Why are publishers and developers moving to exclusivity on the Epic Games Store?

Steam isn't the only game in town anymore

<p>This is a question many have asked&comma; but few have answered in a conclusive way&period; With the rampant speculation and the endless back and forth between those that are irritated by the decision and those irritated by those who are irritated&comma; the conversation is muddied to say the least&period; However&comma; if we take a minute to look in the right places&comma; it starts to become a lot more clear why this trend is taking place&period;<&sol;p>&NewLine;<h4>A Short History<&sol;h4>&NewLine;<p>The Epic Store’s exclusivity was a relatively minor thing after their first announcement at the end of 2018&period; Only a handful of games of note were said to be exclusively on the platform&comma; including some standout indie titles like the upcoming Maneater and Supergiant’s new early access game&comma; Hades&period; The real contention only started when the announcement came that the highly anticipated Metro&colon; Exodus&comma; the third in a franchise made popular on PC via Steam&comma; was going to be pulled from Valve’s store and sold exclusively on the Epic Games Store for one year&period; What made this especially rough is that the game had been listed on Steam for many months&period; Soon after this announcement&comma; a notification was put up by Steam stating that it would not be sold there after launch&comma; but preorders would be honored&period;<&sol;p>&NewLine;<p><img class&equals;"alignnone wp-image-143497 size-full" src&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2019&sol;03&sol;16072950&sol;b08dc22b5c9970b0ca8976e3e28bfaabab1210a2&period;jpg" alt&equals;"" &sol;><&sol;p>&NewLine;<p>This news caused quite the uproar and the move was sometimes branded as &OpenCurlyQuote;anti-consumer’&comma; though I feel that term is often poorly used&period; Not long after&comma; Ubisoft announced that The Division 2 would be sold only on Epic and of course their Uplay launcher and&comma; after launch&comma; no keys would be sold on any of the typical key resellers&period; While this wasn’t as poorly received&comma; it still begged the question&comma; why would anyone choose this&quest;<&sol;p>&NewLine;<h4>Comparing the big players<&sol;h4>&NewLine;<p>The Epic Games Store touted only one real notable advantage over the goliath that is Steam&comma; a developer cut of only 88&percnt; rather than Steam’s 70&percnt; for developers&sol;publishers&period; This is obviously an appealing proposition for these companies&comma; but one that had its own set of comparative problems&period; The first and most obvious is that Steam has concurrent users in excess of 15 million on a regular basis and that number has been growing for years&period; Conversely&comma; Epic’s success with its launcher&comma; and most of its financial success for the past year &lpar;&dollar;3 billion in profit for 2018&rpar; is due to the 200 million&plus; total Fortnite players&period; While that sounds significant&comma; there are a number of issues that make Epic’s numbers mean a lot less from the position of actually selling games&period;<&sol;p>&NewLine;<p><img class&equals;"alignnone wp-image-143490 size-full" src&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2019&sol;03&sol;16071515&sol;statistic&lowbar;id308330&lowbar;number-of-steam-users-2012-2018&period;png" alt&equals;"" &sol;><&sol;p>&NewLine;<p>The Fortnite player base is spread across many platforms&comma; not just PC where the store exists&period; Those that are PC players also aren’t guaranteed to even be interested in buying other games on the platform&period; Playing a free-to-play game and investing a bit in the cosmetics within it isn’t an identifier for a desire to buy other games&comma; where Steam has generated much of its popularity &lpar;and feature set&rpar; around being a one stop shop for game purchases&period; Epic is doing the equivalent of having a free concert for a popular band and selling band-related merchandise inside the venue while trying to convince devs and publishers that setting up shop outside to sell t-shirts for other bands is going to be popular&period; It’s hardly an appealing proposition for companies that want to have their game in as many hands as possible&period;<&sol;p>&NewLine;<p>Steam also has a wide variety of features that the Epic Game Store lacks for both customers and developers&period; Most notably is that Epic didn’t have a search functionality until a few days ago&comma; and even then it is an &OpenCurlyQuote;exact title’ search&comma; so if you wanted to look up &OpenCurlyDoubleQuote;Hades” and spelled it wrong or just put in something like &OpenCurlyDoubleQuote;hell game”&comma; you won’t find it&period; Steam also gives developers access to the Steamworks set of tools they can use for things like cloud saves&comma; matchmaking&comma; anti-cheat options&comma; mods&comma; and so on&period; The list of comparative features from a user standpoint is even more overwhelming since things like basic chat&comma; groups&comma; voice communication&comma; game reviews&comma; curators&comma; screenshots&comma; cloud saves&comma; library sharing&comma; streaming&comma; grouping and sorting your games&comma; mods&comma; and a good deal more aren’t available in any way on Epic&period; However&comma; it is important to note that very recently&comma; <a href&equals;"https&colon;&sol;&sol;trello&period;com&sol;b&sol;GXLc34hk&sol;epic-games-store-roadmap" target&equals;"&lowbar;blank" rel&equals;"noopener noreferrer">Epic released a roadmap<&sol;a> including many future improvements for the store that would bring it closer in line with some of Steam’s more basic features&period;<&sol;p>&NewLine;<p><img class&equals;"wp-image-143496 size-full" src&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2019&sol;03&sol;16072947&sol;epicroadmap1&period;png" alt&equals;"" &sol;><&sol;p>&NewLine;<h4>Answering the Question<&sol;h4>&NewLine;<p>So we’re back to the original question&comma; why would a publisher or developer decide Epic was worth committing to for a year&period; Why would anyone want to be on a store that is less functional and has a smaller potential customer base&quest; The 18&percnt; more revenue&quest; That could be part of it&comma; but Metro&colon; Exodus was discounted from the Steam price roughly the same amount as the additional revenue they would have gained&period; So that only leaves a couple of options that I would consider&colon;<&sol;p>&NewLine;<ol>&NewLine;<li>Epic is paying some publishers&sol;developers up front or offering them profitable incentives over time&period;<&sol;li>&NewLine;<li>Epic is offering free promotion in and outside of their store&period;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p>The first option is the most obvious&period; Epic has a lot of cash on hand and a desire to leverage that into people using their platform&period; It’s also the most likely way to offset the potential for developers and publishers getting fewer sales of their products to a much smaller audience&period; This would almost certainly be the case for AAA developers&comma; as they would be trying to get their game on as many platforms as possible&period; This could potentially be the case for smaller indie teams as the amount of money to coerce a small team to a one year exclusivity contract would be minor compared to the potential to say a cool indie game &lpar;like Maneater&rpar; is coming only to their store&period;<&sol;p>&NewLine;<p><img class&equals;"wp-image-143492 size-full" src&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2019&sol;03&sol;16071651&sol;sweeneytim&lowbar;750xx954-536-0-18-1&period;jpg" alt&equals;"" &sol;><&sol;p>&NewLine;<p><a href&equals;"https&colon;&sol;&sol;www&period;mcvuk&period;com&sol;business&sol;tim-sweeney-the-game-business-will-change-more-in-the-next-five-years-than-the-past-ten" target&equals;"&lowbar;blank" rel&equals;"noopener noreferrer">In a recent interview with MCV<&sol;a>&comma; the CEO of Epic&comma; Tim Sweeney was asked the following question&colon;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;…<i>so is Epic offering financial incentives&comma; above and beyond the superior revenue split&comma; to games which move exclusively to the store&quest;”<&sol;i><&sol;p>&NewLine;<p>His response&colon;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;<i>Yes&comma; we’ve worked to ensure it’s genuinely worthwhile for developers to move to the Epic Games store&period;”<&sol;i><&sol;p>&NewLine;<p>So without even a minor sidestep&comma; we have the number one motivator for any company to decide to work with Epic&period; By Tim’s own admission&comma; Epic is using the money Fortnite has generated to pay game developers and publishers to put their game on Epic’s storefront exclusively&period; However&comma; let’s also consider another option&period;<&sol;p>&NewLine;<p>The second option would be less convenient for AAA studios since they do their own independent marketing&period; This would most likely be an option I’d see indie companies take since Steam is inundated with indie games and it’s easy to be