“Falling” with tons of money Epic Games Store has spent to give free games, this is how Steam wins?

In our latest announcement, Epic Games Store announced the huge amount of money they had to pay for free game giveaways in 2019. Accordingly, 200 million free games have been Epic Games Store sent to 108 million customers. On average, each platform user has signed up to get about 2 free games.

In order to pay for these huge gifts, Epic Games Store had to spend 620 million USD (about 14 thousand 300 billion VND). This can be considered a huge number for any game publishing port, even with Steam, the largest game publishing portal in the world at the moment. According to the 2018 financial report, Steam reached a record turnover of nearly 5 billion USD. And of course, Steam hard to spend more than 10% of their revenue just to “give gifts to gamers”.

In addition to constantly giving away free gifts to users, Epic Games Store Another way to dominate the market is to use it. It is violent for game developers. To be able to negotiate with manufacturers in releasing exclusive games on Epic Store, in addition to minimizing the service fee, the platform also uses a “hand-in” to persuade partners. This money is called an “exclusive fee”, and is sent to manufacturers by Epic Store regardless of the game’s sales.

For example, in the case of Control, Epic used US $ 10.45 million (~ VND 240 billion) to pay exclusive fees for the duo producers of 505 Games and Remedy Entertainment. In which, 505 Games enjoyed 45%, the rest belonged to Remedy Entertainment.

So now we understand why manufacturers like to cooperate with Epic Games Store so. In addition to the very cheap service fee, only 12% (with Steam will be 30%), Epic partners will receive an exclusive fee. On the total revenue, the cooperation with Epic Store will bring a lot of profits if compared with Steam or other platforms. This is the main reason many game developers did not hesitate to “flinch”. Steam to “get back to the Epic Games Store team”.

 Falling with tons of money Epic Games Store has spent to give free games this is how Steam wins | PC/Console

With the goal of dominating the market, Epic Games Store will certainly not give up its way. In a letter to the gaming community in 2020, Epic Games Store affirms: “The new decade has come and we all need new games. We have prepared a huge pool of games to give away in 2020. And of course, you can only find them for free on Epic Games. Store. We will continue to keep giving away free games every week throughout 2020. As long as you’re with us, you can keep these great games forever. ”

In the race on the game publishing market, who will win? Steam Is there a new strategy to meet the formidable Epic Games Store? Time will give us the most accurate answer.

[ Æsir Tales ]
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