Epic Games Acquires ArtStation, Reduces Commissions

Coinciding with the start of its high-profile legal battle against Apple concerning App Store policies, Epic Games has announced the acquisition of ArtStation, a leading platform for artists’ portfolios. Immediately following the acquisition, Epic implemented a significant reduction in commissions charged on sales made through the platform.

Lower Commission Rates for ArtStation Creators

Standard creators on ArtStation will now experience a commission rate of 12% on their sales, mirroring the rate found within Epic’s own PC Games Store. This represents a substantial decrease from the previous 30% commission. This change is intended to demonstrate a fair and reasonable commission structure to the broader digital marketplace.

The lowered rates extend to ArtStation Pro members, who pay a monthly subscription fee of $9.95. Their commission will decrease from 20% to 8%. Furthermore, sales promoted directly by the creator will be subject to a fee of only 5%.

ArtStation: A Hub for Digital Artists

ArtStation currently serves as a vital resource for artists in gaming, media, and entertainment, providing a space to display their work and seek employment opportunities. The company maintains a strong existing relationship with Epic Games, as many ArtStation users contribute to Epic’s Unreal Engine projects.

However, ArtStation’s community extends beyond Unreal Engine users, encompassing 2D and 3D artists across diverse industries. Epic has stated that the acquisition will not alter this broad scope, but rather expand monetization opportunities for creators.

Strategic Timing and the Apple Trial

This commission reduction is a key element of Epic’s strategy, providing a concrete example of its commitment to fair treatment of creators. Epic is expected to highlight this acquisition and the resulting changes during its ongoing trial with Apple.

The trial centers on Epic’s claim that Apple maintains a monopoly over the iOS app ecosystem and leverages its power to enforce the use of Apple’s payment systems and associated commissions. Epic seeks the ability to utilize its own payment processing systems or direct users to alternative payment options.

The Fortnite Dispute and App Store Expulsion

The legal dispute originated when Epic Games introduced a direct payment option within Fortnite, offering users a discount. This action directly violated App Store guidelines, leading to the game’s removal from the platform by both Apple and Google.

Epic subsequently filed a lawsuit against both companies, focusing primarily on Apple due to the restrictions on sideloading apps on iOS devices – a practice permitted on Android.

Apple’s Defense and Past Practices

Apple argues that Epic Games willingly agreed to its terms and guidelines and then deliberately breached them in an attempt to secure preferential treatment. Apple maintains that its policies are applied consistently to all developers.

However, investigations into big tech companies have revealed instances where Apple made exceptions to its standard commission rates. For example, emails revealed a 15% commission agreement with Amazon’s Prime Video app, differing from the typical 30% rate for subscription video services.

Previous Support and Future Collaboration

Prior to the acquisition, ArtStation received a “Megagrant” from Epic Games during the pandemic to provide financial support. This initial collaboration likely facilitated discussions regarding a more comprehensive partnership.

Leonard Teo, CEO and co-founder of ArtStation, stated that joining Epic will enable the platform to further its mission of supporting creators and expanding opportunities, while preserving the ArtStation brand and community spirit.

ArtStation Learning’s streaming video service will also be available at no cost for the remainder of 2021.

• Key Takeaway: Epic Games’ acquisition of ArtStation and subsequent commission reductions are strategically aligned with its legal battle against Apple.
• Impact: Creators on ArtStation will benefit from significantly lower commission rates.
• Future Outlook: The outcome of the Apple trial could have far-reaching implications for app store policies and developer revenue.