Not always favored by the PC gaming community, the Epic Games Store’s policy of investing in exclusives was defended last Tuesday (25) by the company’s CEO, Tim Sweeney. On Twitter, he explained that this is the only way the store has to get space and change the 70/30 profit share implemented by Steam and other similar options.
According to Sweeney, no other store has managed to gain a share of more than 5% of the market, most of which have more resources than the Epic Games Store, but are limited in their ability to offer discounts. “This led to the exclusivity strategy that, while unpopular with dedicated Steam players, works, as established by major publishers and Epic Games Store releases compared to their previous Steam sales projections and console sales.”
The executive defended that players will benefit in the long term with the strategy of his store and that the current model, which yields 30% of the revenue for the space in which a game is sold, is often greater than the profit that the developers succeed. He argues that the Epic Games Store’s 88/12 model will lead to reinvestments, more profits and cost reductions, which should benefit both developers and consumers.
This question gets to the core of Epic’s strategy for competing with dominant storefronts. We believe exclusives are the only strategy that will change the 70/30 status quo at a large enough scale to permanently affect the whole game industry.
– Tim Sweeney (@TimSweeneyEpic) June 25, 2019
“So, I believe that this decision passes the test of benefiting the players after the stores change the balance and the developers reinvest more of the fruits of their work in creating, instead of taxing. Of course, there are MANY challenges along the way and Epic is fully committed to solving all problems that arise for players and our partners as the Epic Games Store grows, ”concluded Sweeney.
In other words, the executive says that his store’s strategy is not necessarily a way to increase sales made by it, but rather to change the way the industry as a whole works. While media like Discord have already made changes to their revenue divisions, so far Steam, a big name in the market, has not made many moves in this direction.