How Does Epic Games Store Make Money?
Epic Games Store, launched in December 2018, has quickly gained popularity among gamers. But how does this digital distribution platform make money? Let’s dive into the various revenue streams that keep Epic Games Store running smoothly.
Revenue Stream 1: Game Sales
The most straightforward way Epic Games Store generates revenue is through game sales. Just like other digital distribution platforms, Epic offers a wide range of games, including new releases, indie titles, and classics. When you purchase a game on the store, a portion of the sale goes to Epic Games.
One unique aspect of Epic Games Store is its revenue-sharing model. Developers receive 88% of the revenue from game sales, which is significantly higher than the 30% cut typically offered by other platforms. This generous model has attracted many developers to publish their games on Epic Games Store, leading to a diverse and appealing game library.
Revenue Stream 2: In-Game Purchases
In addition to game sales, Epic Games Store also generates revenue through in-game purchases. Many games on the platform offer in-game items, such as skins, cosmetics, and additional content. When players purchase these items, a portion of the revenue goes to Epic Games.
Epic Games Store has also implemented a feature called “Epic Games Store Credits,” which allows players to purchase in-game items using store credits. This feature has made it easier for players to buy and manage their in-game purchases.
Revenue Stream 3: Epic Games Store Credits
Epic Games Store Credits are a virtual currency that can be used to purchase games, in-game items, and other digital content on the platform. Players can purchase these credits using real money, and Epic Games earns a profit from the exchange rate difference.
One of the reasons for the success of Epic Games Store Credits is the “Epic Games Store Credits Bundle,” which offers a discount on the purchase of credits. This bundle has incentivized players to buy more credits, leading to increased revenue for Epic Games.
Revenue Stream 4: Advertising
Epic Games Store also generates revenue through advertising. The platform displays ads from various partners, and Epic Games earns a portion of the ad revenue. While the exact amount of ad revenue is not disclosed, it is a significant source of income for the company.
One of the unique aspects of Epic Games Store’s advertising model is that it does not display ads in games. Instead, ads are displayed on the store’s homepage and other user interface elements. This approach ensures that the gaming experience remains uninterrupted.
Revenue Stream 5: Unreal Engine Subscriptions
Epic Games Store is closely tied to Unreal Engine, the popular game development engine created by Epic Games. Unreal Engine is used by many game developers to create their games, and Epic Games generates revenue through Unreal Engine subscriptions.
Developers can choose between a free version of Unreal Engine with limited features or a paid subscription that offers access to all features. Epic Games Store earns revenue from the paid subscriptions, which provide developers with additional tools and resources to create high-quality games.
Revenue Stream 6: Partnerships and Sponsorships
Epic Games Store has formed partnerships with various companies, which have helped the platform grow and generate revenue. For example, Epic Games Store has partnered with Microsoft to offer cross-platform play between PC and Xbox One games. This partnership has helped increase the user base of Epic Games Store and generate additional revenue through game sales.
Epic Games Store also earns revenue through sponsorships and collaborations with other companies. These partnerships often involve promotional campaigns and exclusive deals, which help drive traffic to the platform and increase sales.
Revenue Stream 7: Epic Games Store Exclusive Titles
Epic Games Store has gained a reputation for offering exclusive titles, which have helped attract players to the platform. When a game is exclusive to Epic Games Store, it generates significant buzz and interest among gamers. This exclusivity has led to increased sales and revenue for the platform.
One of the most notable examples of an Epic Games Store exclusive is “Hollow Knight,” which was released exclusively on the platform. The game’s success helped showcase the potential of Epic Games Store as a viable alternative to other digital distribution platforms.
In conclusion, Epic Games Store generates revenue through various channels, including game sales, in-game purchases, Epic Games Store Credits, advertising, Unreal Engine subscriptions, partnerships, sponsorships, and exclusive titles. By focusing on these revenue streams, Epic Games Store has managed to establish itself as a significant player in the digital distribution market.