Video Games Fortnitely Vol. 26: Platform Pricing Pressures

Research evidence excerpt

Video Games Fortnitely Vol. 26: Platform Pricing Pressures

USA | Interactive Entertainment EquityJulyResearch1, 2026

Exhibit 1 - Google's updated mobile app feeVideo Games Fortnitely Vol. 26: Platform Pricing

structure leaves the current 30% fee in place

for vast majority of IAP games, and puts feesPressures

on link-out transactions. Provides fee breaks

Fortnite UGC developer payouts have crossed $1B life-to-date (vs $1.5B from onprogram.new installs for apps in the new Level Up

Auto-renewing subs All other transactions All other transactionsRBLX in just 2025), but on a similar annual pace to last 2 years and remains Google's updated fee(onstructure staring June 30, 2026 in the US, UK, and Western EU new & existing installs) (on new installs) (on existing installs)

+5% to all if using Google Play Billing

$1M (USD)mainly engagement-based vs in-game UGC transactions. Still early, but not yet Firstof annual sales 10% 10% 10%

25%** Standard Fee

after $1M+ of sales 10% 20% 20%an imminent RBLX threat. Google's new app fees are live in the US, UK, and EU (for link-outs)

20% When qualified for

Level Up or Apps Experience 10% 15% 15%with potential 5%-10% savings, but primarily prices out 3P web transactions. US (for link-outs)

Source: Company data, JefferiesJudge hearing on July 16 potentially ends Epic v Google. . **Equivalent to prior 30% fee where vast majority of IAP gaming revenue sits today.

Fortnite UGC lifetime payouts crosses $1B, but still well shy of RBLX: Epic Games announced its

Unreal 6 game engine is launching in 2027, but more actionable was new stats on the ramp of its

UGC business (Creative/UEFN). The headline numberis $1B paid to 3P developers life-to date. We

already know March 2024 TTM payouts were $320, and Jan 2025 TTM was $352M, so being over