Epic Games Starting Their Own Games Store with 88% Revenue Cut

Epic Games Starting Their Own Games Store with 88% Revenue Cut

Epic Games is shaking up the online games distribution market with the announcement of their own games store. The store plans to give developers 88% of the money they make, among other plans.

An Epic rival

In his interview with GamesIndustry.biz, Epic Games founder and CEO Tim Sweeney spoke about their plans. One of the most interesting plans is to split revenue with developers 88/12. A much bigger split for developers than the industry standard of 70/30. The percentages is based on some math they did based off of running an online store for Fortnite:

We pay around 2.5% for payment processing for major payment methods, less than 1.5% for CDN costs (assuming all games are updated as often as Fortnite), and between 1% and 2% for variable operating and customer support costs. Fixed costs of developing and supporting the platform become negligible at a large scale. In our analysis, stores charging 30% are marking up their costs by 300% to 400%. But with developers receiving 88% of revenue and Epic receiving 12%, this store will be a profitable business for us.

Just last week, Steam made some changes to how much revenue they made from big sellers. Now, it looks like they might have to make some more changes, assuming they didn’t know about the Epic Games Store already. Other interesting details include:

  • All game development engines can be used on the store. However, Epic Games will waive the license charge for those that use the Unreal Engine (created by Epic Games).
  • No-questions-asked refunds for games purchased and owned for less than 14 days (also known as a fortnite. Get it?).
  • One free game every 14 days through 2019.
  • No required DRM.

A much more in-depth look can be seen in the interview on GamesIndustry.biz. However, we’ll be learning more about the Epic Games Store soon, as we’ll be getting more details at the Game Awards tomorrow.