630°

Epic Games will stop seeking exclusives if Steam adopts 88/12 revenue split, says CEO

From GameWatcher: "Epic Games Store has, since its inception, been host to a significant number of timed (and some potentially permanent) game exclusives that Epic has drawn in with promises of a better revenue split and varying payouts.

Now, Tim Sweeney - the CEO of Epic - has vowed to cancel all future exclusivity purchases, should Valve adopt the infamous 88/12 revenue share across the board. For those who are not in-the-know, this means that 88% goes to the game publisher, while 12% is taken by Valve/Steam.

ARESWARLORD1828d ago

That's only fair steam is totally gouging the publishers

MIDNIITE_Z3RO1828d ago (Edited 1828d ago )

Some publishers, not all. It's the indie publishers and smaller studios that suffer, rather than some of the larger ones... more notably the ones that seem to be doing exclusivity deals with Epic, which is why it's been such a hot topic.

harmny1827d ago

Some publishers? Thats because bigger publishers build their own platform. Origin. Uplay. Bethesda launcher. Epic. Activision to battle net. Why do you think they did that? Because steam was nice? Nobody likes valve getting 30% of their profits

TheHan1827d ago

Which proves that exclusives matter and can sway the audience

opc1827d ago

@harmny

they did it because it makes sense. Even if Steam took 1% it would still make sense to sell them on your own and get 100%

opc1827d ago

the indie publishers and smaller studios aren't even allowed on Epic, Origin or Uplay

WombBat1827d ago

Publishers still suffer just not on the scale of an indie studio.

"If Steam committed to a permanent 88% revenue share for all developers and publishers without major strings attached, Epic would hastily organize a retreat from exclusives (while honoring our partner commitments) and consider putting our own games on Steam." -Tim Sweeney

Holy cow, I knew this was good for developers but dang, EGS is really about keeping what you make!

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Sophisticated_Chap1827d ago

It's no different than what Xbox and PlayStation charge publishers and developers. We don't know what Steam's costs are to run their business, and they have invested a lot of money into their platform over the years, with so many different features, across Windows, Linux and Mac.

Steam has also invented their new controller, they have come out with their own Steam OS operation system, and they have invested heavily in controller support, including with the PS4 controller, among other things. At the end of it all, they also want to make a profit. If there is no profit, then there is no incentive to be in business.

With Epic only taking a 12% cut, they will not invest in their PC store anywhere near to the extent that Steam has done. It's very easy for Epic to come in and charge developers 12% when they run a storefront with literally no features. Right now, Epic literally has nothing to lose by undercutting the competition, but it won't last.

Lastly, when people start defending the publishers, they are actually defending multi-billion dollar publicly traded corporations like Ubisoft, Activision, Warner Bros., Take Two, CapCom, Sega and others. The development studios are already paid for their work under contract by the publishers, with possible bonuses should they hit certain sales targets or Metacritic scores.

1827d ago
Reefskye1827d ago

Only question that should be asked as Gamer is how does this benefit me? It doesn't. Competition is competing for your customers money. They ain't competing for your money by offering u a better deal, this whole we give developers more money is just a PR stunt of course the developers are so happy with their new deal why can't they offer discount? They don't c because this deal only benefits them, they don't care about you. They just hope you follow their epic love train while not giving a shit you have to use a below par launcher. Anyone who defends this just shows how much of an easy consumer most people are to manipulate.

UltraNova1828d ago

Bombs have been dropped. Lord Gaben is deep in his bunker though.

FlameBaitGod1827d ago

Bunker made out of money, in 2017 alone steam had a revenue of over 4 billion lol

harmny1827d ago (Edited 1827d ago )

And that's with 0 new games. Because nobody bought artifact. And then you want valve to make games lol. Gaben sits at his desk browsing Reddit and gets thousands of dollars per minute

1827d ago
Concertoine1827d ago

Gaben is richer than President Trump

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JackBNimble1827d ago (Edited 1827d ago )

Well maybe steam should go from being a free platform for their customers, to charging $60 yearly subscriptions like psn or xbox live.
After all, steam is much more then just a store .

