Business

Epic Games Paying $520 Million to Settle FTC Charges on Fortnite

Published

6 months ago

December 20, 2022

Anthony DiMoro

Epic Games will pay $520 million to settle charges from the United States Federal Trade Commission, aka the FTC, over it’s popular title Fortnite, according to an official announcement issued by the FTC.

Per the announcement, Epic Games will pay $275 million for violating the Children’s Online Privacy Protection Act (COPPA) and another $245 million for design relying on dark patterns “to dupe millions of players into making unintentional purchases”.

Some of the privacy violations included collecting personal information from children under 13 without parental consent or notification, as well as enabling voice and text chat for children and teens by default.

The FTC stated that employees at Epic Games had pushed for the company to make voice and text chat an opt-in feature as early as 2017, however Epic Games slowed on making changes despite reports of online harassment and sexual harassment towards children while playing Fortnite.

FTC also added that when Epic Games did add a button to turn off voice chat, they made it hard to find for users.

Additionally, the FTC (dark patterns complaint) referenced “counterintuitive, inconsistent, and confusing button configuration” and single-button purchases that meant users could accidentally buy something when trying to wake the game from sleep mode or while on a loading screen. Epic Games also put the button to preview an item in Fortnite adjacent to the purchase button, and Fortnite allowed children to purchase the V-Bucks virtual currency without parental consent or card holder action until 2018, and it locked the accounts of users who disputed unauthorized charges through their credit card companies. resulting in accidental purchases.

The FTC also determined that Epic Games ignored millions of user complaints about the wrongful charges and then used internal testing that made the cancel and refund features far more difficult for users to locate.

Epic Games said it would be “moving beyond long-standing industry practices.”

“No developer creates a game with the intention of ending up here,” the company said in an official statement. “The video game industry is a place of fast-moving innovation, where player expectations are high and new ideas are paramount. Statutes written decades ago don’t specify how gaming ecosystems should operate. The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough. We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.

“Over the past few years, we’ve been making changes to ensure our ecosystem meets the expectations of our players and regulators, which we hope will be a helpful guide for others in our industry.”

Business

Epic Games Store Hits $820 Million in Player Spending During 2022

Published

2 months ago

March 22, 2023

Anthony DiMoro

Epic Games has officially released financial data related to it’s growing marketplace on PC, showing that $820 million was spent on the Epic Games Store during the 2022 year, and promised support for third-party subscription services and new ‘content hubs’ to help companies promote their titles.

According to the data:

The numbers

Total users of Epic Games Store PC: 230 million (up 19% year-on-year)
Epic cross-platform accounts: 732 million
Daily active users peak: 34.3 million
Monthly active users: 68 million (up 10%)

Total spending, incl. Epic’s games: $820 million (down 2%)
Spending on third-party games: $355 million (up 18%)
Free games claimed: 700 million
Number of new PC releases: 626
Total library of PC games: 1,548 (up 68%)

Epic Games stated on it’s blog that more PC games launched during the 2022 year than in any year prior.

Fortnite, Grand Theft Auto 5, Rocket League, Genshin Impact, and Tiny Tina’s Wonderlands were among the most popular titles related to player engagement and player spending, and Epic Games looks to deepen their focus in 2023 as they aim to improve the store launcher’s performance.

Epic Games also aims to add support for subscription services from third-party publishers and live service products by the end of the 2023 year, adding that they are also working on ‘content hubs’ which will be separate from product pages and will enable publishers to “share information with users in a robust editorial format.”

Business

California Judge Dismisses Gamers Lawsuit Filed Against Microsoft

Published

2 months ago

March 22, 2023

Anthony DiMoro

A federal judge in San Francisco has ruled that the group of 10 plaintiffs “[lacked] allegations” in their lawsuit filed last year that claimed Microsoft’s ownerships of Activision Blizzard would harm consumers and competition in the video games market, according to a filing shared by Reuters.

While US District Judge Jacqueline Corley dismissed the case, she also gave the plaintiffs 20 days to refine their lawsuit and resubmit it, and the group’s lawyer, Joseph Saveri, said that there are plans to officially submit an amended lawsuit with “additional factual detail” that will address the judge’s concerns.

It marks a victory for Microsoft, but their battles are far from over as they still face a hearing over the Federal Trade Commission’s legal complaint, which is currently slated to take place in August of this year.

Microsoft and Activision Blizzard originally expected the transaction to be complete by June 30, 2023.

Business

Super Evil Megacorp Expanding Team for Netflix Project

Published

2 months ago

March 22, 2023

Anthony DiMoro

Catalyst Black developer Super Evil Megacorp has expanded their team following the announcement of their new partnership with content streaming platform Netflix, which include new additions from big name brands like Blizzard, Ubisoft, and Rockstar Games, according to MobileGamer.biz.

These are some of the appointments:

Tim Hume – lead gameplay tech engineer
JC Simbulan – lead animator
Steven Goodwin – senior technical engineer
Jurie Horneman – lead narrative engineer
Cassandre Beaumier – production director
Milo Casali – senior level designer

Netflix’s vice president and head of external games Leanne Loombe commented on the new title in the works for Netflix.

“It’s a big bet for us and we’re very much focused on creating an ecosystem around the streaming content and the game,” Loombe said. “It’s really a transmedia play for us in this brand new IP.”