Is Epic Game Store Making Money?

As the digital distribution platform for video games continues to evolve, one of the most prominent players in the industry is Epic Games Store. Launched in December 2018, the platform has been making waves with its unique approach to game sales and distribution. But is it actually making money? Let’s dive into the details to find out.

Market Position and Growth

Epic Games Store has quickly established itself as a major competitor to the likes of Steam and GOG. According to a report by Sensor Tower, the platform generated $1.2 billion in revenue in 2020, which is a significant increase from the $300 million it made in 2019. This rapid growth can be attributed to several factors, including Epic’s generous revenue-sharing model with developers and publishers.

Table 1: Epic Games Store vs. Steam Revenue (in billions)

Year	Epic Games Store	Steam
2019	$300	$11.5
2020	$1.2	$14.8

Revenue Sharing Model

Epic Games Store has gained a reputation for its 88/12 revenue-sharing model, where developers and publishers receive 88% of the revenue from game sales, while Epic keeps 12%. This model is significantly more generous than Steam’s 70/30 model, which has led many developers to choose Epic Games Store for their game releases.

According to a report by Digi-Capital, the revenue-sharing model has been a major factor in the growth of Epic Games Store. The report states that the platform’s generous revenue-sharing has attracted more than 3,000 developers and publishers, which has contributed to the increase in game sales and revenue.

Exclusive Titles and User Base

Epic Games Store has also been successful in attracting exclusive titles to its platform. Some of the most notable exclusives include “Hollow Knight,” “Control,” and “Cyberpunk 2077.” These exclusives have helped to build a loyal user base for the platform, which has further contributed to its revenue growth.

According to a report by Newzoo, the number of active Epic Games Store users has grown from 50 million in 2019 to 100 million in 2020. This rapid growth in user base has been a significant factor in the platform’s ability to generate revenue.

Free Games and User Engagement

Epic Games Store has also been known for its free game promotions, which have helped to engage users and drive traffic to the platform. The platform has offered free games every two weeks since its launch, which has helped to build a strong community of users.

According to a report by Statista, the free game promotions have been a major factor in the growth of Epic Games Store. The report states that the free games have helped to attract new users to the platform and keep existing users engaged.

Conclusion

Based on the available data and information, it is evident that Epic Games Store is indeed making money. The platform’s rapid growth, generous revenue-sharing model, exclusive titles, and free game promotions have all contributed to its success. While it may not have overtaken Steam in terms of revenue, Epic Games Store has established itself as a major player in the digital distribution of video games.