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.
For example, after years of great work by independent stores (excluding big publishers like EA-Activision-Ubi), none seem to have reached 5% of Steam’s scale. Nearly all have more features than Epic; and the ability to discount games is limited by various external pressures.
This leads to the strategy of exclusives which, though unpopular with dedicated Steam gamers, do work, as established by the major publisher storefronts and by the key Epic Games store releases compared to their former Steam revenue projections and their actual console sales.
In judging whether a disruptive move like this is reasonable in gaming, I suggest considering two questions: Is the solution proportionate to the problem it addresses, and are gamers likely benefit from the end goal if it’s ultimately achieved?
The 30% store tax usually exceeds the entire profits of the developer who built the game that’s sold. This is a disastrous situation for developers and publishers alike, so I believe the strategy of exclusives is proportionate to the problem.
If the Epic strategy either succeeds in building a second major storefront for PC games with an 88/12 revenue split, or even just leads other stores to significantly improve their terms, the result will be a major wave of reinvestment in game development and a lowering of costs.
Will the resulting 18% increase in developer and publisher revenue benefit gamers? Such gains are generally split among (1) reinvestment, (2) profit, and (3) price reduction. The more games are competing with each other, the more likely the proceeds are to go to (1) and (3).
So I believe this approach passes the test of ultimately benefitting gamers after game storefronts have rebalanced and developers have reinvested more of their fruits of their labor into creation rather than taxation.
Of course, there are LOTS of challenges along the way, and Epic is fully committed to solving all problems that arise for gamers are for our partners as the Epic Games store grows.
grudgebearer wrote on Jun 26, 2019, 17:33:As a consumer, you get game companies able to reinvest more money into more and/or better games.jdreyer wrote on Jun 26, 2019, 17:17:
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We've already seen one Steam change: increased revenue sharing by sales numbers. That change doesn't happen without EGS. As EGS improves and gains market share, we'll see further changes. The exclusive thing won't last forever, but will get EGS strong enough so they can compete.
So as a consumer, how are you benefiting from this?
RedEye9 wrote on Jun 26, 2019, 17:40:
Quoting facts won't make you any friends around these here parts.
saluk wrote on Jun 26, 2019, 16:57:I got all of the above plus Subnautica for free.Simon Says wrote on Jun 26, 2019, 15:49:RedEye9 wrote on Jun 26, 2019, 15:11:
Competition is good for the industry including consumers like us.
Where is that competition from EGS? Where is it right now?
And it's not like there's not already tons of other stores already. Uplay, Origin, Battlenet, Itch.io, GOG, Windows store etc.
What's the only special thing about EGS compared to the others? They bribe for exclusives, that's it... Exclusives have nothing to do with competition, it's the opposite of competition.
This argument makes zero sense and it never will.
His argument about the cut of the sales isn't either, for the reasons outlined in my previous comment's linked video in this thread which I guess I'll link again in case anyone missed it:
The Epic Narrative - The Mortiel Fallacy: May 9, 2019grudgebearer wrote on Jun 26, 2019, 15:45:
What demonstrable benefits are consumers receiving from EGS exclusivity?
None, zero, nada, zilch. Quite the opposite, it only had negative impacts.
Metro Exodus launched at 50$ instead of 60$. I got Oxenfree for free and had never heard of it - had a good time. Heavy Rain is on pc for a reasonable price for a rerelease for an old game (although who knows if, minus epic, this would have happened anyway)
Those are the tangible things I can think of for now.
jdreyer wrote on Jun 26, 2019, 17:17:Quoting facts won't make you any friends around these here parts.grudgebearer wrote on Jun 26, 2019, 15:45:RedEye9 wrote on Jun 26, 2019, 15:11:
Competition is good for the industry including consumers like us.
What demonstrable benefits are consumers receiving from EGS exclusivity?
We've already seen one Steam change: increased revenue sharing by sales numbers. That change doesn't happen without EGS. As EGS improves and gains market share, we'll see further changes. The exclusive thing won't last forever, but will get EGS strong enough so they can compete.
jdreyer wrote on Jun 26, 2019, 17:17:
[
We've already seen one Steam change: increased revenue sharing by sales numbers. That change doesn't happen without EGS. As EGS improves and gains market share, we'll see further changes. The exclusive thing won't last forever, but will get EGS strong enough so they can compete.
Beamer wrote on Jun 26, 2019, 16:59:Damn you and your calm demeanor!jdreyer wrote on Jun 26, 2019, 16:56:Burrito of Peace wrote on Jun 26, 2019, 15:34:
I am going to become irrationally angry over something that doesn't monetarily effect me and vent my spleen including pejoratives and ad hominems.
You'll fit right in here. We call this place "the internet."
How dare you say all of the internet is irrationally angry! I'm part of all of the internet, and I'm not irrationally angry!!!!!!!
grudgebearer wrote on Jun 26, 2019, 15:45:RedEye9 wrote on Jun 26, 2019, 15:11:
Competition is good for the industry including consumers like us.
What demonstrable benefits are consumers receiving from EGS exclusivity?
Beamer wrote on Jun 26, 2019, 16:58:
"Full game" is kind of a weasely term. How many games actually needed the DLC, or in most cases, were even improved by it? Fallout 3, I'd say. Can't think of another.
DLC is almost always coming from a second budget. The game released is the full game, the DLC is budgeted separately and often done by different teams. It's outside the scope, and even in the 90s would not have been included.