I am willing to bet that half the people calling steam out have never even used it before.
Steam trumps psn and xbox live as a service, even origin and uplay doesn't compare.

Steam has well over 100 million user base and that's not because it's a shit platform for the PC community.

It will take epic at least a decade to even come close to being comparable to steam if ever.

And just to be clear , the suggestion to charge a subscription is pure sarcasm.

carcarias1827d ago (Edited 1827d ago )

Holy crap! 4 billion? I know it's not all profit but that's still colossal.

Yeah, I don't see Steam worrying too much at the moment then. I guess Half-life 3, from a money making point of view, is kinda small-fry at this juncture :(

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PapaBop1827d ago

Fake bombs more like, Epic are making these demands because they know Valve won't give in to them. Hypothetically, if Valve did give in to them and Epic didn't make good on their demands, from a corporate standpoint, Valve would look like an absolute idiot meanwhile Epic will just get the same hate from the same people anyway.

I hope Valve make changes to how they deliver profits especially for Indie developers who must feel the percentage cuts far more than the big publishers however this just screams at an easy PR grab.

1827d ago
W34KN35S1827d ago

Exactly , I have thought about that as well and if that did happen it Valve would suffer. The other option is that Valve could continue to do nothing and just wait until Epic runs out of money to eliminate them as competitors. Their current business model of buying these exclusives isnt sustainable.Honestly steam could probably not do anything and still be fine.

Cobra9511827d ago

It is common practice for a big business to undercut smaller ones, drive them out of business, then jack prices back up to more than make up the initial loss of profits. Here, Sweeney is tempting fate by asking for precisely this. I think it was a dumb move. He didn't have to promise Valve, or any of us, anything. Now he's on the hook.

slavish01828d ago

Bet steam does nothing.... Again

opc1827d ago

What would you like them to do? They are going to be announcing a new VR system and new controllers in the next 2 or 3 weeks. They might even announce 3 games that they are rumored to be working on.

Here's what you've got to remember. Tim Sweeney and Tencent want Epic to compete with Steam. Valve want's Steam to compete with Playstation, Xbox, and Nintendo.

Epic is building a store. Valve is maintaining a feature-rich platform that has a store inside of it.

Adexus1828d ago

"We'll stop taking hostages if you agree to our demands!"

jznrpg1828d ago

Eh that’s a big reach. This is business

KwietStorm_BLM1827d ago

It's an analogy. And it's actually perfect. It's just funny/curious that Sweeney would publicly make this statement. Comes off like the whole bigger picture of the Epic store is like trying to be the white Knight for publishers.

harmny1828d ago (Edited 1827d ago )

I wish hostages were paid 2 million dollars. Thats what epic hostages are getting

RizBiz1827d ago

Probably a lot more than that to keep their games off of Steam.

Kryptix1827d ago (Edited 1827d ago )

Translation: "We MIGHT stop seeking exclusives. Actually, come to think of it. We're going to eventually backpedal on that statement and it'll all be the same, just Valve making less money."

That's how I see it. Difficult to trust an arrogant scumbag who doesn't mind forcing where the consumer goes by buying out exclusives that were already coming out on Steam into a launcher with lack of features & security.

https://pbs.twimg.com/media...

Also Valve allows other marketplaces to sell keys while Epic does not. Check that image out.

TekoIie1827d ago (Edited 1827d ago )

That image is brilliant.

One of the funny things is that everyone claims that EGS is going to result in us saving money but Valve already saved us a ton with their brilliant Steam Sales and CD key sites contribute to those savings. What can EGS do on top of that? It's not like the smaller cut they take has resulted in lower prices because the EGS versions cost the exact same as the console version which definitely take more than 12%.

Cobra9511827d ago

Last I heard, hostages aren't hired to the tune of millions of dollars.

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Srhalo1828d ago

F off Epic.

