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New court filing shows Epic has lost more than $450 Million on the EGS in the past 2 years and other interesting facts
- Thread starter CommodoreKong
- Start date
OP
OP
Yeah I always never play freebies since if they get to that point I've probably already bought the game if I'm interested in it. I imagine you see people with less disposable income play freebies more often.
People acting like pissing away 500 million is normal for a company. Especially on something like EGS where all the money doesn't appear to be doing anything whatsoever. Just look at the thread that discussed the public numbers Epic put out for the year 2020. What the hell has has half a billion dollars gotten them?
www.resetera.com
Epic Games Store 2020 Year in Review
https://www.epicgames.com/store/en-US/news/epic-games-store-2020-year-in-review Compare that to last year https://www.epicgames.com/store/en-US/news/epic-games-store-weekly-free-games-in-2020
www.resetera.com
12% covers the operating cost, but what profit are they making from that? Presumably the answer is not a lot seeing as they're not willing to swallow some payment fees like other stores do, so the question is then going to become how much will it eventually get bumped by. That 12% has been a decent hammer to have a go at other stores' fees but I can't see it staying that low.
The problem is that EGS didn't had any growth during COVID, when every platform achieved new records. Game Pass is losing money but is getting a lot of new users, EGS isn't.
Maybe because they just make Steam users wait a year to play some games?
Because they certainly aren't "changing habits" according to EGS itself.
Talk about fucking hand waving. To say that it happens to so few is being disingenuous at best. The fact that MS and Xbox is pushing it so hard and this is built into so many machines (because it's built into Windows 10), it's not a small number. Even if you say 10% of people are affected by the W10 Store issues with programs, that can still amount to millions of people. But you know...
I mean, I'm pretty much dismissing anyone with issues where the root is in not staying up to date or using delivery optimization which functions as intended though I obviously don't use it which leaves who left? People that want to get into encrypted games? Yeah, I can pretty much handwave it as irrelevant.
One way or another, Epic will need to convince a lot of people to start buying games on EGS that aren't exclusive and aren't being sold at a loss. As it stands, that's going to be difficult.
That's been happening forever in videogames, why is it different now?
I mean, they can keep it so long as they make no effort to develop the platform and kill coupons.
They can't change it because it's all they have going for their store. Right now, Epic isn't in it for the profitability. They're just trying to displace Steam even a little and ensure that for future PC players Epic is as established a name as Steam is today.
Because it's exacly the same platform. And sometimes the games already had Steam pages, used Steam features or day 1 keys were promised on KS (it really hurted Shenmue 3 on PC).
Literally on their website.
"What's the catch? Is this 88% revenue share a special introductory rate?
There is no catch; the 88% share to the developer is the permanent rate. Epic's 12% share covers the operating costs of the store and makes us a profit."
Publish Apps, Games and Software on the Epic Games Store.
Learn how to publish apps, games and software on the Epic Games Store to access over 100M players on PC and Mac.
www.epicgames.com
Armchair business analysts doing the most.
Sure, this happens on consoles as well. Games announced for all platforms and then platforms "mysteriously" disappear and show back up a year or so later after release. You just don't like "exclusives?"
I've had to get into those folders due to the delivery method of the W10 Store being a piece of shit. I've had at least two separate instances where the W10 store refused to install or uninstall a program properly. To the point where I've had to go search in that secure folder to specifically delete that folder to be able to install the game again. I've also had a game where the W10 Store version literally uninstalled all local data files twice without me knowing or wanting to do so. So if we're talking about delivery optimization, W10 Store has a bunch of issues. And I'm someone who updated all Windows update files and drivers.
To add a bit more, I'm glad GP is on PC and it's a good alternative, but when the thing it's based on to work (specifically on PC and more specifically W10 Store) doesn't work properly all the time and causes different issues, then it's not cool to just hand wave it. If it works for you or someone else, all good to you, but that doesn't lessen the myriad of issues it still and always has had.
Yeah, and people have the right to not buy the games until they are on their favorite platform. I don't like exclusives on PC, I know they are important for consoles sales.
It doesn't unless happen on consoles unless there's alternative stores on PlayStation itself that sells games without trophies, or PSN. Console exclusivity one way or another either means you get the benefits of the PlayStation or Xbox ecosystems. Epic is unique in offering nothing.
lol, delivery optimization is a literal windows feature that by design prevents software from being removed from your device's storage because it's a delivery machine itself to your own devices. That experience isn't valid
I don't really have strong opinions on the matter, as I don't play a ton of PC games. I do logon to Epic and claim the occasional free game if it interests me, but I probably won't actually be buying anything until they match some of Steams features, mainly Steam Input and Remote Streaming. I honestly don't know if they are even planning on implementing that kind of stuff.
Not any time soon. Sweeney has stated that they're not interested in competing on client features and instead plan to go about it primarily through pricing and exclusivity.
Literally on their website.
"What's the catch? Is this 88% revenue share a special introductory rate?
There is no catch; the 88% share to the developer is the permanent rate. Epic's 12% share covers the operating costs of the store and makes us a profit."
Publish Apps, Games and Software on the Epic Games Store.
Learn how to publish apps, games and software on the Epic Games Store to access over 100M players on PC and Mac.
Armchair business analysts doing the most.
Plans can change.
"makes us a profit"
Clearly that didn't pan out as we see from making half a billion loss.
Epic already has changed to charge extra payment fees (over 3%) from developers
There was a good month (at least) where PSO2 would just uninstall itself, making you delete the old folders and reinstall entirely. This was when it was on the W10 Store before the Steam version.