Ignoring full expansions, because we've always had those, what else actually completed a game, instead of adding either more of the same or, in some cases, lesser versions of content already in the game (looking at you, pirate-and-jungle themed expansions for Borderlands 2.) Most of this stuff is also completed months after launch.
jdreyer wrote on Jun 26, 2019, 16:56:Burrito of Peace wrote on Jun 26, 2019, 15:34:
I am going to become irrationally angry over something that doesn't monetarily effect me and vent my spleen including pejoratives and ad hominems.
You'll fit right in here. We call this place "the internet."
grudgebearer wrote on Jun 26, 2019, 16:44:jdreyer wrote on Jun 26, 2019, 16:28:
Today a AAA game is $60. In 1999, it was $50. However, $50 in 1999 is the same as $75 today. So AAA games are in fact cheaper than they were 20 years ago, and get relatively cheaper every year.
How many AAA games that come out now are really $60.00 for the full game? How many of them don't immediately have season passes and/or day 1 DLCs available?
In 2019, for $60.00, you get the base game when it comes to AAA games, and that's it. You can play just the base game, but let's not pretend that you are getting the full experience for $60 and that content hasn't been carved out as DLC that's going to cost you an extra $20-$50.
Tack on some loot boxes or an in-game storefront, and get yourself some "recurrent user spending" which didn't exist in 1999, and you have a completely different gaming sales paradigm.
Simon Says wrote on Jun 26, 2019, 15:49:RedEye9 wrote on Jun 26, 2019, 15:11:
Competition is good for the industry including consumers like us.
Where is that competition from EGS? Where is it right now?
And it's not like there's not already tons of other stores already. Uplay, Origin, Battlenet, Itch.io, GOG, Windows store etc.
What's the only special thing about EGS compared to the others? They bribe for exclusives, that's it... Exclusives have nothing to do with competition, it's the opposite of competition.
This argument makes zero sense and it never will.
His argument about the cut of the sales isn't either, for the reasons outlined in my previous comment's linked video in this thread which I guess I'll link again in case anyone missed it:
The Epic Narrative - The Mortiel Fallacy: May 9, 2019grudgebearer wrote on Jun 26, 2019, 15:45:
What demonstrable benefits are consumers receiving from EGS exclusivity?
None, zero, nada, zilch. Quite the opposite, it only had negative impacts.
Burrito of Peace wrote on Jun 26, 2019, 15:34:
I am going to become irrationally angry over something that doesn't monetarily effect me and vent my spleen including pejoratives and ad hominems.
Avus wrote on Jun 26, 2019, 15:06:Ah, yes, let's go back to the good old days of retail, when we had very few games, and mostly from big publishers. And all games were $50-60 always. Those were the days. Retail took 50%.
I DON'T CARE how much game developer % cut when I buy game. It is fxxking stupid for consumer to care about this. I as a gamer (consumer) only care if I can buy this game with a great price, software quality, post support, digital store features...
If a game developer cannot survive with 30% digital store cut, too bad, it is on the dev management. There are many dev don't make profit with 30% cut but there are also MANY can. Try go back to good old retail route and see how far can you go...
When you buy your Big Mac, Ford Mustang, Samsung TV do you fxxking care how much profit the food suppliers, automaker or Samsung actually made?? I would care about PRICE, store/sales quality and support instead. When fanboys come to game, they just throw their logic out the windows. This is why all these AAA dev made so much $$ off them by DLC, lootbox. Their favorite dev never wrong...
You can hate Valve for many things, but complain them taking 30% from dev is the most stupid.
MoreLuckThanSkill wrote on Jun 26, 2019, 15:02:
Are these going to be the new Star Citizen threads?![]()
Personal opinions: exclusives are bullshit tactics that only harm consumers, whether it's a hardware or software platform exclusive. Epic seems to be staffed with a bunch of assholes, at least at the top.
jdreyer: No offense, but I think you're a little off:Except that Steam won't let you sell for a different price on a different store. Exclusives are the only way that happens.
I've bought plenty of games on Gog, that are also on Steam, that are at least TEMPORARILY discounted on Gog only. Gog doesn't even run their sales at the same time as Steam anymore. Unless you're referring to some listed non-sale price fine print somewhere, which wouldn't surprise me.![]()
Mordhaus wrote on Jun 26, 2019, 14:22:
And let's all remember, the money that Epic is using to fund this expedition are from the vanity sales in a game mode they pretty much ripped off from pubg.
Fortnite was a struggling zombie survival game when PUBG was released "early access" in March 2017. PUBG quickly became the most popular PC game in the world and most popular game ever on Twitch at the time.
September 2017: Fortnite introduced a new game mode, Battle Royale, based on PUBG's format: 100 players, airship over the map, play zones that get smaller, crate drops, medkits and bandages, squad members getting "knocked out", etc.
Today: Tweets explaining how copying something is better for all of us...
Parallax Abstraction wrote on Jun 26, 2019, 14:59:jdreyer wrote on Jun 26, 2019, 14:42:
You can't sell for $45 on EGS and $60 elsewhere.
What about the exclusives then? Because that hasn't been happening with them either. Epic is asking us to use a feature barren, insecure store and literally offering no incentive to do so beyond "The devs get more money" (which shouldn't be the consumer's concern) or "It'll lead to lower prices maybe" (which it hasn't.)
You compete by doing things better than the other guy, not by spending the money you could be using to do that, to bribe other companies in an attempt to strongarm your way into a market you aren't prepared for.
jdreyer wrote on Jun 26, 2019, 16:28:
Today a AAA game is $60. In 1999, it was $50. However, $50 in 1999 is the same as $75 today. So AAA games are in fact cheaper than they were 20 years ago, and get relatively cheaper every year.