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Pargon

Member
Oct 27, 2017
12,016
Are they really "paying through the nose to build their store" though?
It seems more like they're paying to deny consumer choice than spending it on improving their store to be more competitive with other platforms.
 

caylen

Publisher - Riot Games
Verified
Oct 27, 2017
139
santa monica
What do you think will happen in 2-3 years time that would make players choose Epic Store over Steam or other alternatives? What exactly is there to lock people into EGS rather than tolerate it for exclusives and nothing else?

No one but Epic really knows that timeline, but that's a ton of time to make platform changes, read & develop for market viability, and find better niches.

I think claiming they don't have a "well thought out plan" is a bit bullish - I think they have quite a few plans, they just haven't made it known publicly, because there's zero advantage and full risk to that.

Their launch strategy is their product strategy: launch with meaningful benefit to developers, and focus on having better titles vs a better platform, because it is not possible nor fiscally effective to launch a totally feature complete competitor to something that's been around for a decade with the biggest userbase in the world. In this analogy: think how Facebook when it launched had far less user-facing functionality than MySpace and the rest of the social networks at the time. it was focused on a specific audience & that user groups desired feature set, vs competing across all fronts.

Epic is taking the arcum's razor approach: titles drive active users more than any specific feature, so money put towards that will drive the business health goals better than any feature developed. It works, and likely is working for them pretty well for that god metric internally. This isn't me advocating the approach, but I am saying that it's probably working better than expected for them, because it's a pretty reliable strategy towards that particular success criteria.

The challenge I see is what you see in core gaming communities, press articles, influencer videos, and the general vibe: that it's really difficult for players, be they potential or current active, to advocate the Epic Games Store. Exclusivity builds an active audience, but it doesn't build fandom. Neither do existing features, fwiw - fandom is built on earned trust, new functionality, better experiences, better communities and something to be excited for.

The lack of a shopping cart, the correct amount of exclusive titles, or revshare isn't Epic's problem right now: it's that they haven't built or nurtured a consumer audience to advocate the EGS, or guide them to making a better EGS, and none of their publishing so far is conductive to having said consumer audience. So they'll likely do OK on the MAU, revenue targets, and developer sentiment feedback over the next year or so, but that won't be sufficient to achieve critical mass over a Steam like incumbent. My guess is eventually they'll figure this part out, and that's when it'll be exciting - but time will tell.
 

Alexandros

Member
Oct 26, 2017
17,811
Epic is taking the arcum's razor approach: titles drive active users more than any specific feature, so money put towards that will drive the business health goals better than any feature developed. It works, and likely is working for them pretty well for that god metric internally. This isn't me advocating the approach, but I am saying that it's probably working better than expected for them, because it's a pretty reliable strategy towards that particular success criteria.

I honestly doubt that it's working all that well for them. Having to do a fire sale a couple of months after they declared that they would not be doing any store-wide sale events would seem to suggest that they had to take some drastic measures to hit whatever internal MAU goals they had set.
 

caylen

Publisher - Riot Games
Verified
Oct 27, 2017
139
santa monica
Thanks for this post. If they can somehow leverage Unreal Engine that is a potential _massive_ advantage. Any thoughts on how they could do this?

Personal thoughts (not Riot's obv), and I am not a developer, but there's a lot to be done here with the advantage that's just now starting to be seen by developers. The biggest by far is the platform-agnostic capabilities of the engine being matched with feature-complete PC integration development, meaning that if you are building X game for PS/XBox/Switch/Mobile?, the UE/EGS hooks (think things like friends lists, QA automation for your code, microtransaction capability, controlling/managing user entitlements) mean that the title is almost parity developed for EGS without too much additional work. This is what Valve did with Steamworks originally btw, and it was a killer advantage for them. The fact that your Unreal Engine royalties also go down if you go EGS is pretty significant to many AA/big indie developers, too. Finally, Unreal Engine's tech stack I'm told has been pretty adaptable from revision to revision, so if you have an older game built with UE, there's a good chance you can modernize/HD' it up for an EGS release much easier than any other PC storefront - but I don't think this is as much as an advantage as others do, simply because of how many of the publishers with back catalogs don't struggle for development challenges here (it's purely opportunity cost vs. tech challenge).

