Here’s what it would take for Epic Games to stop snapping up store exclusives
Epic Games has detailed some of the reasoning behind its recent acquisitions of multiple exclusives for its digital storefront.
CEO Tim Sweeney has been taking to Twitter again to voice his opinions, highlighting why the company has decided to take on a handful of digital titles.
It mostly comes down to revenue split, with developers taking 88% of profits from all copies sold through the Epic Games Store.
Compared to Valve’s Steam, which demands a 30% cut of all profits, it feels like a no-brainer for studios and publishers to embrace this new route.
Why 12%? We chose this number to provide a super-competitive deal for partners while building an enduring and profitable store business for Epic.
From that 12%, we net around 5% after direct costs and that could grow to 6-7% with greater economies of scale.
— Tim Sweeney (@TimSweeneyEpic) April 22, 2019
‘If Steam committed to a permanent 88% revenue share for all developers and publishers without major strings attached, Epic would hastily organize a retreat from exclusives (while honoring our partner commitments) and consider putting our own games on Steam,’ explains Sweeney.
Steam’s revenue is also tiered, offering developers a higher split of profits depending on how popular the title in question ends up being. In theory, they’re encouraged to promote their projects through Valve.
Sweeney goes onto explain that publishers like Ubisoft, Bethesda and Electronic Arts adopting their own digital stores is a direct result of this. To put it simply, they make more money selling things themselves.
Control, World War Z and Borderlands 3 are just some of the exclusives available and coming to the Epic Games Store with timed exclusivity, and we have to imagine only more will follow.
What are your thoughts of Epic Store exclusives? Let us know on Facebook and Twitter @trustedreviews.
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Editorial independence
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
