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Fortnite dev launches Epic Games Store that takes 12% of revenue

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Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#31
post #27

Well this makes me feel awkward as a Unity dev. I saw that they'll allow unity based games on their new store but I wonder if that's just for the short term. Kind of makes me wonder if I should've chosen Unreal.

No I’m sure they wouldn’t do that, at least as long as Tim is in charge.

Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#32

Obviously there's a non-zero cost for developers to publish thru multiple stores, so it makes sense to try to incentivize them with a greater share of revenue. It would be interesting if they tried to leverage the popularity of Fortnite to also do this on Android.

There's also a cost for the customer; they have to use multiple launchers.

Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#33
I'd be more excited for this much needed competition if it weren't a company that survives by taking advantage of children's naivety of money and natural impulses to sell virtual outfits and animations at sickening prices. App store cuts are ridiculously high, but at least they're not taking candy directly from babies.

Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#34
Official announcement - https://www.unrealengine.com/en-US/blog/announcing-the-epic-...

"Developers receive 88% of revenue. There are no tiers or thresholds. Epic takes 12%. And if you’re using Unreal Engine, Epic will cover the 5% engine royalty for sales on the Epic Games store, out of Epic’s 12%."

"From Epic’s 12% store fee, we’ll have a profitable business we’ll grow and reinvest in for years to come!"

This is great news for indies who Steam seems to be ignoring[1] lately in favor of AAA. Maybe that will eventually put enough pressure on them to at least reduce their cut. There's been increasing concern over whether it's worth it for indies given the lack of visibility. If you have to push an audience there anyway, is it worth the 30%? Jason Rohrer[2] and Positech Games[3] for example have been successful outside of Steam keeping a much larger piece of the pie.

1. http://greyaliengames.com/blog/steams-discovery-algorithm-ki...

2. https://www.gamesindustry.biz/articles/2018-03-12-jason-rohr...

3. https://www.positech.co.uk/cliffsblog/2018/11/23/selling-gam...

Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#35

If Apple loses their anti-trust case in court and is forced to open iOS to alternative app stores, does that mean the consoles would be forced to open up their platform as well? It would be nice to have some of these alternative stores on the PS4 and XBox.

That's an interesting thought, but I wonder if it's a different context. Today, you can go to many physical stores to purchase console games, you don't HAVE to use the PS4/Xbox digital stores only. You can even purchase the digital codes from many stores to redeem. I don't know much about the Apple case, but I assume that's maybe different because you HAVE to use Apple's iOS store. There isn't alternatives like physical stores to buy your apps to load them onto your phone.

Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#36
post #34

Official announcement - https://www.unrealengine.com/en-US/blog/announcing-the-epic-... "Developers receive 88% of revenue. There are no tiers or thresholds. Epic takes 12%. And if you’re using Unreal Engine, Epic will cover the 5% engine royalty for sales on the Epic Games store, out of Epic’s 12%." "From Epic’s 12% store fee, we’ll have a profitable business we’ll grow and reinvest in for years to come!" This is gr…

This link has some Q&A with Tim too with more details:

https://www.eurogamer.net/articles/2018-12-04-fortnite-maker...

Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#37

If Apple loses their anti-trust case in court and is forced to open iOS to alternative app stores, does that mean the consoles would be forced to open up their platform as well? It would be nice to have some of these alternative stores on the PS4 and XBox.

It's very unlikely for the consoles to be opened up in a technical sense. At least on the Xbox, the store is not very pluggable, and allowing third parties to sign code just ain't going to happen.

I would expect relief here to be financial. No way is MS going to relinquish platform control.

Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#38
One of the things Steam's 30% cut subsidizes is the generation of unlimited free license keys for developers to do with what they please. So, for instance, if I am an independent developer, I can sell my game on Steam. Say I sell 5,000 copies. I can then turn around and generate 25,000 keys gratis, and sell those on my website (paying maybe a 5-8% fee to my payment processor, but otherwise taking everything). Those keys activate on Steam, at which point my customers get the benefits of Steam and I pay nothing for the bandwidth or upkeep.

This also allows me to give keys to other vendors, like Humble or GreenManGaming, who do take a cut (in some cases close to Steam's 30%, in other cases closer to 10-12%). Those vendors may choose to discount my game beyond the discount I offer by giving up more of their margin to the consumer.

It is not uncommon to see games on Steam where the origin of user reviews is 50% Steam purchases, 50% off-site key activations, which implies that Steam's effective margin may be as low as 15%.

Now, I think most independent developers are willing to sell on any platform who will have them and for whom the marginal costs of submitting / uploading are lower than gross sales, so certainly I don't think Epic is making a bad move here and I suspect they'l get decent developer uptake, but I also think the sort of "topline sticker comparison" obscures some of what's going on.

To some extent there may be value in having this discussion a week from now when Epic has rolled out the store and we have a better idea of how other considerations stack up.

Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#39
post #33

I'd be more excited for this much needed competition if it weren't a company that survives by taking advantage of children's naivety of money and natural impulses to sell virtual outfits and animations at sickening prices. App store cuts are ridiculously high, but at least they're not taking candy directly from babies.

Companies have sought to take money from parents via their children for as long as childrens' products have existed. Epic isn't doing anything new here.

At least skins and other virtual assets aren't filling our landfills with plastic crap.

Re: Fortnite dev launches Epic Games Store that takes 12% of revenue

#40

Obviously there's a non-zero cost for developers to publish thru multiple stores, so it makes sense to try to incentivize them with a greater share of revenue. It would be interesting if they tried to leverage the popularity of Fortnite to also do this on Android.

Tim Sweeney said in an interview that they are planning on launching their store on Android in 2019.

https://www.gameinformer.com/2018/12/04/tim-sweeney-answers-...

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