Epic Games buys artist community ArtStation, drops commissions to 12% – ClearTips

Epic Games buys artist community ArtStation, drops commissions to 12% – TechCrunch

On the same day as Fortnite creator Epic Games goes to trial with one of the biggest legal challenges to the App Store’s business model to date, it has simultaneously announced the acquisition of artist portfolio community Artistic – and immediately commissions commissions on sales Has reduced. Now the standard manufacturer on ArtStation will see the same 12% commission rate for PCs at Epic’s own games store, instead of the 30% it was before. This low rate is meant to serve as an example for the wider community as the “appropriate” commission should look like. This could become a point of comparison for big developers like Epic compared to the Epic App Store’s 30% commission as the court case moves forward.

ArtStation today provides a place for gaming, media and entertainment for creators to showcase their work and find new jobs. The company has had a long association with Epic Games, as many artistic manufacturers work with Epic’s Unreal Engine. However, ArtStation is also a home for all who are 2D and 3D creators across the vertical, including not working with unrealistic engines.

The acquisition will not change, the team says in its announcement. Instead, the deal will expand opportunities for creators to monetize their work. Most notably, this includes the commission drop. For standard creators, fees will be reduced from 30% to 12%. For PRO members (who pay $ 9.95 / mo for membership), the commission is reduced from 20% to 8%. And for self-promoted sales, the fees will be just 5%. ArtEngine’s streaming video service, ArtStation Learning, will also be free for the rest of 2021, the company notes.

The sliced ​​commission, however, is perhaps the most significant change Epic is making to Artistic as it gives Epic a specific example of how it treats its own producer communities. This would refer to acquisition and commission changes during testing with Apple as its own Epic Games store and a similarly low rate. Already, Epic’s move prompted Microsoft to reduce the game’s sales cuts, as well as, recently declaring a 30% to 12% drop.

In testing, Epic Games will try to argue that Apple has a monopoly on the iOS app ecosystem and forces developers to use Apple’s payment systems and pay commissions on sales and in-app purchases that Flow to those systems. Epic Games, like many other big app makers, will use their own payment system to avoid commissions – or at the very least, be able to point users to a website where they can pay directly. But Apple does not allow this, according to its App Store guidelines.

Last year, Epic Games expelled Fortnit’s App Store by offering a new direct way to pay on mobile devices, which offered a steep discount. This was a calculated move. As a result both Apple and Google immediately banned the game for violating their respective App Store policies. And then Epic sued.

While Epic’s battle is technically with both Apple and Google, it has focused its energies more on the former because Android allows devices to do apps directly (a means of installing apps directly), and Apple doesn’t. Does.

Meanwhile, Apple argues that Epic Games agreed to Apple’s rules and guidelines and then purposely violated it in an attempt to get a special deal. But Apple says the guidelines apply equally to all developers, and Epic does not find an exception here.

However, during an American antitrust investigation into big technology, it was revealed that Apple did, in fact, make special deals in the past. The email, shared as part of an investigation by the House Judiciary Committee, revealed that Apple had initially agreed to a 15% commission for Amazon’s Prime Video app, when video apps were typically 30 a year %, Then 15% in year two and beyond. (Apple says Amazon is only eligible for a new program.) Plus, other old emails revealed that Apple had several discussions about increasing commissions by more than 30%, indicating that Apple considered Was that his commission rate was somewhat flex.

Further from today’s takeover by Epic Games, artisans received a “megagrant” from the epic during the height of the epidemic to help them through an indefinite period. This could push the two companies to discuss deeper relationships going forward.

“Over the past seven years, we have worked hard to enable creators to showcase their work, connect with opportunities and do a work they love,” said Leonard Teo, Artificial Co-founder and in a statement. “As part of the epic, we will be able to pursue this mission and bring the community back in ways we were not capable of ourselves, while retaining the name and spirit of ArtStation.”

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