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Control Exclusivity Cost Epic $10M+?

Market Analyst Daniel Ahmad tweets about an Italian Financial Statement that seems to show just how much cash Epic Games had to fork over to make Control an Epic Games Store exclusive (thanks PCGamesN). He says this shows a payment to the parent company of 505 Games for €9.49 million ($10.5M USD). A response tweet from Danilo helps confirm the conclusion with some further translation: "It is explicitly stated in the report that the earnings from Control are derived from the digital marketplace that requested exclusivity for its distribution." Here are Ahmad's two tweets on the topic:

Digital Bros, parent company of 505 Games, has disclosed that they received a payment of 9.49 million euro from Epic Games for Control.

Which I would imagine is for exclusivity.

55% of that payment going to 505 Games.

Report here: https://digitalbros.com/wp-content/upl...
[…]
Yep. The payment from Epic was 100% for Control and was for the exclusivity deal. There was no payment from Sony or Microsoft.

Unclear if there were any other strings attached to the payment, other than exclusivity ofc.

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28 Replies. 2 pages. Viewing page 1.
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28. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 18:11 Kxmode
 
necrosis wrote on Sep 21, 2019, 01:25:
Cutter wrote on Sep 20, 2019, 20:20:
It doesn't matter how much Epic is paying it matters if they - devs - would have sold more without the exclusive. Meh, whatevs, 10 mil for a game to sit around for a year while they polish it and sell the 'finished' version everywhere else for cheaper later on? I'm fine with that as Epic seems to be fine with wasting its money.

There is that but there is also the fact byt the time it hits Steam (at least I) how many will actually give a shit about the game? I already care little about Metro anymore.

Also I would not be surprised if these dumb asses try and sell it on steam for $60 because it is "new". They did this shit with console games when they came to PC (even years) after they were on console.

It'll flop on Steam if they charge full-price. That would be the proverbial salt on the wound.
 
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William Shakespeare's "Star Wars" Act I, Scene 1: Aboard the rebel ship. / Enter C-3PO and R2-D2. / C-3PO: "Now is the summer of our happiness / Made winter by this sudden, fierce attack!" / R2-D2 — Beep beep, Beep, beep, meep, squeak, beep, whee!
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27. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 13:21 Riahderymnmaddog
 
MacLeod wrote on Sep 21, 2019, 07:10:
I'm figuring it won't even hit the 200,000 copies needed to start making more money on a PC either. NPD doesn't have it on the list of either top software sales or top PS4 software sales for August, and it didn't make the top 20 PS4 Store digital sales list for August either, so I'm sure PC didn't sell either. (by comparison, Man of Medan, which released August 30th, made both lists - albeit at at positions 19 and 20 respectively)

I do feel like marketing is part of the reason, as you barely saw any for this game. It's a shame, it's an enjoyable game with an interesting story (one of the few that I finished completely, with all collectibles, etc). I really wanted Remedy to get a huge hit, so maybe we could get a full fledged Alan Wake sequel... guess I'm just going to have to settle for the AW Control DLC instead.

Not a bad deal then, if they only sell one copy or 199,999 they make 10mm, if they sell 200,001 copies then they make 10,000,040. Seems like a ballsy move on Epics part.
 
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26. Re: Borderlands 3's Successful, Buggy Launch Sep 21, 2019, 12:31 RedEye9
 
Dev wrote on Sep 21, 2019, 12:20:
SabreT wrote on Sep 21, 2019, 11:36:
licensedsaucer9 wrote on Sep 21, 2019, 10:50:
SabreT wrote on Sep 21, 2019, 10:45:
Wish all the uniformed parrots thinking that Fortnite is Epic's main source of revenue would just shut up. Do a bit of research yourself ffs.

I am aware that Epic have other revenue streams, but it is news to me that Fortnite is not the main one. Do you have any more information? I found this https://www.telegraph.co.uk/gaming/news/fortnite-earned-annual-revenue-game-history-2018/ but it is not current.

www.cnbc.com/2018/12/14/the-reason-epic-landed-a-15-billion-valuation-is-not-fortnite-success.html
All that says is that there's a lot of hope around using unreal engine in other non gaming sectors in the future... nothing concrete yet.

However, it did mention something I found interesting, PUBG is paying them a percentage in royalties of all sales because they use unreal engine! LOL
https://www.unrealengine.com/en-US/industries
The Unreal engine just about everywhere.
I sat thru a video walkthrough of an assisted living center 6 years ago and thought "Gee, That Looks Familiar," sure enough it was made with the unreal engine.

You probably missed where it said UE had 7 million users (naturally not all 7 million will be a huge payoff).
Or that Epic snagged $1.25 billion from venture and private equity leaders Kleiner Perkins and KKR.
LOL
 
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“If the facts are against you, argue the law. If the law is against you, argue the facts. If the law and the facts are against you, pound the table and yell like hell.”
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25. Re: Borderlands 3's Successful, Buggy Launch Sep 21, 2019, 12:26 SabreT
 
Epic was a multi-billion dollar company long before Fortnite. They are a graphic engine company that makes games to promote their engines, they have been doing that for decades.

