Epic CEO Tim Sweeney grilled on platform agreements, V-Bucks
Epic Games CEO Tim Sweeney on Monday testified in the Epic Games v. Apple case, laying out and defending his reasoning behind Epic's suit against Apple.

Credit: AppleInsider
Two of the major points of contention for Epic in its beef with Apple are the restriction on third-party app stores and Apple's 30% cut of app and in-app purchases.
"Epic didn't initially take a critical view of Apple's policies," Sweeney said. "It took a very long time for me to come to the realization of all the negative impacts of Apple's policy.
In his testimony, the Epic Games chief executive called "Fortnite" a "phenomenon that transcends gaming." He also described the battle royale game as a "metaverse" that includes social experiences and other virtual features.
When asked about whether there was a difference between Apple's 30% of app purchases and similar commissions paid to console makers, Sweeney said there's a "general bargain" in the gaming industry. Consoles sell at a loss and need game developers, while Apple sells the iPhone at a profit.
During the cross-examination, Sweeney was also asked about the "special deal" that Epic Games wanted from Apple. He characterized that inquiry as Epic Games wanting to come to an agreement with Apple, not a request for special treatment.
On the hot fix that ultimately resulted in "Fortnite's" removal from the App Store, Sweeney said he "wanted the world to see that Apple exercises total control over the availability of all software on iOS."
Sweeney was also grilled on V-Bucks, the in-game currency of "Fortnite." Apple's lawyer asked about the marginal cost of a V-Buck. Sweeney said there wasn't any costs to produce them.
At one point during the testimony, Apple's lawyer put up a chart showing the polices of other companies like Sony, Microsoft, and Nintendo. That includes taking a 30% commission, prohibiting the side-loading of apps, and requiring the use of a first-party payment system. During another portion of questioning, Sweeney says Epic Games continues to sell V-Bucks on those platforms because it agrees with the business models of those companies.
Sweeney also confirmed Epic charged developers a 60% fee when it distributed other games on its platform in the 1990s.
Apple's lawyers also asked why Sweeney didn't voice concerns when Epic Games originally signed a contact with the Cupertino company. Sweeney answered by saying he didn't try to renegotiate.
The Epic Games CEO also said he actually wasn't "completely certain" that Apple would actually remove "Fortnite" from the App Store after the implementation of the direct payment system. But he "hoped Apple would reconsider its policies."

Credit: AppleInsider
Two of the major points of contention for Epic in its beef with Apple are the restriction on third-party app stores and Apple's 30% cut of app and in-app purchases.
"Epic didn't initially take a critical view of Apple's policies," Sweeney said. "It took a very long time for me to come to the realization of all the negative impacts of Apple's policy.
In his testimony, the Epic Games chief executive called "Fortnite" a "phenomenon that transcends gaming." He also described the battle royale game as a "metaverse" that includes social experiences and other virtual features.
When asked about whether there was a difference between Apple's 30% of app purchases and similar commissions paid to console makers, Sweeney said there's a "general bargain" in the gaming industry. Consoles sell at a loss and need game developers, while Apple sells the iPhone at a profit.
During the cross-examination, Sweeney was also asked about the "special deal" that Epic Games wanted from Apple. He characterized that inquiry as Epic Games wanting to come to an agreement with Apple, not a request for special treatment.
On the hot fix that ultimately resulted in "Fortnite's" removal from the App Store, Sweeney said he "wanted the world to see that Apple exercises total control over the availability of all software on iOS."
Sweeney was also grilled on V-Bucks, the in-game currency of "Fortnite." Apple's lawyer asked about the marginal cost of a V-Buck. Sweeney said there wasn't any costs to produce them.
At one point during the testimony, Apple's lawyer put up a chart showing the polices of other companies like Sony, Microsoft, and Nintendo. That includes taking a 30% commission, prohibiting the side-loading of apps, and requiring the use of a first-party payment system. During another portion of questioning, Sweeney says Epic Games continues to sell V-Bucks on those platforms because it agrees with the business models of those companies.
Sweeney also confirmed Epic charged developers a 60% fee when it distributed other games on its platform in the 1990s.
Apple's lawyers also asked why Sweeney didn't voice concerns when Epic Games originally signed a contact with the Cupertino company. Sweeney answered by saying he didn't try to renegotiate.
The Epic Games CEO also said he actually wasn't "completely certain" that Apple would actually remove "Fortnite" from the App Store after the implementation of the direct payment system. But he "hoped Apple would reconsider its policies."



Comments
So consoles hardware is sold at a loss therefore they deserve a 30% commission rate but Apple makes a profit selling hardware so they do not? Really? Do you seriously think someone who has gone to college, law school and had the experience to become a judge is stupid enough to buy that line of reasoning? Please!
Fortnite means a lot to the under 12 crowd. So I guess it's there parents who are happy the day is off iOS for now.
He new damn well they would remove it. That’s why he spent a ton on a commercial mimicking Apple’s and had law suites and ads hitting the next day.
Hahahahahahahah... 5 hours later...hahahaha
>During his testimony, Sweeney said Epic does pay commissions to other platform owners such as Sony Group Corp's PlayStation and Microsoft Corp's Xbox but explained that those hardware makers use fees from developers to subsidize the further development of their hardware.
Judge Gonzalez Rogers also asked her first direct questions of the trial during Sweeney's testimony, inquiring whether Apple's original iPhones from 2007 and 2008 were sophisticated enough to run Epic's video games. Sweeney said they were not.
“So Apple did have to do something to the iPhone itself in order for it to be sophisticated enough to play your software? How is that any different than consoles?” she asked.
Sweeney responded that the hardware development was similar, but the two devices had different business models.<
https://finance.yahoo.com/news/epic-games-ceo-cites-apples-230408352.html
Just because games console makers adapted the "give away the razor and sell the blades" business model, doesn't mean that they are losing money on the sale of game consoles. It has been proven many times over, that this is a very profitable business model. I'm willing to bet that a game console in it's lifetime, generate much, much more profit for the makers (from the sales of games), than an iPhone in its lifetime, generate for Apple, from the sale of apps.
if I go into Walmart and setup on Isle 5 and say I am going to be selling my stuff here and I will just give Walmart 5 bucks and they will like it or I will
sue Walmart?
I mean honestly, is Epic kidding? If they win, anyone can go into Costco and sell stuff and nameTheir price?
not only that , I can go into my local Taco shop and tell them I will ask be selling some drinks to their customers inside their restaurant and they need to be quiet!
Wait and see Tim Cock take the bench. You are playing the big leagues kids… prepare for shock and awe!