Tim Sweeney on EGS' Impact

A lengthy series of tweets from Tim Sweeney looks to address some of the concerns gamers have expressed over Epic Games Store exclusives and other issues:
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.
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Re: Tim Sweeney on EGS' Impact
Jun 26, 2019, 12:52
Verno
 
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Re: Tim Sweeney on EGS' Impact Jun 26, 2019, 12:52
Jun 26, 2019, 12:52
 Verno
 
18% isn't going to be sufficient and Sweeney already said as much previously. There is a reason he won't commit to this revenue split going forward, they are just trying to gain marketshare and it was always intended to be temporary. How fucking generous of him to speak for all gamers out there and claim that this is some big benefit. From where I sit this is no benefit at all, objectively it is a worse situation than having a product be sold on multiple storefronts.

Also as a gamer I don't really care about revenue splits, that shit does not matter to me. I don't care if the developer or publisher makes more money, they sell me a product, not shares in the fucking company. This is just silly PR.
Playing: Xenoblade Chronicles DE, Ys IX, God of War
Watching: Lupin, You me and the Apocalypse, Days of Thunder
Avatar 51617
3.
 
Re: Tim Sweeney on EGS' Impact
Jun 26, 2019, 12:43
3.
Re: Tim Sweeney on EGS' Impact Jun 26, 2019, 12:43
Jun 26, 2019, 12:43
 
Want to break the 30% standard?

Better start competing with Sony, Microsoft and Nintendo on their platforms too, because they all use that standard!

The moment games start selling for $45 on EGS, while they are $60 everywhere else - because EGS takes a smaller piece of the pie - is the moment I'll believe any of this bullshit and install the software.

But we all know that's never going to happen.
Avatar 17499
2.
 
Re: Tim Sweeney on EGS' Impact
Jun 26, 2019, 12:37
2.
Re: Tim Sweeney on EGS' Impact Jun 26, 2019, 12:37
Jun 26, 2019, 12:37
 
So basically, here's a bunch of bullshit to put more money into publishers hands and trying to make the gamers think it's better for them.

Riiiiight...

So far, none of this actually benefits the gamers.
Avatar 57660
1.
 
Re: Tim Sweeney on EGS' Impact
Jun 26, 2019, 12:21
1.
Re: Tim Sweeney on EGS' Impact Jun 26, 2019, 12:21
Jun 26, 2019, 12:21
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