In the competitive arena of digital game distribution, Epic Games Store has burst onto the scene with the promise of free titles and exclusive deals to challenge Valve’s dominant Steam platform.
Despite entering the fray in 2018 with the backing of Fortnite’s success, Epic’s storefront has struggled to match the entrenched position of Steam. As Epic Games Store approaches its half-decade mark, it’s increasingly apparent that its strategy, while disruptive, hasn’t been enough to outmaneuver Steam’s comprehensive ecosystem.
Epic’s ambitious tactics have included snapping up exclusives and showering gamers with no-cost blockbuster games like GTA V. The strategy aimed to shift the balance, luring players and developers alike with more favorable conditions. However, the long-term effects of this strategy have been questioned quite a lot.
Epic Games Store fails to turn a profit even after 5 Years
Four years into the digital storefront fray, the Epic Games Store finds itself in a perplexing predicament—still operating at a loss. It’s an unexpected narrative for Epic, which has tried to woo gamers with a plethora of free games and exclusive early releases. The aim was to carve a niche against Steam, but financial success remains a distant milestone.
Epic’s expensive war with Valve over PC gamers’ cash still hasn’t paid off, according to reports from their current court case versus Google. https://t.co/N3FglY5rmv pic.twitter.com/0loUbeREXq
— IGN (@IGN) November 8, 2023
Revelations from court proceedings have peeled back the curtain on Epic’s hefty investments in exclusive deals, revealing a stark absence of profit in return. It’s a sobering reality that questions the long-term viability of their market strategy.
This financial conundrum is even more pronounced when you consider that Epic’s efforts haven’t significantly shaken Steam’s colossal user base. Four years in, and the profit margins are still in the red, suggesting that Epic’s bold moves haven’t quite resonated with the gaming community as hoped.
How is Epic Games Store doing against Steam?
Epic has made some headway with its developer-centric revenue model, offering a generous 88% cut to game makers, they have even released the First Run Programme, which will trade a 100% revenue for PC exclusivity. This move by Epic has been a game-changer for developers, though it hasn’t necessarily translated into direct savings for gamers.
Epic Games Store launched in 2018 with an 88% / 12% revenue split. Now developers can also choose a new option: launch your PC game on EGS first for 6 months for a 100% / 0% revenue split. Devs earn more money, Epic reaches new customers, everyone wins.https://t.co/T2GJAkwy1g
— Tim Sweeney (@TimSweeneyEpic) August 23, 2023
When it comes to features, however, Steam still runs circles around Epic. With a robust platform that’s been refined over nearly two decades, Steam offers an ecosystem rich with user reviews, personalized discovery, and a bustling in-game item marketplace. These features have cemented Steam’s place at the top, making it the go-to digital gaming hub.
Despite a valiant effort to build a loyal following with exclusive games and freebies, the Epic Games Store hasn’t managed to outpace Steam’s deep-rooted presence and extensive offerings. Steam’s staggering user engagement levels present a formidable challenge for Epic as it vies for a larger slice of the gaming pie.
In wrapping up, the narrative of the Epic Games Store is one of ambition and a relentless push for market disruption. Yet, the reality remains that no amount of generosity with revenue splits or free game drops has been enough to usurp Steam’s throne. The ongoing tussle for digital distribution dominance is far from over, but for now, Steam continues to reign supreme with a service that deeply resonates with gamers worldwide.