lost in the fray&period; While they’d be losing a lot of development options and potential community engagement&comma; they’d be able to stand out in a much smaller crowd&period; I believe this was the situation that lead to some games appearing in the Discord Store exclusively for a period of time &lpar;e&period;g&period; Bad North&rpar;&period;<&sol;p>&NewLine;<p><img class&equals;"aligncenter size-full wp-image-143548" src&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2019&sol;03&sol;23113613&sol;Discord-Store-BG&period;jpg" alt&equals;"" width&equals;"1366" height&equals;"727" &sol;><&sol;p>&NewLine;<p>Some of these games experienced quite a bit of exposure from being part of this leading group even on something as relatively small as Discord’s storefront&period; The launch of the Nintendo Switch offered the same sort of massive boost to indie games&comma; especially after people were finishing Breath of the Wild and clamoring for more games&period; Some of the titles released there had been on PC for years &lpar;such as Bastion&rpar; but the new audience dove in and bolstered the sales of nearly every game that landed on the system in those early days&comma; especially with Nintendo advertising them in various videos&period; While Epic may not accomplish quite that level&comma; the notoriety of the platform alone could bring more eyes onto indie games that would have to invest heavily to get similar level of visibility on Steam&period;<&sol;p>&NewLine;<p>Recently Julian Gollop&comma; a veteran video game designer and creator of the classic X-COM games as well as the upcoming game Phoenix Point&comma; <a href&equals;"https&colon;&sol;&sol;www&period;reddit&period;com&sol;r&sol;PhoenixPoint&sol;comments&sol;b0psjl&sol;ama&lowbar;with&lowbar;julian&lowbar;gollop&lowbar;and&lowbar;david&lowbar;kaye&sol;eig8ugs&sol;" target&equals;"&lowbar;blank" rel&equals;"noopener noreferrer">mentioned in a reddit AMA<&sol;a> that he approached Epic with the intention of being released on their platform&period; This may mean that there Epic isn’t seeking indie games to offer this one year exclusivity deal to&comma; but are vetting developer submissions and then offering this as part of the deal&period; Phoenix Point will now be now be released on Epic while any pre-order keys from their crowdfunding platform will be released on there as well&comma; despite promises that it would be on Steam and GOG&period; They tried to cushion the inevitable backlash of this move by offering players the &OpenCurlyQuote;first year of DLC’ for the game for free… you can guess how well that went over&period;<&sol;p>&NewLine;<p><img class&equals;"alignnone wp-image-143498 size-full" src&equals;"https&colon;&sol;&sol;cdn&period;bagogames&period;com&sol;wp-content&sol;uploads&sol;2019&sol;03&sol;16073135&sol;phoenixpoint&period;jpg" alt&equals;"" &sol;><&sol;p>&NewLine;<h4>It’s always money<&sol;h4>&NewLine;<p>The conclusion is clear though&period; The reason we see developers and publishers appearing to be in a gold rush to Epic’s front door is because that’s essentially what is happening&period; Epic is holding a pile of gold and handing bars to anyone that can add a popular game to their store page that will bring in a committed playerbase&period; Exclusivity is now a part of the PC gaming world&comma; whether we like it or not&period; My hope is that this endeavor isn’t a successful one and exclusivity fades away so that the best platform will always be the best choice to play a game&period; Having a dozen game launchers I have to search through to find a game I want to play isn’t appealing and I don’t want to be relegated to missing out on good features so that a publisher gets another bag of cash&period;<&sol;p>&NewLine;<p><strong>Does this mean Valve will join in on this poorly received tactic&quest;<&sol;strong><&sol;p>&NewLine;<p><strong>Will EA&comma; Ubisoft&comma; Bethesda&comma; and any other publishers who have their own launchers start investing in buying up exclusivity&quest;<&sol;strong><&sol;p>&NewLine;<p><strong>Will you be chasing down your favorite game franchise or interesting looking indie game to whatever platform decides it will own the distribution rights&quest;<&sol;strong><&sol;p>&NewLine;<p><strong>Are third party key resellers going to be one of the first casualties of this move&quest;<&sol;strong><&sol;p>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;<p style&equals;"text-align&colon; center&semi;"><em><strong>Let us know what you think&period;<&sol;strong><&sol;em><&sol;p>&NewLine;

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