When I look at EGS's development roadmap, most of the eggs seem to be focused on this basket, and in terms of business strategy (not player satisfaction strategy!) it seems like a smart play. But, as I alluded in my other post, I think they'll need to eventually put way more investment into player-facing features towards advocacy than developer comfort. We shall see!
 

thebishop

Banned
Nov 10, 2017
2,758
Personal thoughts (not Riot's obv), and I am not a developer, but there's a lot to be done here with the advantage that's just now starting to be seen by developers. The biggest by far is the platform-agnostic capabilities of the engine being matched with feature-complete PC integration development, meaning that if you are building X game for PS/XBox/Switch/Mobile?, the UE/EGS hooks (think things like friends lists, QA automation for your code, microtransaction capability, controlling/managing user entitlements) mean that the title is almost parity developed for EGS without too much additional work. This is what Valve did with Steamworks originally btw, and it was a killer advantage for them. The fact that your Unreal Engine royalties also go down if you go EGS is pretty significant to many AA/big indie developers, too. Finally, Unreal Engine's tech stack I'm told has been pretty adaptable from revision to revision, so if you have an older game built with UE, there's a good chance you can modernize/HD' it up for an EGS release much easier than any other PC storefront - but I don't think this is as much as an advantage as others do, simply because of how many of the publishers with back catalogs don't struggle for development challenges here (it's purely opportunity cost vs. tech challenge).

When I look at EGS's development roadmap, most of the eggs seem to be focused on this basket, and in terms of business strategy (not player satisfaction strategy!) it seems like a smart play. But, as I alluded in my other post, I think they'll need to eventually put way more investment into player-facing features towards advocacy than developer comfort. We shall see!

But unreal engine already has these integrations for Steam, and already supports a lot more features than EGS even has in its roadmap (i.e. because EGS is a bad, primitive platform).

https://www.unrealengine.com/en-US/blog/steam-support-in-unreal-engine-4
 

Pyro

God help us the mods are making weekend threads
Member
Jul 30, 2018
14,505
United States
Really can't blame devs for however much they're getting to put it on their store combined with the better cut.
 

Ploid 6.0

Member
Oct 25, 2017
12,440
Kills me they'll spend this much money on a store but not on Unreal. This amount of cash would've let you market Unreal east.
I personally miss Paragon, it had to die so Fortnite BR could have more devs. Fortnite Save The World still isn't f2p and I've been waiting to try that for so long. I was going to buy the early access but it was supposed to go free only a few months later during the time.
 

z1ggy

Member
Oct 25, 2017
4,191
Argentina
Your own link shows him talking about the future when more developers who are doing better thanks to a higher revenue split compete for users. This is reiterated in his recent tweets:

"If the Epic strategy either succeeds in building a second major storefront for PC games with an 88/12 revenue split, or even just leads other stores to significantly improve their terms, the result will be a major wave of reinvestment in game development and a lowering of costs.

Will the resulting 18% increase in developer and publisher revenue benefit gamers? Such gains are generally split among (1) reinvestment, (2) profit, and (3) price reduction. The more games are competing with each other, the more likely the proceeds are to go to (1) and (3).

So I believe this approach passes the test of ultimately benefitting gamers after game storefronts have rebalanced and developers have reinvested more of their fruits of their labor into creation rather than taxation."


That all makes sense imo. Your gnomes comparison is disingenuous.
Basic economy says something very clear: Cost doesnt define price. So your and Tim claim are basically bullshit.
 

