It's returning to iPhones in Europe, to Android devices worldwide. Can people get it, access it? What's the pick up? Right now, you can only access the Epic Games store in the EU if you're on iOS and globally on Android. As you mentioned, it is an absolute pain to download on both stores. So Apple and Google are fighting this tooth and nail. I just watched some videos that came out this morning and we're going to be trying it all day today as this is requiring anywhere from 10 to 20 steps. There's lots of flags and alerts on both phone devices saying, hey, are you sure? Are you sure you want to download this? So these stores are going to fight this tooth and nail. An Apple spokesperson clarified to Bloomberg that it is a five step processing in Europe, at least not 15. I'm glad to have you on the show. Right. You're a firm that invests in video

startups that want to disrupt the industry. That's what Tim Sweeney is trying to do. The argument that if you have more stores, you have a more competitive market. $180 billion video games market, half of which is mobile. Is he right about that argument? He is right that there is it is better for the games industry if there are more stores, more options, and more competitive pricing. That said, I think what he's fighting for is fantastic and will be positive in this development. Today is positive for the games industry. That said, Apple is well within their right having the platform they've built to defend it as much as they can. And so the courts of the U.S. have decided that, yes, they're not a monopoly. They but they have to allow for third-party payments to be processed essentially. The way I read that and the way we read that as a firm here at Convoy is that,

you know, that's kind of a meat in the middle, right? Let's let them do off-platform payments. But you're not a monopoly, and you've got to let Epic Games launch a store in your app store. I mean, the reason that this is happening for iOS in Europe and not here is because the Digital Markets Act and the fact that that's right. Europe's decided that Apple is acting as a gatekeeper in some way, Google to these app stores, and they've got to change. But quite often, what happens in Europe ends up happening here in the U.S.. So when, if you're saying that pushing and fighting tooth and nail, will we ever see it occurring here in the U.S., unless there's our own antitrust issues that are set to bear here? So it took about four years to get to this point just in the EU. So I think that we're looking at another just the prediction 3 to 5 years before we see this really happen in the United

States, unless a huge ruling comes down from the Supreme Court in the United States. If they decide to take this court and take the appeal, which they rejected, I believe, earlier this year, last year. And so I think we're looking at a very long, drawn-out battle. And in the meantime, Apple is making billions and billions a week off of the App Store. In about 60 to 70% of all revenue on Google's App Store and on Apple's App Store comes from the video gaming space alone. And so the reason why they're fighting. Yeah, well, let me just jump in. And Kara, I'm sorry, but we're talking about that, the Apple side of the story. Let's be under no illusions. Epic. Want to make money from this arrangement, right? They have the target of 100 million downloads by a certain period of time. Ambitious. Will they be successful, is the question.

I think Epic Games is going to make a lot of money off of this move today. I think they'll make it primarily through Android globally, and then I think they'll secondarily make it on iOS. I think it'll be in that order of magnitude. But Epic Games, as a private company that owns Fortnite and Rocket League and Fall Guys, they have now recently launched UEFA, which is basically their ROBLOX competitor. They watched Roblox have success, so they're launching their own sort of user-generated content platform. This is a continued effort for Epic Games to increase their margin profile. Mobile is a perfect way to do that, and whether that's an acquisition or an IPO in the future, Epic Games is playing their hand very well, and this will work out in their favor for sure. I think the data showed that some 35 million people played Fortnite for more than 600,000,000 hours in July on Xbox and

PlayStation. Just give us a context of how popular Fortnite is compared to the rest of the gaming landscape. Before Fortnite was kicked off the App Store, we as a firm did an estimate that Fortnite was responsible alone for almost 1% of all revenue on the Apple App Store before it was kicked off. That was sort of an estimate that we kind of did internally. The significance that Fortnite is a title on console, which you just mentioned, is absolutely massive, and on mobile, which is more accessible globally, around emerging market countries especially, which Android is important. Fortnite is one of the top five forever titles, we'd call them forever titles, and in the gaming industry in the world, right alongside that is things like Call of Duty and Grand Theft Auto and many others.

Epic Games Debuts Mobile Storefront

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