[url=]https://en.wikipedia.org/wiki/List_of_Unreal_Engine_games[/url]
 
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24. Re: Borderlands 3's Successful, Buggy Launch Sep 21, 2019, 12:20 Dev
 
SabreT wrote on Sep 21, 2019, 11:36:
licensedsaucer9 wrote on Sep 21, 2019, 10:50:
SabreT wrote on Sep 21, 2019, 10:45:
Wish all the uniformed parrots thinking that Fortnite is Epic's main source of revenue would just shut up. Do a bit of research yourself ffs.

I am aware that Epic have other revenue streams, but it is news to me that Fortnite is not the main one. Do you have any more information? I found this https://www.telegraph.co.uk/gaming/news/fortnite-earned-annual-revenue-game-history-2018/ but it is not current.

www.cnbc.com/2018/12/14/the-reason-epic-landed-a-15-billion-valuation-is-not-fortnite-success.html
All that says is that there's a lot of hope around using unreal engine in other non gaming sectors in the future... nothing concrete yet.

However, it did mention something I found interesting, PUBG is paying them a percentage in royalties of all sales because they use unreal engine! LOL
 
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23. Re: Borderlands 3's Successful, Buggy Launch Sep 21, 2019, 12:01 RedEye9
 
SabreT wrote on Sep 21, 2019, 11:36:
licensedsaucer9 wrote on Sep 21, 2019, 10:50:
SabreT wrote on Sep 21, 2019, 10:45:
Wish all the uniformed parrots thinking that Fortnite is Epic's main source of revenue would just shut up. Do a bit of research yourself ffs.

I am aware that Epic have other revenue streams, but it is news to me that Fortnite is not the main one. Do you have any more information? I found this https://www.telegraph.co.uk/gaming/news/fortnite-earned-annual-revenue-game-history-2018/ but it is not current.

www.cnbc.com/2018/12/14/the-reason-epic-landed-a-15-billion-valuation-is-not-fortnite-success.html
The tales of EPIC's demise may be exaggerated. Wink
 
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“If the facts are against you, argue the law. If the law is against you, argue the facts. If the law and the facts are against you, pound the table and yell like hell.”
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22. Re: Borderlands 3's Successful, Buggy Launch Sep 21, 2019, 11:36 SabreT
 
licensedsaucer9 wrote on Sep 21, 2019, 10:50:
SabreT wrote on Sep 21, 2019, 10:45:
Wish all the uniformed parrots thinking that Fortnite is Epic's main source of revenue would just shut up. Do a bit of research yourself ffs.

I am aware that Epic have other revenue streams, but it is news to me that Fortnite is not the main one. Do you have any more information? I found this https://www.telegraph.co.uk/gaming/news/fortnite-earned-annual-revenue-game-history-2018/ but it is not current.

www.cnbc.com/2018/12/14/the-reason-epic-landed-a-15-billion-valuation-is-not-fortnite-success.html
 
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21. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 11:01 licensedsaucer9
 
Icewind wrote on Sep 21, 2019, 03:14:
Can't wait for Metro Exodus this upcoming February.

Metro Exodus is available on Xbox Game Pass for PC (quite a mouthfull) which is in beta currently and only costs 4 USD per month. Quite a few games included, also Gears 5. Worth a couple of months in my opinion even though I didn't end up liking Gears.
 
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20. Re: Borderlands 3's Successful, Buggy Launch Sep 21, 2019, 10:50 licensedsaucer9
 
SabreT wrote on Sep 21, 2019, 10:45:
Wish all the uniformed parrots thinking that Fortnite is Epic's main source of revenue would just shut up. Do a bit of research yourself ffs.

I am aware that Epic have other revenue streams, but it is news to me that Fortnite is not the main one. Do you have any more information? I found this https://www.telegraph.co.uk/gaming/news/fortnite-earned-annual-revenue-game-history-2018/ but it is not current.
 
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19. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 10:45 licensedsaucer9
 
A "market analyst" should know this, but there are a number of alternatives to this being an "exclusivity lump sum" that are a lot more realistic.

Most likely this is a milestone payment that will be shortened against future sales (or preorders existing at that time). Obviously Epic is giving something for the exclusivity, but 10M EUR makes little sense. Prepayment for sales, a guaranteed minimum number of copies sold and preferential treatment for a while is much more likely than a huge lump sum.

I'm not saying Epic couldn't afford it, but it just makes zero sense.

Btw, this isn't just me guessing, it has been reported before that Epic has guaranteed sales numbers in return for exclusivity (for ooblets and phoenix point).

This concept makes more sense for Epic, because if they can help the game succeed they end up not actually paying that much for the exclusivity. It also makes sense for the developer since they also have incentive to make the game succeed, which a lump sum payment would not really contribute to even if it pays the bills.
 