Umbrella Carp

Banned
Jan 16, 2019
3,265
They're hoping that if they throw enough Fortnite money at it, they can build something that resembles what it took Valve years to achieve in far less time. The biggest tell from them is their own haste to get results, because that tells me that they're concerned that Fortnite's best days are on the clock, and when that income stream slows, suddenly EGS becomes an expensive gamble to keep throwing money at.
 

Sheepinator

Member
Jul 25, 2018
28,009
Basic economy says something very clear: Cost doesnt define price. So your and Tim claim are basically bullshit.
No, you're wrong. This is referring to developers breaking even with fewer units sold. It's transparently obvious that competition has driven down prices in games thus far. We went down to $1 on mobile then to free, and AAA games have been $60 since 2006, which would be $77.50 inflation adjusted.
 

Ra

Rap Genius
Moderator
Oct 27, 2017
12,207
Dark Space
I respect a person who doesn't put out a PR statement about why the EGS partnership was going to deliver the best experience to consumers.

He should post of video of himself swimming in a jacuzzi of hundreds McDuck style. Straight cash homie.
 

z1ggy

Member
Oct 25, 2017
4,191
Argentina
No, you're wrong. This is referring to developers breaking even with fewer units sold. It's transparently obvious that competition has driven down prices in games thus far. We went down to $1 on mobile then to free, and AAA games have been $60 since 2006, which would be $77.50 inflation adjusted.

If devs/publishers/Epic wanted lowers prices they would offer it to consumers because they actually took down by competition and thats exactly what EGS brings up....right?

But you are right we better wait for trickle down to get into work! (Which as always worked out right? RIGHT?)
 

Alexandros

Member
Oct 26, 2017
17,811
It's never, ever, ever going to trickle down to customers. Epic is exhibiting strong anti-customer behavior now that they should be trying to court customers, it's foolish to expect them to change their tune if they ever find themselves in a position of power. Epic has made its policy very clear: they'd rather try to force customers than entice them.
 

LewieP

Member
Oct 26, 2017
18,099
No one but Epic really knows that timeline, but that's a ton of time to make platform changes, read & develop for market viability, and find better niches.

I think claiming they don't have a "well thought out plan" is a bit bullish - I think they have quite a few plans, they just haven't made it known publicly, because there's zero advantage and full risk to that.

Their launch strategy is their product strategy: launch with meaningful benefit to developers, and focus on having better titles vs a better platform, because it is not possible nor fiscally effective to launch a totally feature complete competitor to something that's been around for a decade with the biggest userbase in the world. In this analogy: think how Facebook when it launched had far less user-facing functionality than MySpace and the rest of the social networks at the time. it was focused on a specific audience & that user groups desired feature set, vs competing across all fronts.

Epic is taking the arcum's razor approach: titles drive active users more than any specific feature, so money put towards that will drive the business health goals better than any feature developed. It works, and likely is working for them pretty well for that god metric internally. This isn't me advocating the approach, but I am saying that it's probably working better than expected for them, because it's a pretty reliable strategy towards that particular success criteria.

The challenge I see is what you see in core gaming communities, press articles, influencer videos, and the general vibe: that it's really difficult for players, be they potential or current active, to advocate the Epic Games Store. Exclusivity builds an active audience, but it doesn't build fandom. Neither do existing features, fwiw - fandom is built on earned trust, new functionality, better experiences, better communities and something to be excited for.

The lack of a shopping cart, the correct amount of exclusive titles, or revshare isn't Epic's problem right now: it's that they haven't built or nurtured a consumer audience to advocate the EGS, or guide them to making a better EGS, and none of their publishing so far is conductive to having said consumer audience. So they'll likely do OK on the MAU, revenue targets, and developer sentiment feedback over the next year or so, but that won't be sufficient to achieve critical mass over a Steam like incumbent. My guess is eventually they'll figure this part out, and that's when it'll be exciting - but time will tell.

Perhaps they have a plan for this stuff, but they've certainly not demonstrated it to consumers. We do know some of their plans, they have their roadmap, but they just keep delaying everything on it instead of shipping useful features.

