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DaciaJC

Banned
Oct 29, 2017
6,685
Seems pretty simple to me:

1. Create a new Epic gift card that gives a lower percentage of a sale to the retailer
2. Sue Wal-Mart for their monopoly on gift card space inside their own store
3. ???
4. Profit

lol

Tims issue is he positioned the launch of EGS as Steam and others unfairly charging a ridiculous margin that wasn't necessary to provide the service that they do. Only to now all this time later have to admit that he cannot offer a competitive platform without those types of margins they charge.

We were told 30% wasn't needed and that 12% made more sense. And now it turns out that offering competing products like this are directly enabled by having such a margin? Which one is it? And why is it never his fault? The store is still vastly inferior but we cant give them a hard time for it because they need more time? They can't offer the services/products that competitors offer but that's not their fault and we should blame physical retailers?

How about if you cannot be competitive in the market with the same rule set that applies to your competitors then maybe you aren't a well run business. Maybe all of that patting yourself on the back about how only your margin system was fair and just was a bunch of smoke you blew up everyone's asses and now people are seeing through it when you can't offer the conveniences of your competitors. Maybe trying to hide behind "Why don't you want to see devs make more money" is a nonsense smokescreen that loses its luster after the 15th time its used as a smokescreen for an inferior product that's not improving at the expected pace.

Tim deserves every bit of shit he gets. And no its not retailers faults. If you want to harp on "They have too high a margin!" then you needs to live and execute that energy with your competing product, and they aren't. I'm sure that the issue here IS that their margins are too low, and that's exactly what the hell many of us said from the jump.

Beautiful post.
 

Dablado

Member
Jan 1, 2019
220
I did, but a gift card is nicer.
I really think it is just trouble for everyone involved.

I understand the point of gift cards only for people who cant buy the digital games in a better way, otherwise its just an inconvenience.

I didnt think any more than a few % of the revenue would come from gift cards, but if people say data shows otherwise I will believe it.
 

Asator

Member
Oct 27, 2017
904
So you're telling me that the other players are talking a higher margin because... They're providing actual services? Who would've thought.

It's almost like the 30% cut is rather sensible and a 12% cut isn't actually a business practice that one can sustainably operate a store on, like epic's court documents also show.

It's almost like the 30% minimum serves an actual meaningful purpose in this particular case.

Making it exclusively about Steam is a very Epic thing to do ...

So Tim is saying that a 12% cut is not enough to run an actual legit store that can scale upwards and provide necessary features to costumers?
Nice to finally hear him admit what we've all been saying (and seeing) for years now.

Almost as if there's reasons other stores are taking 30% (or at least more than bare minimum that in-theory turns profitable after a decade of being supported by Fortnite money). :P

Tims issue is he positioned the launch of EGS as Steam and others unfairly charging a ridiculous margin that wasn't necessary to provide the service that they do. Only to now all this time later have to admit that he cannot offer a competitive platform without those types of margins they charge.

We were told 30% wasn't needed and that 12% made more sense. And now it turns out that offering competing products like this are directly enabled by having such a margin? Which one is it? And why is it never his fault? The store is still vastly inferior but we cant give them a hard time for it because they need more time? They can't offer the services/products that competitors offer but that's not their fault and we should blame physical retailers?

How about if you cannot be competitive in the market with the same rule set that applies to your competitors then maybe you aren't a well run business. Maybe all of that patting yourself on the back about how only your margin system was fair and just was a bunch of smoke you blew up everyone's asses and now people are seeing through it when you can't offer the conveniences of your competitors. Maybe trying to hide behind "Why don't you want to see devs make more money" is a nonsense smokescreen that loses its luster after the 15th time its used as a smokescreen for an inferior product that's not improving at the expected pace.

Tim deserves every bit of shit he gets. And no its not retailers faults. If you want to harp on "They have too high a margin!" then you needs to live and execute that energy with your competing product, and they aren't. I'm sure that the issue here IS that their margins are too low, and that's exactly what the hell many of us said from the jump.

