If you were playing games on PC prior to 2019, it’s safe to say that you grabbed your game of choice through Steam. The digital distribution platform had evolved over the years, it was rich in features and it worked a treat when creating a massive library of games to buy and then forget about as you played more DOTA 2.
Along came the Epic Games Store last year, upsetting the status quo with a business model that favoured the publisher and also attracted a fair share of exclusive games along the way. The biggest spanner ever thrown into Valve’s dominance of the PC gaming market, Epic’s arrival has been both hailed as the best thing ever and criticised for a variety of reasons along the way. Has it been a profitable move for Epic so far then?
Epic’s disruption has resulted in the platform making a $680 million in gross revenue from its 108 million customers, which ain’t too shabby for a company that splits profits 88/12 with developers and publishers who host their games on those servers. “108M is the total number of Epic Games accounts which have specifically obtained the PC version of at least one product, whether free or paid,” Epic CEO Tim Sweeney said to Games Daily.
This is out of 300M total Epic accounts across all platforms including console and mobile. Epic Games Store third-party game revenue in 2019 is roughly 60% higher than our initial forecast at launch, and the pace of free game installs is several times higher than we originally expected. We are very happy with the outcome and grateful to our partners and customers.
Thanks to the tantalising offer of free weekly games on the platform, the Epic Games Store has managed to grab its fair share of customers who are ready to stick around for the long run as the digital shop attempts to grow throughout 2020. Those freebies will be a regular part of 2020 as well, with Epic compensating developers who take part in the promotion.
Graphic via Games Daily:
The overall impact of Epic then? The store may not be knocking down the gates of Steam just yet, but it has established a beachhead online that has proven to be successful thanks to their various policies. Even if online boycotts were actually effective, Epic wouldn’t be losing sleep over their storefront not making a dime, as the company is still hugely profitable in several other areas of the games industry. The EGS has its fans, a solid business strategy and plenty of exclusives lined up for 2020 that will no doubt see an increase in users and consumers.
Last Updated: January 15, 2020