Epic Games Store Continues to Grapple with Major Issue Half a Decade On
The Epic Games Store persistently grapples with a substantial issue that has plagued it since its inception, even after five years in the market
Article Key Points
The Epic Games Store is still not profitable despite being in the market for almost five years and offering free games and exclusive releases.
In the ongoing legal battle between Epic and Google, it has been acknowledged that the store is incurring higher operational costs compared to its earnings from game sales. The store's objective of capturing a minimum of 50% market revenue in PC gaming has not been met, as Steam continues to be the preferred platform among PC gamers.
The Epic Games Store, despite its nearly five-year presence in the market, has not yet achieved profitability. Since its launch, the store has fiercely competed with Steam by offering free games and exclusive releases like Tchia, Alan Wake 2, and Salt and Sacrifice to expand its customer base. Although the store debuted in December 2018 and offered a multitude of free games, it appears this strategy has not sufficiently incentivized users to spend their money on the platform rather than on Steam.
As per The Verge's recent report, despite its years of existence, the store has yet to generate any profits. This revelation has emerged from documents related to the ongoing Epic vs. Google court case. The CEO of the platform, Steve Allison, has acknowledged that the Epic Game Store is currently spending more money on its operations than it is earning through game sales. Initially, the platform aimed to capture at least 50% of the PC gaming market revenue, but it appears to fall short of that target as Steam continues to be the preferred choice for PC gamers.
Recent times have been unfavorable for Epic Games as the company had to let go of 870 employees, representing a 16% reduction in staff. This action, although not unique to Epic Games, suggests a decline in their financial situation. CEO Tim Sweeney explained that the company's focus on profitability led to these layoffs, despite the success of games like Fortnite. The company recognized the need to make budget adjustments to secure a stable future.
Despite facing financial challenges, the Epic Games Store continues its tradition of offering free games to gamers. Currently, players can claim Turnip Boy Commits Tax Evasion on the Epic Games Store. This endearing game draws inspiration from the mechanics and style of the Legend of Zelda series, allowing players to assume the role of Turnip Boy, a comical character burdened with a debt to the mayor. The game will be available for free until November 9, when it will be replaced by Golden Light. Golden Light is an over-the-top FPS roguelike game with a strong resemblance to Doom, promising an engaging experience for genre enthusiasts.
The Epic Games Store is a digital storefront for Windows PC and macOS developed and managed by Epic Games. It was first introduced in December 2018 and functions as both a website and a standalone launcher.
Editor's P/S
As a Gen Z netizen, I have mixed feelings about the Epic Games Store. On the one hand, I appreciate the free games and exclusive releases that the store offers. On the other hand, I am concerned about the store's profitability and its impact on the gaming industry.
I think it's great that the Epic Games Store offers free games and exclusive releases. This makes it a more attractive option for gamers, especially those who are on a budget. I have personally claimed several free games from the store, including some that I would not have otherwise been able to afford. I also appreciate the store's exclusive releases, which give gamers the opportunity to play games that they would not be able to find anywhere else.
However, I am concerned about the Epic Games Store's profitability. The store has been in operation for almost five years, and it has yet to turn a profit. This is a worrying sign, as it suggests that the store is not sustainable in its current form. I am also concerned about the store's impact on the gaming industry. The Epic Games Store has been accused of unfair competition, as it has been offering exclusive releases that would otherwise be available on Steam. This has led to some tension between Epic Games and other gaming companies, such as Valve.
Overall, I think the Epic Games Store has the potential to be a great platform for gamers. However, I am concerned about the store's profitability and its impact on the gaming industry. I hope that Epic Games can address these concerns and make the store a more sustainable and competitive option for gamers.