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18. Re: Borderlands 3's Successful, Buggy Launch Sep 21, 2019, 10:45 SabreT
 
Icewind wrote on Sep 21, 2019, 03:14:
When Fortnite ends up like all the other competitive online shooters "AKA: Flavors of the moment" (Action quake, TF2, Overwatch, etc) they won't be able to do this anymore.

Works good for the devs, though. They get paid to subject Epic's user base to what amounts to an early access game and get to test patches so that the official release on Steam/GOG a year later comes pre-tested.

Can't wait for Metro Exodus this upcoming February.

Wish all the uniformed parrots thinking that Fortnite is Epic's main source of revenue would just shut up. Do a bit of research yourself ffs.
 
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17. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 10:41 Creston
 
60 dollar game of which they make 12%, but per Tim Sweeney, after taking costs etc into consideration, they make "a few percent" of profit. So let's be generous and give them 5% of profit.

10.5M/(60*0.05)= 3.5 million copies to break even. For a Remedy game on the PC.

Good luck with that...

 
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16. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 08:36 HoSpanky
 
This isn't news. The REAL question is: How much did Epic pay for the exclusivity for Untitled Goose Game?  
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15. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 07:48 TheEmissary
 
MacLeod wrote on Sep 21, 2019, 07:10:
I'm figuring it won't even hit the 200,000 copies needed to start making more money on a PC either. NPD doesn't have it on the list of either top software sales or top PS4 software sales for August, and it didn't make the top 20 PS4 Store digital sales list for August either, so I'm sure PC didn't sell either. (by comparison, Man of Medan, which released August 30th, made both lists - albeit at at positions 19 and 20 respectively)

I do feel like marketing is part of the reason, as you barely saw any for this game. It's a shame, it's an enjoyable game with an interesting story (one of the few that I finished completely, with all collectibles, etc). I really wanted Remedy to get a huge hit, so maybe we could get a full fledged Alan Wake sequel... guess I'm just going to have to settle for the AW Control DLC instead.

A good portion of the Control install base on PC probably got it as part of the NVidia promotion for new GPUs. That is how I ended up with a copy of the game. I didn't seek out or buy the game directly.
 
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14. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 07:36 Bumpy
 
Epic and their 3rd party exclusives can go pound sand. Don't want and don't care.

If the games still even interests me, I can wait many years for a $5 dollar sale if need be.
 
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13. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 07:10 MacLeod
 
I'm figuring it won't even hit the 200,000 copies needed to start making more money on a PC either. NPD doesn't have it on the list of either top software sales or top PS4 software sales for August, and it didn't make the top 20 PS4 Store digital sales list for August either, so I'm sure PC didn't sell either. (by comparison, Man of Medan, which released August 30th, made both lists - albeit at at positions 19 and 20 respectively)

I do feel like marketing is part of the reason, as you barely saw any for this game. It's a shame, it's an enjoyable game with an interesting story (one of the few that I finished completely, with all collectibles, etc). I really wanted Remedy to get a huge hit, so maybe we could get a full fledged Alan Wake sequel... guess I'm just going to have to settle for the AW Control DLC instead.
 
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12. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 03:14 Icewind
 
When Fortnite ends up like all the other competitive online shooters "AKA: Flavors of the moment" (Action quake, TF2, Overwatch, etc) they won't be able to do this anymore.

Works good for the devs, though. They get paid to subject Epic's user base to what amounts to an early access game and get to test patches so that the official release on Steam/GOG a year later comes pre-tested.

Can't wait for Metro Exodus this upcoming February.
 
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11. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 02:44 Slick
 
RedEye9 wrote on Sep 20, 2019, 22:19:
Tautology 101 Pokestick


I see what you did there
 
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10. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 02:04 jdreyer
 
Simon Says wrote on Sep 20, 2019, 21:22:
LOL... that bribe!

Probably a similar amount for BL3. Bigger game, but shorter window.
 
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The land in Minecraft is flat, Minecraft simulates the Earth, ergo the Earth is flat.
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9. Re: Control Exclusivity Cost Epic $10M+? Sep 21, 2019, 01:35 Rhett
 
necrosis wrote on Sep 21, 2019, 01:25:
Cutter wrote on Sep 20, 2019, 20:20:
It doesn't matter how much Epic is paying it matters if they - devs - would have sold more without the exclusive. Meh, whatevs, 10 mil for a game to sit around for a year while they polish it and sell the 'finished' version everywhere else for cheaper later on? I'm fine with that as Epic seems to be fine with wasting its money.

There is that but there is also the fact byt the time it hits Steam (at least I) how many will actually give a shit about the game? I already care little about Metro anymore.

Also I would not be surprised if these dumb asses try and sell it on steam for $60 because it is "new". They did this shit with console games when they came to PC (even years) after they were on console.

I'm expecting this too (full price). There's been practically zero sales, or very meager sales, on ANYTHING related to EGS since they started doing this exclusivity shit. Preorder sales/GMG and such. So I can't expect them to not try to pull that, depending on the publisher.

But yeah, people are probably not going to care by then, or just wait for fully patched, DLC-complete games at a discount at that point.
 
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