Embracer Group claims they have spent twice as much money paying fees as developing games.
The fees of digital platforms They are the subject of contention since Epic Games opened the discussion a few years ago. Tim Sweeney’s company has not only been very vocal in its criticism of the 30% rate on sales used by Steam and Google Play, among others. He has also taken Apple to court for this very issue, and it seems that Epic Games is not alone in its criticism. Embracer Group, the company owner of THQ Nordic, Koch Media, Gearbox and an infinity of studies, has criticized the current model of digital stores in its last financial report.
We will continue to challenge these paradigmsLars Wingefors, CEO of EmbracerAnd it is that, affirms its CEO Lars Wingefors, Embracer Group has spent in 2020 twice as much money in paying digital sales fees as in development of their games. And this is only counting digital sales, without adding the fees paid for physical sales. A situation that involves not being able to invest more money on their projects, for obvious reasons, which leads them to declare against these rates.
Biomutant, one of Embracer’s upcoming releases
“During the past fiscal year, the actual fees paid to the owners of the platforms (consoles and Steam) just because of digital sales, it is estimated that they have been at least twice the actual development costs of video games in the past fiscal year, “reads the company’s report, before stating that”we will continue to challenge these paradigms and looking for opportunities to reduce costs and increase investment related to content creation. “
Spending twice as much money on developing fees are big words when you talk about a company with 68 studios around the world. On this issue, a recent GDC 2021 survey made it clear that 73% of developers are against this “standard” rate of 30%. For its part, Microsoft announced last month that they are reducing the rate of their PC store to 12%, thus matching the distribution of the Epic Games Store. With Embracer Group added to the criticism, we will see if there are changes in the model of digital sales.
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