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Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusive

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rjohnson11
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2019/09/23 09:24:48 (permalink)
https://arstechnica.com/gaming/2019/09/epic-seems-to-have-paid-10-5-million-for-controls-pc-exclusivity/
 
Control is one of the better single player releases of this year already, and has been enough of a success for Remedy and 505 Games to launch a content roadmap stretching all the way to 2020. The game is being served on PC exclusively through the EPIC Games Store, which, besides offering developers higher revenues than Steam, has also launched an all-out campaign to secure high-profile exclusives such as Control and Metro: Exodus (even if some of them are timed exclusives).

Now, an Italian earnings report from 505 games highlights that the developers received a lump, $10.5 million upfront from EPIC; according to the report, "Revenue comes from the computer version of Control (...) The game was released on August 27 but the structure of the marketplace who requested the PC exclusivity has made possible to gain the revenue starting from this quarter." It appears EPIC is offering a safety net for developers in exchange for the exclusivity deals, paying upfront the amount of revenue developers expect to receive from the games' sales throughout the PC platform. In this case, the $10.5 million correspond to a total of 200,000 individual sales of Control. Until that number is achieved, EPIC keeps the full revenue from every sale. Any units sold starting from 200,000, and the revenue is split between the developer and EPIC. It's a win-win, really: EPIC gets more and more traction and publicity on its store, and developers guarantee they get the minimum amount they'd expect to earn by selling the game across the full spectrum of PC marketplaces.
 
Actually this seems quite fair in my opinion. 

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    blackforce
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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/23 14:44:39 (permalink)
    it is fair steam is a rip off for dev and gamers, they will never get another dime from me steam that is.
    i will buy from microsoft, orgin, epic and even bethesda and any other platform before steam.
    oh  i will buy from greenman gaming long as they offer games for the other platforms other then steam.
    #2
    Cool GTX
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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/23 15:28:34 (permalink)
    Interesting story, that was an impressive guarantee - $10.5 million

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    Brad_Hawthorne
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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/25 09:45:10 (permalink)
    Epic isn't going to give just anyone 10.5 mil all the time. Good luck with that premise.
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    NazcaC2
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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/29 07:18:02 (permalink)
    Brad: Of course not. The value varies game to game.

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    kougar
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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/29 12:28:25 (permalink)
    Doesn't matter, that kind of business model isn't sustainable.
     
    Epic is trying to forcibly build a base for its store to stand on, the only question is will they run out of money before it becomes sufficiently profitable. Microsoft spent billions to buy into the phone OS market, which failed. Intel spent billions to buy into the phone hardware market, which also failed. Throwing money away to buy into a well-established market most of the time ends in failure, and limited time exclusivity only works for a limited time. 


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    GTXJackBauer
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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/29 20:26:44 (permalink)
    kougar
    Doesn't matter, that kind of business model isn't sustainable.
     
    Epic is trying to forcibly build a base for its store to stand on, the only question is will when they run out of money...most of the time ends in failure.


    Exactly   
    post edited by GTXJackBauer - 2019/09/29 20:28:47

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    Hoggle
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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/30 02:50:50 (permalink)
    Brad_Hawthorne
    Epic isn't going to give just anyone 10.5 mil all the time. Good luck with that premise.




    Really? Remedy has never released a bad game but it's not like they have built excitement with gamers like they did with Max Payne and it's bullet time. Alan Wake was a good game but didn't really catch fire with gamers and Epic would have spent that money after Quantum  Break and it's boring live action scenes that went on for long enough to make a sandwich during. It's just not a studio people would expect a knock out hit from every time they release a game. I think though that Remedy has a great track record though and recommend checking out the games they have released even if they don't see sequels. 
     
    I am also wondering though what the deal between NVIDIA and Epic to give out free copies of Control did. I would assume that deal would have taken a big chunk out of that $10.5 million number.

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    transdogmifier
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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/30 05:28:05 (permalink)
    I won't buy off of Epic...I hate steam too, but I've been given gifts there.
     
    I still want the games on media that install locally and have no need for a damn store front...
     
     

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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/30 09:50:05 (permalink)
    Fact is: None of us know the terms and yet some claim we know how to run their business more than they do. None of us do. We're not shareholders and investors and we don't know the full picture.

    Fact: Epic pays the developer and Epic also makes a profit off that game's sales. What we don't know is exactly everything.

    Epic has been in business since 1991. Regardless of what anyone thinks, they know what they're doing. The media knows little and so do we, honestly.

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    diatribe
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    Re: Exclusivity Costs: EPIC Games Store's Control Cost $10.5 million to Become PC Exclusiv 2019/09/30 10:42:14 (permalink)
    transdogmifier
    I won't buy off of Epic...I hate steam too, but I've been given gifts there.
     
    I still want the games on media that install locally and have no need for a damn store front...
     
     



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