Epic reduce their cut to 0% for the first $1 million in revenue for devs on the Epic Games Store
Epic reduce their cut to 0% for the first $1 million in revenue for devs on the Epic Games Store
Some interesting industry news for you here. Epic Games have announced a change to the revenue model of the Epic Games Store, as they try to pull in more developers and more gamers to actually purchase things.
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How are they affording this? It can't be a sustainable model, right?
Fortnite, and it's not. The store loses them hundreds of millions of dollars per year.
That's the kind of competition I want. Not a plucky newcomer with fresh ideas, but an industry titan able to burn more money than some companies ever see in an attempt to undercut the competition. They surely aren't factoring this as a deficit to recoup when they pull a massive reversal after securing market dominance. That's never happened in the history of capitalism.
Epic can huff my huffables.
Dont they also get royalties from Unreal Engine?
Here's the details on the financials
https://newsletter.gamediscover.co/p/exclusive-the-numbers-behind-epics
They'd been paying a fortune for other ways to get more titles which never panned out. Steam said fuck the little guys so they're trying to capitalize on that right now.
Easy. On EGS most games don't sell at all, so 0% of $0 is still $0. They get most of their money from Fortnite.