I didn't really care that much, but what the actual fuck, they don't get to dictate what other companies do giving demands like they own the place.

LordoftheCritics1828d ago

At least they are vocal.

In the world of business worse things happen behind the scenes. This is in fact more like a Robin hood moment.

shadowraiden1828d ago

robin hood that spies on the poor and shuns them when they have any issue? there support and data issues are bad and may even lead to being banned in the EU because it breaks several EU laws.

GameBoyColor1828d ago

More like a terrorist moment. We will release the hostages once you follow our demands LOL

PapaBop1827d ago

They're not being vocal out of the goodness of their hearts or a desire to better the games industry, they are being vocal because they know Valve could never agree to such a thing in the short term. It's nothing more than another tool in their ever aggressive strategy for promoting their store.

Teflon021827d ago

That's arrogant, not vocal. They wanna f over the consumers to help the devs. The devs who are profiting. They just want to profit more. I get wanting to change it. But it's always been like that. Forcing consumers to deal with it is a issue in itself as it really doesn't hurt Valve that much realistically.

opc1827d ago

Robinhood? Epic is worth way more than Valve...

Tencent--one of Epic's largest investors-- is the most profitable video game company in the world. They made 20 billion last year.

This isn't a robinhood moment at all. This is two behemoths getting together to operate at a loss in an attempt to muscle out the competition.

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jeromeface1828d ago

I for one am boycotting purchases on the epic store because I'm against exclusivity in the pc market. Suck on that Tim Sweeney. You lost a customer because of your bullshit and most likely many more.

Asuka1827d ago (Edited 1827d ago )

Does that mean you're going to boycott every game that utilizes the unreal engine? Otherwise your boycott comes off as half ass and at the end of the day you really don't care.

Also all this hate about exclusivity. How else do you think third party exclusives work on consoles? someone somewhere pays a sum of money to have a particular game on a particular console, and yet no one bats an eye but instead praises it for being exclusive to a particular console. The hypocrisy over this whole issue is astounding.

Zenbaby3691827d ago

@Asuka I mean, he did say on the PC market. So your comment about the console market is irrelevant. Also, people do get upset about third party exclusives on consoles except the fanboy on the other console. Usually the third party exclusives are the most praised right?

Asuka1827d ago

@zenbaby

So it's irrelevant because it's a different market? That's the hypocrisy I'm talking about lol. It's all still the video game market. It's all still the same publishers and developers. It's all the same money. Just a different platform in which you consume the media that you purchase.

Aloren1827d ago

Every PC store has exclusives. Maybe except gog ? (Though it offers hundreds of old games you can't find anywhere else. ). Origin has exclusives, Battle.net has exclusives, Steam has thousands of exclusives... will you be boycotting them too ?

opc1827d ago

@asuka it's irrelevant because we don't play games on consoles...

opc1827d ago

@aloren

First party games are expected to be exclusive. Ubisoft's first party games are not exclusive. They are sold everywhere. Valve's first party games were actually available on Origin and Uplay briefly until EA and Ubi changed direction. Ubi doesn't sell any third party games now.

fiveby91827d ago

Console platform holders take a significant cut from developers too. Upwards of 30% as well. Why isn't Tim Sweeney whining about that? Tim Sweeney's faux virtuous business practices are a joke. EGS will eventually die off if they continue their current business practices and provide no benefit to the consumer.

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Christopher1827d ago (Edited 1827d ago )

They're not dictating, they're saying what it would take for Epic to stop doing what they are doing.

At this point though there's nothing Epic could do to make people happy it seems since they've upset Pappa Gabe, which is the issue to begin with. People don't understand how non-competitive the PC market is and how less revolutionary it has been because of Steam. Only since Epic started 'stealing' games have Steam started really pushing on changes sooner than later on their road map. Why are they suddenly able to get more things done in the last year than before? It's a mystery.

Edit: Don't get me wrong, Epic needs to put their stuff up as well, but they're finally creating competition for Steam and Valve is taking them seriously. That's good for everyone. More competition means better advancements.

