In a recent development, Steve Allison, the General Manager of Epic Games Store, has revealed that the platform is not yet profitable. Instead, the focus is on the growth of the platform as a main priority.
Epic Games unveiled its own storefront for PC games in 2018, hoping to compete with Valve’s Steam and challenge its market dominance. Epic has been offering various promotions and deals to game developers, such as a reduced revenue share of only 12%, allowing developers to earn 88% from sales on the Epic Games Store, compared to Valve’s 30% cut on Steam.
Furthermore, Epic has been investing heavily to incentivize developers to sell their games exclusively on the Epic Games Store without deducting any revenue share. They have also spent millions of dollars on weekly free game giveaways. However, just last month, Epic announced plans to lay off approximately 830 employees, which accounts for 16% of their total workforce.
TLDR: Despite not yet making a profit, Epic Games Store is focusing on its growth as a platform. They have been trying to lure developers away from Steam by offering better revenue sharing terms and investing in exclusive deals. However, the company recently announced a significant round of layoffs.