They also promised they would fight against videogame devaluation by not having too many sales. Things change.Literally on their website.
"What's the catch? Is this 88% revenue share a special introductory rate?
There is no catch; the 88% share to the developer is the permanent rate. Epic's 12% share covers the operating costs of the store and makes us a profit."
Publish Apps, Games and Software on the Epic Games Store.
Learn how to publish apps, games and software on the Epic Games Store to access over 100M players on PC and Mac.
Armchair business analysts doing the most.
I personally thing that change would be a last thing to do if they are super established and have a captive audience,, but wont really happen. Mainly because they build their entire PR on that (and their lawsuit against Apple).
Forget controller support for now , they don't even have a shopping cart - something every other store has
You don't know what you're talking about.Plans can change.
"makes us a profit"
Clearly that didn't pan out as we see from making half a billion loss.
Epic already has changed to charge extra payment fees (over 3%) from developers
"Makes them a profit" in terms of the operating costs, not the costs of their other ventures in terms of promotions, exclusivities, and free giveaways. That's where the money drain is. The 12% is covering the servers, store developers, etc.
The extra payment fees are for the CUSTOMERS not the developers. The 12% is the royalty/cut taken by Epic for launching on their store. The 3% is like a tax the GAME PURCHASING CUSTOMER is charged.
Maybe try reading the quote from EGS developer agreement I attached?
That was changed later on to be charged on the dev side. Read the post you quote.
Step 2 has to be "give the now large userbase that frequently visit the store a unique reason to buy a game they want".
Having the best non-key-seller discounts or unique features (Steam has Workshop support, Xbox has Auto HDR for example)
Honestly, this exposes how the Epic hatred makes no sense.
Microsoft is trying to lock down access to files on your PC to kill modding, and every time someone subs to Game Pass they get one step further to their goal. When Microsoft Store takes over and kills Steam, you can kiss modding goodbye. And Epic is the bad guy here??
Probably what a lot of those users are doing outside of fortnite. I've bought one game for $9. The rest of my 100+ game library were all free.
Literally on their website.
"What's the catch? Is this 88% revenue share a special introductory rate?
There is no catch; the 88% share to the developer is the permanent rate. Epic's 12% share covers the operating costs of the store and makes us a profit."
Publish Apps, Games and Software on the Epic Games Store.
Learn how to publish apps, games and software on the Epic Games Store to access over 100M players on PC and Mac.
Armchair business analysts doing the most.
EGS is not located in Wonderland were probably the operating cost stay the same forever. In planet Earth operating cost goes up from time to time and if you plan to get bigger as Epic probably wants the cost are gonna start to pile up. More data centers, more bandwith, more etc. It's just matter of time and ofc if EGS grows.
That 12% gonna increase.
If Epic has to tax on extra taxes/charges for customers, then the 12% cut they take isn't sustainable is it (at least for all regions)?
I wonder if this factors in the Hundreds of thousands they probably lose during sales with that $10 off coupon, because AFAIK It's cut from their 12% not the Dev's Cut.
IIRC someone mentioned something like that back during the first winter sale, that EGS would give developers the full cut of their sale price, even if the $10 off was applied to said purchase
IIRC someone mentioned something like that back during the first winter sale, that EGS would give developers the full cut of their sale price, even if the $10 off was applied to said purchase
I'm definitely in that basket. I claim the free games, but have yet to touch any of them. I've bought one game from them (Predator), and only because I wasn't a fan of how it ran on PS4 and Epic was the only place to get it. The only real use I get out of the Epic launcher is tracking how much time I spend playing Magic Arena, a free to play game that can be downloaded and played without their launcher, but I only use there because I like tracking that kind of stuff.
That is how it works and they lose money on each sale below like 90$ if coupon is used.
Epic can't keep this up forever, and they want that market share in the next 1-2 years, not 5 or 10.
Either they get another Fortnite to bring users over, or EGS will change dramatically soon enough.
Either they get another Fortnite to bring users over, or EGS will change dramatically soon enough.
i wonder why people would dislike a store that is paying for exclusivity of games that were planned for steam and then sell them on a store on the same platform with worse features for the sole purpose of gaining market share
One is trying to use timed exclusive deals and free games as way to deter you from using Steam. The other is simply giving consumers more value as an option. You two can surely see the difference from a consumers point of view or are you telling me you prefer to pay $60 or $70 to play MLB The Show on PlayStation and not be given an option to play on a monthly subscription?
The answer is obvious, many here would love Sony to offer the same of putting new games in a monthly package but instead of saying yes that would be great, it's instead turned into that doesn't make financial sense for Sony as though we care more about that. Nobody also makes the same arghument about hardware and how Sony at times takes a loss on that.
I haven't bought anything on EGS and I never will. But I keep adding the free games to the account I never use. I like that it costs Tim money. Keep burning that cash.
Profitable in 2023? LMAO!
Profitable in 2023? LMAO!
They don't need to be so long as they continue to pull in active users regularly. IFeven a small percentage of new users sign up for Fortnite and buy v bucks,EGS is working in favor of Epic's long term goals.
Yeah there's no way that is helping matters at all, I know last year during the winter sale I must have used it for around $60 in savings, so the amount they lose during those sales could probably even be proportional to the money made by it.
Fortnite is separate from Epic Store, and if they want to have successful store they need to make people spend money on 3rd party titles and so far they are doing bad job with that. Developers and publishers will stop releasing games there if there are no sales.