All of these posts pretty much nails it. Most of us have been saying for years that there's a reason for the 30% cut and that 12% was not really sustainable, and Timmy here just confirms it. Yet funnily enough, he makes it seems as if it's the 30% cut that is too much and not 12% that's too low. He's so disingenuous.
 

Kyougar

Cute Animal Whisperer
Member
Nov 3, 2017
9,354
Can you not buy any Steam cards at any retailer online?

I don't think I have ever checked until yesterday when I had $25 in Amazon credit

From Valve's point of view, Steam wallet cards are the main driver of getting people into the ecosystem (or holding them) that don't want or can't use digital purchases. Gifting cards (through online sales) is an afterthought.
 

AshenOne

Member
Feb 21, 2018
6,089
Pakistan
I just wanna comment regarding people questioning the 'need' for gift cards...

Thanks to gift cards I can purchase games where i live. Credit cards have issues with international transactions in Pakistan. So shit like buying in game items locally to sell it in the STEAM community market place for STEAM Wallet Money or buy STEAM Gift locally and redeem them for STEAM Wallet Funds...

Gift cards physical or digital are a massive convenience for Customers like me. It adds to the ability of me buying games and legally playing games. Its in the dev's and the pub's best interest to support that. Anyone arguing against gift cards in general has no idea how useful is its utility in Non US regions.

Gift cards regardless are a huge benefit for customers and EGS for w/e reason not getting them is a big loss for the customer. Some of Y'all talking about the gift card system being a work of its own to keep up but Epic has lots of money to burn. Why can't they invest in this critical feature instead of wasting all of their cash on exclusivity deals?
 

Chairmanchuck (另一个我)

Teyvat Traveler
Member
Oct 25, 2017
9,082
China
Gift cards regardless are a huge benefit for customers and EGS for w/e reason not getting them is a big loss for the customer. Some of Y'all talking about the gift card system being a work of its own to keep up but Epic has lots of money to burn. Why can't they invest in this critical feature instead of wasting all of their cash on exclusivity deals?

I think free games are far more important than gift cards.
 

AshenOne

Member
Feb 21, 2018
6,089
Pakistan
I think free games are far more important than gift cards.
I know you're being sarcastic but..

If you just want to give out free shit then not encourage customers to buy games on your store then sure :P
Free games are great though, for people who do not care for a convenient shopping and playing experience on PC.
If I were getting into PC gaming just now I'd love Epic game store too for its free games. Its one of a kind in that respect.
 
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Avik-G

alt account
Banned
Jul 27, 2021
849
its not so much about steam as much as it is about gift cards losing you money because you have to produce them which costs money and then sell them in store and the store has to get a cut too otherwise why would they sell them? epics cut is already low so unless they want to raise their cut theyll be losing money on giftcards just like steam already does.

even sweeney made a tweet about this


This makes sense but its Epic Games Store so we must be super mad about it anyway and call him a liar.
 

GhostTrick

Member
Oct 25, 2017
11,305
This makes sense but its Epic Games Store so we must be super mad about it anyway and call him a liar.



And people are right to be mad ?
Yes, it makes sense that a 12% margin means you cant have cards because thier own margins are already at 15%.
But why are people mad a EGS ? Because they claim you can run a store at a 12% margin and even lower in the long run without impacting the services or the customers. Which people have been saying it's false for years.

And guess what ? Yes, tim himself admits it.
 

Hektor

Community Resettler
Banned
Oct 25, 2017
9,884
Deutschland
The very owner of the Epic Games Store literally admits that their "pro developer" cut makes it harder for them to deliver a customer facing feature
"WOW PEOPLE REALLY ARE MAD AT THE EGS FOR NO REASON"

EtRhqZAXAAAPUS3.jpg
 

Hektor

Community Resettler
Banned
Oct 25, 2017
9,884
Deutschland
Regarding "the effort to make the economics work"

1. They simply eat the 3% loss.
2. They demand retailers to take a <=12% cut on these cards
3. They overcharge these cards (ex: 100€ wallet = 115€ MSRP)
4. They selectively raise the cut the EGS takes to >=15% for all purchases that were bought via gift card money
5. They raise the cut they take of everything.
6. They don't offer retail cards at all.