Epic Games Store - 88% split goes to devs

#2656

So, wait - developers getting more of a cut of their sales increases prices? I am not following.
Even if Valve and Epic lay out cash for exclusives - that comes from THEIR end - not the developers who set prices. Moreover, that cash goes TO developers. Which, again, improves their bottom line and doesn’t seem an obvious factor for increasing prices.

#2657

Yeah, I don’t see this in any way ending in increased prices unless somehow all competition goes away. I think the exact opposite is true for reasons I tried to illustrate up-thread.

Fundamentally, you don’t increase competition, decrease production cost (via more favorable developer sales split), and increase prices. No market could do that and survive.

#2658

Less revenue from developers and higher direct expenses. Where do you make up that delta if you are Steam or Epic?

Bugger me does no one understand a basic income statement?

#2659

I’m still not following. The stores do not set the prices. The developers do. So less revenue from developers to the store does not affect prices. Valve and Epic cannot make up the cost of their exclusivity buys or %revenue split by increasing prices, because they do not set them.

#2660

I hesitate to use the word ‘gouge’ but there’s certainly been some advantage taken by the incumbent players in the PC store (or platform, if you prefer) market over the last 10 years. I see the change to a more favorable developer split as an over-due correction rather than as something that presents an existential crisis to the retailer. In other words, they eat it.

#2661

That is super generous of you, but I wont hold you too it. Let’s face it, with the backlog that I have, I shouldn’t complain about games that will eventually drop to my price.

It will be on my wish list for the future.

#2662

Is it the developers, or is it the publishers? I had always assumed your position was different from that of Obsidian or 4A?

This is also why I assume that the extra money coming from Epic may result in better pay for non-management/ ownership at some studios (such as those who self-publish), but not those under the 2k/ Deep Silver/ Private Division banner. I’m happy to see the people actually working on games get some extra in their checks, but I don’t really care about publishers.

#2663

The real question is whether that’s true. I hope it is, but I don’t trust that it is. I’m certainly not going to financially incentivize Epic to continue its current behavior, which means I won’t be buying anything through their store or installing their questionable launcher. I have very little regard for Steam, and I’d love to see a better option come along. This isn’t that.

#2664

I don’t know about price setting on the pub side - probably depends on your publisher relationship. Either way though, the cost for this initiative is on the side of the stores, not the pub/dev - so the pub wouldn’t increase price to assist the store either. And even if you’re in a pub/dev relationship, a better cut from the store means you earn out your advance and get to royalty faster.

#2665

I mean time will tell - Epic has publicly stated that it’s their intent, and I have no reason to doubt them, given the ongoing expense and PR drag.
All that said, I’m all for people making choices about what and where they buy based on their preferences. I don’t fault anyone for doing so.

#2666

Epic don’t have a great track record on the factual accuracy of their public statements, lately. Time will tell, and I’d like to think it’s not financially viable to keep this up, but they’ve got very deep pockets.

Unrelated to this mess, by the way, loved the first Rebel Galaxy. I look forward to playing the sequel one of these days.

#2667

If the store takes off and does the required numbers, then they stop. If it doesn’t take off, eventually you stop throwing good money after bad. shrug I think either way, it ends. It just makes the most sense.

I look forward to releasing the dang thing one of these days!

#2668

I know a lot of people have said they are exiting the discussion or muting this thread. I don’t blame them because it certainly has been passionate. That said, I hope we don’t lose too many voices or perspectives (especially ones I disagree with) because the diversity of opinion has been great and this really is one of the best places to discuss the disruption. The bonus of developers chiming in has been insightful.

Many other places on the web have turned into echo chambers for one position or another but I have appreciated the wide spectrum present here.

#2669

Agree. I am enjoying the differing opinions here and the in depth discussions. I know I have learnt a lot about other perspectives, I hope others have as well.

#2670

Theoretically a lower cut to the store means lower prices for gamers. Thats just basic market theory. The devs costs have not changed, so their break even point is now at a lower price. In theory, the incumbent has been enjoying ‘abnormal’ profits, and the competition is now fixing this market error.
Note that ‘abnormal’ is an economic term, not my opinion one way or the other :D

#2671

It’s nothing like that simple. Basic market theory says games should be free if they replace each other, and sold at the revenue maximising price if they don’t replace each other at all. Note that neither of these involves the cost of production. The true state is somewhere in the middle, and basic market theory isn’t a great model for this market anyway.

#2672

I wish that was true for all games, sadly not for The Sinking City, listed as $59.99 on EPIC. I have no doubt if it was on Steam consumers could have found pre-order deals for $45-50 from 3rd party stores for a Steam key.

#2673

Yes, but the publishers know they can get $60 for a game, regardless of their costs, so will charge that much. New games seem to be quite inelastic.

#2674

in theory new games will be made available by competing devs who can afford to sell them for less, because of epics cut.
I am NOT SAYING THIS WILL HAPPEN. I am saying thats economic theory of a free market. Source: My LSE education :D

#2675

Sure, but if I remember correctly, that theory only works if everyone is selling the exact same product in a perfect world. Say grain in a small geographic area. It doesn’t really work on something like games. With that theory, Apple should have went out of business 20 years ago.