JohnBirshire wrote on Jan 29, 2022, 03:37:
It's just anecdotal, but judging by the 1,000's of reddit comments many posts about it generate, going with the anti-consumer exclusivity strategy was a PR disaster for Epic. Although they generate revenue from it, it's hard to quantify the end result given the fact you have to compare it to how much they pay for the exclusive rights in addition to how many consumers chose to permanently boycott their platform because of them.
Epic is investing. The losses are calculated. As Sweeney pointed out before, he does not expect the EGS to turn a profit before 2024. They are in the building a business phase and, whether people like it or not, they have been very successful at it so far.
Look at GOG for comparison. GOG has been around since 2008 and it has almost 6,000 games from over 800 partners on sale. Their annual revenue is usually about $40 million (it was ~$80 million in 2020 only because of Cyberpunk - see page 35
) and GOG post losses.
GOG has launched the Galaxy 2.0 client not too long ago but that has apparently had a near zero effect on their revenue. GOG are having sales all of the time and, while not weekly, they are giving away games on a regular basis, too.
GOG does not seem to report the split between CD Projekt and 3rd party sales anymore but here is a chart
up to the year 2017. Their 3rd party sales are maybe $25 million to $30 million of the $40 million total revenue at most.
If we compare this to Epic who have launched their store in late 2018, a good decade later than GOG, and who have a catalog of only 917 titles (about 15% of GOG's) while they make 3rd party revenues that are now at least 10x as much as GOG's, well, what does that tell us? Their third party exclusivity strategy and their entire marketing campaign is a smashing success, like it or not.
The vocal minority of Redditors is vocal and minor. The vast majority of gamers buy their games when they want to play them from whatever source is offering the game. Epic would never even be close to their reported numbers without their exclusives and coupons. They'd probably be smaller than GOG because they have the smaller catalog, a less feature-rich client and no 10 years+ of experience running a storefront. Why would they be bigger than GOG after only three years if they did not have the exclusives? There is no reason. The exclusives are working great for Epic.