I think it is extremely misguided to be spending so much money, generating so much negative user sentiment, just because they wanted to rush their store out.

With your myspace/facebook analogy, what Epic are doing would have been paying popular myspace accounts to delete their account to move over to facebook back when facebook was barely functional.

I completely agree that features (whilst being something that matters) aren't the main reason that people prefer to use Steam. It's because they trust Valve to do right by them, and Valve have spent over 15 years earning that trust. Epic currently haven't particularly done anything to demonstrate they are worthy of that kind of trust, and just seem to be attempting to buy their way into market share and just put out PR fires if and when they come up. They've not shown any strong vision for consumers about what they are trying to build EGS into being, and even contradict themselves plenty (saying EGS's purpose is to advocate for all developers across the world, and then force developers into exclusivity deals that they have no say over by going over their heads to publisher).

I respect a person who doesn't put out a PR statement about why the EGS partnership was going to deliver the best experience to consumers.

He should post of video of himself swimming in a jacuzzi of hundreds McDuck style. Straight cash homie.

Even Devolver Digital, who are extremely self aware 99% of the time, dropped the ball on this and didn't just say "we wanted the money".
 
Oct 27, 2017
12,238
It's never, ever, ever going to trickle down to customers. Epic is exhibiting strong anti-customer behavior now that they should be trying to court customers, it's foolish to expect them to change their tune if they ever find themselves in a position of power. Epic has made its policy very clear: they'd rather try to force customers than entice them.
I dont know why this is so hard to understand. Those pubs are just going to laugh all the way to the bank.
 

opticalmace

Member
Oct 27, 2017
4,030
I'm OK with price parity with Steam if it means (which I presume to still be true) a bigger cut to developers.

I just want to know that the EGS is going to be around for the long haul before putting money into it.
 

BeI

Member
Dec 9, 2017
5,980
I'm OK with price parity with Steam if it means (which I presume to still be true) a bigger cut to developers.

I just want to know that the EGS is going to be around for the long haul before putting money into it.

I'd worry about the safety of your account and games you spent money on too. 2 times in 2 weeks people got the password to my account, and I hardly touch the thing and have never interacted with anyone on it.
 

Alexandros

Member
Oct 26, 2017
17,811
I dont know why this is so hard to understand. Those pubs are just going to laugh all the way to the bank.

Yup. I have it on good authority that they really like making as much money as possible.

I'm OK with price parity with Steam if it means (which I presume to still be true) a bigger cut to developers.

I'm not. Valve is the only company that has invested considerable funds in developing features that make PC gaming better as a platform so I'd prefer that they get a large enough cut to keep improving my experience.
 

Thrill_house

Member
Oct 27, 2017
10,622
I appreciate the honesty. Still feels like a dumb fuck decision by epic. As ive said before, they could have put all this money into their own studios, built a stable of nice exclusives and then released their store. During the development of these games they could have put massive work into their store to make it competitive with Steam. Would have taken longer sure but they wouldn't have recieved anywhere near the hate. Instead folk like me won't touch their store out of spite...considering the barebones bumblefuck scene they got going on over there I ain't missing much lol.

I'll have the same attitude I have had with other devs/pubs. Good luck, see ya in a year...maybe.
 

eonden

Member
Oct 25, 2017
17,085
Perhaps they have a plan for this stuff, but they've certainly not demonstrated it to consumers. We do know some of their plans, they have their roadmap, but they just keep delaying everything on it instead of shipping useful features.

I think it is extremely misguided to be spending so much money, generating so much negative user sentiment, just because they wanted to rush their store out.

With your myspace/facebook analogy, what Epic are doing would have been paying popular myspace accounts to delete their account to move over to facebook back when facebook was barely functional.

