Epic Games' First Run: A Perplexing Choice for Game Developers
Introduction
Epic Games, in its ongoing rivalry with Steam as the premier PC gaming storefront, has introduced a new initiative called First Run, offering game developers 100% of their game's sales revenue in exchange for a six-month exclusivity agreement on the platform. While this may seem like an enticing offer, it raises questions about whether it is truly a beneficial choice for game developers. This article will delve into the implications of Epic's First Run program, examining its potential advantages and drawbacks.
A Questionable Trade-Off
First Run appears to be an attempt by Epic Games to attract developers who are dissatisfied with Steam's 30% revenue share. Epic Games Store already offers a more favorable 12% cut, but developers can still list their games on other platforms at this percentage. In addition to retaining all net sales revenue, games participating in First Run will receive exclusive promotional benefits, such as badging, homepage placements, and dedicated collections. Furthermore, their products will be featured in store campaigns, including sales, events, and editorial content. Although these incentives may sound appealing, the actual value of the deal may not be as promising as it seems.
Steam remains the dominant platform for PC gamers despite its shortcomings and the 30% revenue cut. Developers have revealed that when their games are available on both Steam and Epic Games Store, Epic's platform only accounts for a small fraction of sales. Some developers have chosen exclusivity offers from Epic Games, but primarily because they were provided upfront cash payments to mitigate risks and cover expenses. For independent developers, a guaranteed amount of, for example, $150K, proved more advantageous than the uncertain potential of earning twice or ten times that amount. Yet, in the long run, many of these developers eventually migrated to Steam. Thus, the fact remains that Epic is asking developers to trade 70% of a larger pie on Steam for 100% of a smaller one on its platform.
Limitations of the Epic Games Store
While Epic Games Store is an active platform, it falls short in terms of features, making it difficult to recommend as a compelling alternative to Steam. Despite its years of operation, Epic Games Store still lacks essential elements, such as user reviews. In contrast, Steam's review system has fostered a robust and self-contained community. Additionally, Steam has built up numerous other appealing features over time. For small developers, Epic Games Store may not be a viable option, considering the key elements it lacks. However, larger companies might find it more enticing, especially if they lack their own store or have a subpar proprietary platform. In such cases, Epic Games Store could serve as a more favorable sales channel compared to Steam. We should expect several companies to test the waters with this new program.
Epic Games' Position and Future Outlook
The introduction of the First Run program raises questions about the state of Epic Games' position in the market. Is this initiative a sign of Epic feeling confident or a desperate attempt to attract customers? It is impossible to say for certain. Despite Epic Games' substantial investments in giveaways and exclusives, it has failed to establish itself as a credible challenger to Steam in recent years. This is relevant because while people are happy to take advantage of freebies, they also value reasons to stay with a platform, and Epic Games Store seems to struggle in delivering this aspect.
Conclusion and Recommendations
Epic Games' First Run program may initially appear attractive, with its 100% revenue share offer and exclusive promotional benefits. However, closer examination reveals potential drawbacks. For small game developers, the trade-off of 70% of a larger pie on Steam for 100% of a smaller one on Epic Games Store may not be worthwhile, especially considering the limitations of the latter platform. Larger companies, on the other hand, may find this offer more appealing, particularly if they lack their own store or have an inferior proprietary platform. Ultimately, the decision to participate in Epic's First Run program should be carefully evaluated by each game developer based on their specific circumstances and goals.
Keywords: Epic Games, revenue sharing, game development, exclusive licensing
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