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Superhot story explained7/10/2023 ![]() Epic Games says that the monthly average active users on the store are 56 million, and though that is a far cry from Steam's 120 million active monthly users, it is a big jump from 2019's average of 32 million.Įpic Games reported sales revenue of $700 million in 2020, of which about $265 million was spent on third-party games. "Like Netflix and so on, the goal is to get max eyeballs and hours of use, and the assumption is that will translate into low churn rates over time, which is critical to running a profitable subscription service. It also brings in a lot of revenue for the company through microtransactions and other purchases.įor subscription services like Xbox Live Gold and PlayStation Plus, the included games add up and help keep gamers using the service. While it looks like Epic is leaving a lot of money behind (and offering plenty for developers using its platform) they seem to have plenty to cover their costs.ĭon't forget, Epic also has Fortnite bringing in millions of users, with PC gamers having to use their store to download and launch the game. In comparison, Valve has a tiered system for revenue cuts, taking 30% when the game launches, then taking 25% after the game has earned $10 million, and then 20% when the game earns over $50 million. If a game developer uses the Unreal Engine (made by Epic Games) they will also cover the 5 percent engine royalty for sales on the Epic Games store. "Epic is basically buying market share through free/discounted games and its low (12%) revenue cut on store sales," he added. "Obviously Epic has been able to do that so far, and the result is that they've had to bite the bullet on turning a profit in terms of the store itself." "If you're going to challenge an established and respected incumbent like Steam, you've got to do something that's going to bring over developers and gamers to your store that's out of the ordinary," explained Ward. To compete with the giant that is Steam, Epic has to get the gamer's attention. "In recent years, the unofficial Steam store in China has also been a huge hit and helped propel Steam's worldwide growth in users (although the revenue stream from China isn't as large as the Chinese user base suggests)." Getting Gamers On Board "Valve really listens to its users and while the company isn't perfect, it's made a lot of smart decisions, and it doesn't hurt that Gabe is a bit of an iconoclast," said Ward. Over the years, Steam gained new features like community pages, friends lists, support for mods and even remote play. By now, every PC gamer practically assumes that a game will be available on Valve's platform. Steam isn't giving up many free games because they don't have to buy new users to its platform. "Obviously it doesn't hurt that DOTA 2 and other Valve games and franchises like Counter Strike: Global Offensive, Half-Life and Left 4 Dead have been massive, often exclusive hits over the years." "Steam debuted in 2003 and so they've established a long track record of doing right by PC gamers," said Ward. When it comes to PC gaming, there is a pretty big player to compete with: Steam. "It takes years of commitment and deep pockets." Topping the Establishment "Launching and operating a digital game store is not for the faint of heart," said Lewis Ward, Director of Gaming, eSports and VR/AR at IDC. While free games are always hard to turn down, we have to ask how this is a valid business strategy for these platforms? And should gamers worry? ![]() IndieGala offers free games regularly, as does the Humble Store and GOG. The Epic Games Store isn't the only one giving stuff away. And alongside the big-budget games are critically acclaimed indie titles like Superhot, Hyper Light Drifter, Limbo and The Messenger, presenting plenty of high-quality gaming at a price that's hard to beat. ![]() It's not every day that you can get a free AAA game like GTA 5, Batman Arkham Knight or Star Wars Battlefront II, but thanks to weekly Epic Games Store giveaways, gamers' libraries are bursting with great titles.
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