Epic's offer to Google and Apple is simple: reach equilibrium with their direct purchase 20% discount, and they'll talk. That math means Epic wants them to reduce their cut from 30% to 10% ($2 less revenue for every $10 earned). That is aggressive.
I would guess Epic would be OK settling a *little* higher than that, and that their break point is 15%, which would mean Apple and Google would receive 50% less revenue from Fortnite going forward. That's a chunk of change.
The alternative, as Epic is rather boldly pointing out, is that they receive none of it. From probably the most popular game on the planet, and most certainly the biggest game by IAP revenue ever made.

I think their negotiating position is fairly strong.
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