Hey people! Last time I covered Steam as a distribution platform, this time I'll give an overview of Epic Games Store.
It's almost like PC is split between these two major platforms, so let's have a closer look at the competition - Epic Games Store:
User Base
The Epic Games Store is the second-largest PC game distribution platform with 26-34 million daily active users (mostly playing Fortnite or collecting free games).
Platform Fees
EGS features a developer-friendly fee structure with no registration fee and a base commission of 12% on game sales and in-game purchases. This commission covers payment processing and sales tax management, though it excludes the actual tax payments. In a typical distribution scenario:
Developers receive 68% of the game's revenue.
Epic retains a 12% commission.
Approximately 20% is allocated to sales tax.
Developers can also benefit from the First Run Program, allowing them to keep 100% of revenue for the first six months after their game's launch on EGS. For in-game transactions , developers have the option to utilize third-party payment processing and merchant of record services, which typically charge between 3% to 10%. In this setup, developers can bring their revenue share up to 75% (accounting for 20% sales tax, 3% tax management, and 2% payment processing).
For those who qualify for the First Run Program, the potential revenue share is even higher during the initial six months, as they only need to manage and pay the sales tax.
Features
Epic is known for Unreal Engine, exclusivity deals, and ambitions for a mobile app store. Unreal Engine's 5% royalty fee is waived for EGS-distributed games. Epic's planned mobile store could revolutionize mobile game distribution with its 12% commission, challenging Apple and Google's 30% rates. Epic's exclusivity deals offer upfront payments and guaranteed revenue, typically for six months.
Conclusion
EGS offers great deals for developers but relies heavily on Fortnite, exclusives, and free games to attract players. Its 12% commission is appealing, though it comes with a smaller player base. EGS is a strong secondary platform, and its mobile store ambitions could bring healthy competition to the market.
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