Goldman Sachs Believes Fortnite’s Off-App Payment Function Will Not Impact Apple’s App Store Revenues at This Time

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Fortnite Returns to Apple’s App Store

After a lengthy absence of five years, Epic Games’ popular battle royale game, Fortnite, has made a comeback on the Apple App Store in the United States. This re-entry is particularly noteworthy as it now includes an option for off-app payments. Interestingly, a recent analysis from Wall Street has suggested that this new development may have less impact on Apple’s revenue than initially anticipated.

The Background on Fortnite’s App Store Removal

To provide some context, Fortnite was removed from Apple’s App Store in 2020 after Epic Games attempted to introduce a payment option that circumvented Apple’s system. This decision sparked a significant legal battle surrounding app store policies and payment methodologies.

Recent Legal Developments

Earlier this month, Judge Yvonne Gonzalez Rogers of the U. S.District Court for the Northern District of California issued a ruling indicating that Apple had violated a previous injunction from 2021. This injunction stipulated that Apple could not prohibit developers from directing users to alternative payment methods.

In response, Apple expressed strong disagreement with the ruling but has stated its intention to comply while pending the outcome of an appeal.

Goldman Sachs Analysis on Payment Options

In light of these developments, Michael Ng, an analyst from Goldman Sachs, has shared insights that led him to feel “less concerned”about the possible financial repercussions for Apple due to Fortnite’s new payment options.

Ng highlighted that Fortnite’s user interface presents both in-app and off-app payment options side by side, acknowledging the complexities associated with external payment processing.

Impact of Payment Options on User Behavior

Despite the newfound flexibility, Fortnite has opted not to offer direct discounts for users who choose external payment methods. Instead, the game provides indirect discounts—specifically, a 20% deposit from Epic Rewards with a 14-day delay—which may not present a significant enough incentive for many players.

Consequently, Ng posits that the combination of limited resources for developers and ongoing uncertainty regarding long-term app store policies could lead to slow adoption of external payment methods. This perspective suggests that only the most financially robust developers may leverage these options successfully.

Implications for Apple’s Revenue Model

This analysis appears favorable for Apple, which maintains a considerable 30% fee on in-app payments in the U. S.This rate decreases to 15% after the first year of subscription. Notably, Apple’s Services sector—encompassing the App Store, iCloud, and Apple TV Plus—reported a remarkable revenue of $26.65 billion in the first quarter of 2025.

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