Srhalo1827d ago (Edited 1827d ago )

I can say 100% for certain nothing I say is motivated by GabeN.

Steam started changing things well before Epic Store existed, mostly because the storefront was such a mess. And if you have been paying attention almost everything they have changed recently was discussed before Epic store in an effort to clean house. One big example is the developer/publisher pages, those were a direct result of people complaining that it was hard to find games and were implemented well before Epic store.

Steam has competition Origin, Uplay, CD Key shops, Microsoft Store, Humble, GOG and many others. And speaking of them why isn't anyone asking them to give more to the publishers like they are Steam, Epic is keeping games off those platforms as well.

Cobra9511827d ago

Amazing how competition works, isn't it? When you're undisputed top dog, you don't have to do anything outside your comfort zone--no improvements, no innovations, no better deals. Ask Intel how they feel about Ryzen right now? Suddenly, they're forced to up their game. So is "Pappa Gabe".

rainslacker1827d ago

What are they demanding. They're just saying they'll stop buying exclusives if Steam changes their cut.

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rainslacker1827d ago

For years, Epic has spoken out for the customers, and the developers. Some vocal people on the net are all over their ass because of their decisions with the EGS, but people disregard all the times they've called out the same publishers in the industry which we call out daily. They call out MS for their attempts at UWP locking content into a closed ecosystem. They've called out the rampant increase in wasteful spending for AAA games and worked with publishers to build better systems into their game system...some of which disregarded it to make their own engines, and now those same publishers are still getting criticized.

Epic isn't perfect, but don't sit there and act like Epic is evil incarnate. They started their platform to have a better position to release fortnite. Same reason Blizzard made their own. Same reason EA and Ubisoft made their own. Epic isn't alone. They jumped the gun. But at least they're giving a fair cut to the devs and pubs. I don't agree with them buying content the way they are, but some people are going to extremes to make epic out to be akin to the devil.

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Reefskye1827d ago

@Rainslacker, what are they offering YOU though, What happened to the world when you should accept using sub standard service for a product you could buy for the same price with a much better service just because they give the product providers a better cut?

But even that is not what we have we Epic, you can't go anywhere else for this product because Epic flashed some cash and offered a better deal, while you as a consumer and left with a featureless launcher what can't even hold a candle to steam.

Is this honestly the world we live in now that people are willing to be shafted because epic give another company more of the money, really???. Their are many ways to compete without buying exclusives, Origin and uPlay prove that, but that's the point epic don't make games, they just trying to pull a fast one and hope they can just push as many sales as possible, all the while its the consumer who suffers.

rainslacker1827d ago

I don't use any of their services, nor do I play any of their games. I have no vested interest in them at all, although I do know quite a few people who work there.

Sweeny wasn't wrong about UWP. He was wrong about one thing. But, he was right about it being about control for MS.

I simply asked the question of what they are demanding. No one has answered. EGS will build their services if there is demand and need. Keep asking, and eventually they'll do it. I know you don't like the exclusives, but it's what they feel they have to do to compete, and given how no other store front has made a dent with nothing more than better cuts, they probably aren't wrong. They should have fleshed it out more, I won't argue that, but to say that they are not interested in protecting the customers is just wrong. Sweeny has always been a proponent for both the industry and the consumer.

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Tacoboto1d 2h ago

"the capital group of PCF Group S.A."

If you're getting funding from a group that needs two different ways of Acronyming itself, things will not go the way you want them to.

banger8821h ago

If it was more online-only crap then good riddance.

jjb19817h ago

Outriders was crap. They slapped that game together and threw in a loot system to get players' attention. This game was absolutely jank and the always online nonsense made it stutter like crazy. People Can't Optimize.

thorstein6h ago

I liked Outriders but I could see where the artistic vision was compromised. The way the industry is now, it wouldn't surprise me that upper management would scrap something that didn't pull in money via gaas, mts, or other means.