video game stores – Techdirt (original) (raw)

Ubisoft Runs Away From Epic Store And Back To Steam

from the they-be-back dept

It’s been a long while since we last discussed the platform war that started between Steam and Epic several years back. The crux of the situation was that Epic began offering a far better revenue split for game publishers compared with Steam, with something like a 10-20% delta in how much of the revenue Epic takes versus Steam. This led to all kinds of public reactions, particularly as Epic began gobbling up game and publisher exclusives as part of that revenue split offering. In general, the public sentiment was essentially: yes, pay publishers more, but to hell with your exclusives.

Ubisoft was one of the publishers that jumped into Epic’s arrangement back in 2019. At the time, the company said Steam’s revenue split made remaining on the store unattractive. Well, it’s three years later, and if you want to take the temperature on how well Epic is doing in keeping publishers away from Steam, guess who just got back on Valve’s platform?

A page for 2020’s Assassin’s Creed Valhalla was officially added to Steam Monday, listing a December 6 launch date on the platform. Ubisoft has also told Eurogamer that 2019’s Anno 1800 and Roller Champions will be coming to Steam, confirming earlier rumors to that effect.

“We’re constantly evaluating how to bring our games to different audiences wherever they are, while providing a consistent player ecosystem through Ubisoft Connect,” a Ubisoft spokesperson said in a statement provided to the press.

Ubisoft isn’t a one-off case, either. Activision Blizzard had also been off of Steam for some time but recently came back to the platform.

So, what does this mean? It means there is more to the value of a platform than just a revenue split agreement. Say what you want about Steam and how it operates, but the platform has built a robust following and a massive market share percentage. Between that and the familiarity gamers have with Steam, the fact is that the delta in revenue splits may not make up the difference for publishers looking to move the most amount of titles.

The platform wars aren’t over, of course, but they also aren’t going to end in a trouncing by one side or the other.

Filed Under: exclusives, platform wars, video game stores, video games
Companies: activision blizzard, epic, ubisoft, valve

The EPIC Effect: Microsoft Changes Revenue Split To Match EPIC Store, Steam Holds Firm

from the competition-is-amazing dept

Way back when Epic released its Epic Store PC game storefront, the release of this new competitor to Steam focused on two major selling points. The first was timed exclusives that it shelled out tons of money for, allowing it to sell games the public couldn’t get anywhere else for a certain period of time. This pissed off lots of people, as the public generally doesn’t like exclusives. That said, Epic did mention that it would end its exclusivity practices if the rest of the gaming storefront world, especially Steam, mirrored the Epic Store’s second key selling point, which was a far more favorable split offered to game developers than the “industry standard” 70/30 split that sees places like Steam getting nearly a third of game revenue just for hosting the game on its platform. Instead, Epic’s store has a 88/12 split, meaning the platform is willing to take less than half of the revenue Steam extracts from gamemakers.

In other words, Epic positioned its exclusivity program as merely a method to get the other storefronts to take less money away from game developers, which softened the blow with the public and surely made it a great many fans in the gaming industry.

Well, Steam hasn’t caved yet. But Microsoft did just announce that it is moving to match the splits offered by the Epic Store, marking some movement in the industry and perhaps an indication of things to come.

“As part of our commitment to empower every PC game creator to achieve more, starting on August 1 the developer share of Microsoft Store PC games sales net revenue will increase to 88%, from 70%,” Head of Xbox Game Studios Matt Booty wrote on the Xbox blog. “A clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so.”

The move is the latest in a bit of a sea change for game revenues. In a survey released yesterday by the Game Developers Conference, only 3% of respondents thought the once-standard 30% take by a platform was justified. The Epic Games Store broke onto the scene by notably only taking 12% of the revenue. Over the last year, both Apple and Google have lessened their cuts for games making under $1 million. Steam, meanwhile, has held more or less firm on its 30% take, with the cut lessening the more money a game makes, a system that makes more money for larger, richer publishers, while penalizing smaller indies.

Funny what a little bit of competition can do. While it is certainly notable that Steam is watching all of these changes with its proverbial arms folded, doing no sort of splits-changing of its own, maybe that’s okay and maybe there’s a place for that. Or maybe the pressure continues to build and the Epic Store does end up being the preferred storefront for smaller titles and indie developers and Steam eventually does have to come down from the 70/30 split.

All I know for sure is that without Epic entering this arena and pushing the envelope, be it for altruistic reasons or otherwise, it seems unlikely that even Apple, Google, and Microsoft would have made any of these changes. That’s why, whatever you think of the Epic Store, the added competition certainly is nice.

Filed Under: competition, epic store, steam, video game stores, video games
Companies: epic, microsoft, valve

from the free-as-in-advice dept

The Epic Store is still around, still rocking its exclusivity deals with game publishers, and is still trying really hard to unseat Valve’s Steam as the dominant PC gaming platform of choice. Truthfully, the news about the ongoing battle between Steam and Epic has sort of quieted down. That ultimately is probably not a good sign for Epic. If there is unseating to be done, it’s going to have to be done loudly, publicly, and with much coverage in the press.

Which is perhaps why Epic recently decided to strike a deal with Rockstar to give away Grand Theft Auto 5 for free. Yes, free as in you pay no money and yet own the game forever. Rockstar’s reasoning behind this is quite easy to understand: the company already made a hilarious sum of money selling the game for nearly a decade and the game’s ecosystem and players have since moved into the online MMO realm where the game now makes hilarious sums of money via microtransactions. More players means more revenue for Rockstar.

And for the Epic Store, this is sort of free game is a great way to entice gamers to your store, gin up a chunk of new user adoption, and really show the public how great your PC games store performs–, oh son of a bitch.

The Epic Games Store went offline on Thursday morning as users anticipating the launch of Rockstar Games’ Grand Theft Auto 5 for free on the platform overloaded its servers. News of the game’s free release leaked early on Wednesday on the Epic Games Store Twitter account.

The website and launcher both went down just before 11 a.m. EDT, when the Premium Edition of the game for Windows PC was scheduled to go live. “We are currently experiencing high traffic on the Epic Games Store,” Epic Games said on Twitter.

On the one hand: yay, the strategy worked and tons of people flocked to the Epic Store to get the free game. On the other hand: crap, the strategy also backfired, because now a whole bunch of people’s first impression of the store is that it’s unstable and cannot support the public demand. Whoops.

This seems to be something of a trend for Epic. Great on the marketing and PR messaging, much less great on the execution. And quite frankly, it’s not as though Epic shouldn’t have known it was going to have a stampede on its hands.

Despite being six and a half years old, GTA 5 is clearly still popular. It goes beyond just the game being available for free, too: 2019 was one of Rockstar Games’ best sales years for GTA 5. GTA 5 was initially released in September 2013 on PlayStation 3 and Xbox 360, and again in 2014 on Xbox One and PlayStation 4. In 2015, it came to Windows PC. With the PC launch, the game found a new audience with the modding scene and in Grand Theft Auto Online. The game’s popularity on Twitch ballooned in the past year with role-playing servers in GTA Online.

Now, as of the time of this writing, 2pm CST, the problems seem to have been fixed. I know this because I went and got the game for free myself, even though I already own it on my console. And, while this was my first time on the Epic Store myself, you’ll have to go elsewhere for my take on how good or bad the store itself is.

But as for this marketing strategy by Epic? I give it a meh.

Filed Under: epic store, gta 5, overwhelmed, video game stores, video games
Companies: epic, rockstar