Friday December 07, 2018

The Epic Games Store Is Now Live

Yesterday we reported that Epic Games was launching its own game store that would only take a 12% cut of sales compared to the 30% that the Steam Store takes. Today I'm happy to report that the Epic Games Store is now live. From December 14th to December 27th the game Subnautica will be free and the free game will change every two weeks throughout 2019. Epic Games is funding the giveaways. An extended interview with Epic Games founder Tim Sweeney elaborates on the costs of running a digital storefront, VR support, its DRM policy and more.

While running Fortnite we learned a lot about the cost of running a digital store on PC. The math is quite simple: we pay around 2.5 to 3.5 percent for payment processing for major payment methods, less than 1.5 percent for CDN costs (assuming all games are updated as often as Fortnite), and between 1 and 2 percent 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 percent are marking up their costs by 300 to 400 percent. But with developers receiving 88 percent of revenue and Epic receiving 12 percent, this store will still be a profitable business for us. The Epic Games store is a long-term effort that we'll be extending and improving for years. Ultimately, we hope competition between stores means better deals for all developers!