Epic Games Losing More Than 330m From Free Games & Exclusives

[killamch89]

Well it certainly doesn't surprise me that they're losing money off of free games and exclusives but 330m in loses is nothing to sniff at. I mean giving away free games is a marketing ploy intended to lure people to their platform so they were always going to rack up loses in that department. The question we should be asking is how much ground have they gained on Steam using these marketing ploys because this isn't a sustainable plan in the long term. What are your thoughts?

 

[skyfire]

All of this to beat apple, google and steam in their own homeground. I don't know if this is a good thing. I think as long as developers make money nobody would mind. but giving chinese brand head ahead of american (and I am not even american) feels so much unsafe for me or most asians in general. 

[killamch89]

14 hours ago, skyfire said:

All of this to beat apple, google and steam in their own homeground. I don't know if this is a good thing. I think as long as developers make money nobody would mind. but giving chinese brand head ahead of american (and I am not even american) feels so much unsafe for me or most asians in general. 

Everyone sees what they're trying to do but the real question should be - have they seen any benefits from this? Based on current market share, they're hardly giving Steam any kind of competition and they definitely don't have the means to overthrow Apple and Google so they're fighting a losing battle on all fronts.

[Empire]

Just let it sink how much their store has not changed over time. They clearly don't think they need to, which is just odd to me. You have a great example, including some things that can be improved, copy and upgrade as you can afford it. I remember, when this Epic Buying Exclusives controversy was still new, one developer said the money given to them by Epic was greater than the amount of money they would have ever made just through sales. That made me think, "Hold on, so Epic is paying you at least ten times what they expect to make from their own cut of your profit?! Well, you gotta speculate to accumulate."

[killamch89]

6 hours ago, Empire said:

Just let it sink how much their store has not changed over time. They clearly don't think they need to, which is just odd to me. You have a great example, including some things that can be improved, copy and upgrade as you can afford it. I remember, when this Epic Buying Exclusives controversy was still new, one developer said the money given to them by Epic was greater than the amount of money they would have ever made just through sales. That made me think, "Hold on, so Epic is paying you at least ten times what they expect to make from their own cut of your profit?! Well, you gotta speculate to accumulate."

I do remember that their developers were earning far more than the ones on Steam and the question was always, how would they manage to finance this and Epic has been running at loss for the past 2 years courtesy of Apple leaking this. Something isn't adding up as they haven't really provided any competition to Steam - if anything, others are bringing the heat.

[skyfire]

On 4/14/2021 at 5:56 AM, killamch89 said:

Everyone sees what they're trying to do but the real question should be - have they seen any benefits from this? Based on current market share, they're hardly giving Steam any kind of competition and they definitely don't have the means to overthrow Apple and Google so they're fighting a losing battle on all fronts.

Well considering they continue to pour the money and give the freebie means people will sooner or later get addicted. So that is kind of pain if you ask me. 

[killamch89]

21 hours ago, skyfire said:

Well considering they continue to pour the money and give the freebie means people will sooner or later get addicted. So that is kind of pain if you ask me. 

Free games doesn't get most people addicted. It just lures them to the platform - The problem they're facing is retaining those same people or getting them away from Steam. As it stands now, the Epic Games platform is nowhere as appealing as Steam and if I'm being honest, even GOG has a better platform and they allow you to download and own your games if their servers were to ever go out.

[skyfire]

It does actually get people addicted. I know more people playing PUBG and COD and other free games than the paid games in the android play store. I know for sure that people get into free game and then spend on the skins and the themes etc. So the addiction is first step in locking the customer.

[killamch89]

10 hours ago, skyfire said:

It does actually get people addicted. I know more people playing PUBG and COD and other free games than the paid games in the android play store. I know for sure that people get into free game and then spend on the skins and the themes etc. So the addiction is first step in locking the customer.

But that holds true for almost any free to play titles - I know people who are addicted to Rocket League but in these cases, it demonstrates more of a lack of self-control than the game causing it. Games are designed to keep you engaged, you must demonstrate some kind of self-discipline to stop yourself and that's the issue most people have.

[skyfire]

Yeah that seems to be the gap that these microtransaction based games have tapped over the years. Which is understandable. Unless the industry is regulated there is no way out of that. 

[m76]

Had they spent half of that cash to fund development of new IPs or their existing IPs like unreal, they'd have actually won loyal customers Instead of those who just go for the free games.

[killamch89]

57 minutes ago, m76 said:

Had they spent half of that cash to fund development of new IPs or their existing IPs like unreal, they'd have actually won loyal customers Instead of those who just go for the free games.

It's not just that - if they'd also put some of that into developing the Epic Games store with useful and relevant features, they'd gain some customers as well. The only reason I even have the Epic Games launcher is primarily because of Rocket League - there's nothing appealing about their platform at all and Epic games store still lacks some basic features from launch.

[skyfire]

I think spending on good brands comes later they need to acquire the people who are dedicated to the platform. something like steam has. so they are pushing for the same reason. 

[killamch89]

12 hours ago, skyfire said:

I think spending on good brands comes later they need to acquire the people who are dedicated to the platform. something like steam has. so they are pushing for the same reason. 

Quite frankly, Epic isn't really offering anything that makes it any different from Steam and as a result, they're not getting anywhere with that.

[skyfire]

16 hours ago, killamch89 said:

Quite frankly, Epic isn't really offering anything that makes it any different from Steam and as a result, they're not getting anywhere with that.

Indeed many game design assets and the game design tools are on steam. what does EPIC has? nothing. they just want to take over the american market by side lineing google and apple and other american brands.