to the phone company.
              Reply
              Share
              • Google has much bigger issues than if it “deserved” $50 million of in-app purchases from Fornite players. It is currently looking at how to fight a $5 billion anti-trust fine from the EU and can’t afford to try Apple’s heavy handed wall garden right now. Other major game distributors are also going to be watching Epic Games and judging if Google’s 30% cut policy continues to be worth it for them. It should be noted that this isn’t the first time distributing games outside of Google Play has been done. Humble Bundle and Amazon AppStore both supported purchasing games to be downloaded via a side-loaded app. The thing that makes Fortnite unusual is the expected size of the audience. Another key item to take into account is that the industry hasn’t always accepted that an operating system’s native marketplace is the best method of distribution. On Windows 10, distribution of games through the native Windows store is the exception instead of the standard. Major distributors like Electronic Arts has Origin, Blizzard has Battle.net store and Ubisoft has Ubistore. Also on Windows, Valve’s Steam remains a very large part of how video games and DLC are purchased. Fortnite may become a tip of the iceberg moment for reducing Google Play’s impact on mobile gaming if each of those companies decide to release their own appstores for android. I believe if you total up the in-app purchases for the following games, it will probably come out to much more than $50 million in 30% cuts: Blizzard Hearthstone, Ubisoft Might & Magic, Electronic Arts The Sims, Bethesda Fallout Shelter, Nintendo Super Mario Run, Niantic Pokemon Go, Sega Sonic, Capcom Street Fighter, Square Enix Final Fantasy and Bandai Namco Tekken. The next batch of similar games may all be through side-loaded marketstores if Google doesn’t change it’s 30% policy soon. At that point, Google isn’t going to care about $50 million per year lost, they are going to be worried about much more.
                Reply
                Share
                • You can't lose money you never had, and Google isn't spending $50mil because of this move. Whats so bad about the people who made the game getting all the money the game makes?
                  Reply
                  Share
                  • I totally agree. I'm actually upset enough about the claims in this article that I made an account just to comment here. This marks an important step for game developers to start receiving more funding and cut from their investments (look into game dev supply chains). Not a single dime is coming out of Google's wallet, so no, this move is not costing them anything.
                    Reply
                    Share
                    • A platform that is more open and does not lock users into a play store monopoly... sounds good to me.
                      Reply
                      Share
                      Show More Comments...

                      Tinder founder funds sex tips app Lover

                      Want to spice up the bedroom without paying for pills or awkward visits to a sex therapist? A new app called Lover lets you take a sexual personality quiz, explore carnal knowledge tutorials and di...

                      :)