MoreLuckThanSkill wrote on May 17, 2020, 15:50:
Epic is pulling an Amazon; they'll probably be 'losing' money through the EGS for years, but not care at all, as long as they get customers onto the platform and get some familiarity, and the Fortnite kids keep spending thousands on cosmetics. Plus, a certain percentage of EGS users are actually buying games on the platform now.
My understanding is that unlike dot-coms with nebulous business models, Amazon makes plenty of revenue. The're not losing money because of razor-thin profit margins. They just invest almost everything back into the company -- data centers, warehouses, etc. I feel like, in contrast, Epic has more of the classic dot-com "-> ??? -> Profit!" going on.
On the other other hand, my impression is that it doesn't cost a lot to run a feature-thin storefront. I don't see sites like GOG or itch.io collapsing left and right just because they're not as popular as Steam. So I think EGS could just coast along after the exclusives push peters out.