Exclusives the Only Way to Challenge the Large Library of Games Available to Large Stores
The Epic Games Store took a similar strategy to the Michael Scott Paper Company by promising a significantly better rate to their clients. By offering developers a larget cut of the revenue than major market competitors such as Steam, the Epic Games store is weaseling itself into a crowded market. Recently, Epic is starting to lock down exclusive rights to sell certain games on PC such as Twin Mirror. This is a strategy that CEO Tim Sweeney believes is necessary to attract gamers.
This strategy is not sitting well with a lot of people, who took to Twitter to actively express their displeasure towards Sweeney. A lot of the criticisms revolve around removing games from Steam were previously pre-orders, such as The Division 2 and Metro: Exodus.
In a series of tweets, Sweeney writes “We believe exclusives are the only strategy that will change the 70/30 status quo at a large enough scale to permanently affect the whole game industry. The 30 percent store tax usually exceeds the entire profits of the developer who built the game that’s sold. This is a disastrous situation for developers and publishers alike, so I believe the strategy of exclusives is proportionate to the problem.”
He continues, “If the Epic strategy either succeeds in building a second major storefront for PC games with an 88/12 revenue split, or even just leads other stores to significantly improve their terms, the result will be a major wave of reinvestment in game development and a lowering of costs.”
Sweeney concludes by stating “We believe the lock-in effect of having a large library of games on a dominant storefront is more powerful than features, and hence a dominant store can only be challenged through exclusives. I believe this approach passes the test of ultimately benefitting gamers after game storefronts have rebalanced and developers have reinvested more of their fruits of their labor into creation rather than taxation.”
What do you think of Epic Games Store purchasing exclusive rights to selling games? Lets us know in the comments section below!
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Epic Games CEO Believes Exclusive Gaming Rights is Crucial to Disrupting Status Quo