I completely agree that features (whilst being something that matters) aren't the main reason that people prefer to use Steam. It's because they trust Valve to do right by them, and Valve have spent over 15 years earning that trust. Epic currently haven't particularly done anything to demonstrate they are worthy of that kind of trust, and just seem to be attempting to buy their way into market share and just put out PR fires if and when they come up. They've not shown any strong vision for consumers about what they are trying to build EGS into being, and even contradict themselves plenty (saying EGS's purpose is to advocate for all developers across the world, and then force developers into exclusivity deals that they have no say over by going over their heads to publisher).



Even Devolver Digital, who are extremely self aware 99% of the time, dropped the ball on this and didn't just say "we wanted the money".
To be fair to most of them, they probably have contracts that forbid them to say that stuff, or push them to say some cleverly masked PR points, as all devs basically seem to always be reading for a guideline when answering that shit even when it makes no sense at all.
 

LewieP

Member
Oct 26, 2017
18,099
To be fair to most of them, they probably have contracts that forbid them to say that stuff, or push them to say some cleverly masked PR points, as all devs basically seem to always be reading for a guideline when answering that shit even when it makes no sense at all.
If they signed a contract that required them to put out misleading statements, that's on them.
 

z1ggy

Member
Oct 25, 2017
4,191
Argentina
It's never, ever, ever going to trickle down to customers. Epic is exhibiting strong anti-customer behavior now that they should be trying to court customers, it's foolish to expect them to change their tune if they ever find themselves in a position of power. Epic has made its policy very clear: they'd rather try to force customers than entice them.
And thats why it isnt working, since we became PC (mostly) gamers because we like options and having certain freedom, not being forced to.
 

TheClaw7667

Member
Oct 25, 2017
1,705
No, you're wrong. This is referring to developers breaking even with fewer units sold. It's transparently obvious that competition has driven down prices in games thus far. We went down to $1 on mobile then to free, and AAA games have been $60 since 2006, which would be $77.50 inflation adjusted.
Did competition bring down prices on mobile or did developers realize they can make a lot more money by making a game free and having IAP?

Your AAA games example ignores microtransactions, digital distribution (which for some AAA games is almost half of their sales and greatly reduced used games' impact on profit) and season passes leading to some games costing $100. The market is also bigger.
 

Vince-DiCola

Banned
May 22, 2019
284
Culloden
Fair play I guess. Personally I don't care where I buy games from. Microsoft and Sony have bought up exclusives in the past so it was bound to happen on PC one day.
It sucks but that's how it is these days
No sense crying over spilled milk imo
 

Shogun

Member
Oct 27, 2017
1,435
Fair play I guess. Personally I don't care where I buy games from. Microsoft and Sony have bought up exclusives in the past so it was bound to happen on PC one day.
It sucks but that's how it is these days
No sense crying over spilled milk imo

Nahh fuck that and the defeatist attitude. Exercise a bit of self control and don't reward companies for putting the customer in last place. You don't NEED to play the hottest new release, you have been conditioned to buy shit day one, to pre order shit for little to no benefits. The smartest gamer these days is the one who has patience.
 

LewieP

Member
Oct 26, 2017
18,099
It is barebones yes, but some things take time.
Steam was also shit at first you know.
Steam was not shit compared to the competition, who were literally charging you "download insurance" to guarantee that your download would still be available for X number of years.

Digital distribution was in it's infancy, and Valve were at the forefront of making it as good as possible for customers.

This is not at all comparable to Epic Game Store.
 

LewieP

Member
Oct 26, 2017
18,099
The Model T didn't have "air bags" or "a sound system" or "seat belts."

These things take time.

None of those things were industry standards when the model t initially released.

If a new car were to be released today without those and other industry standard features and functionality, people would not buy it.
 

Dr. Ludwig

Member
Oct 31, 2017
2,521
It is barebones yes, but some things take time.
Steam was also shit at first you know.

I've heard that excuse a million times by now and honestly... I don' care. Epic isn't competing with the Steam of 2003 but the Steam of TODAY.

If Epic wants to release that underdeveloped shit platform against far more mature competitors, that's on them. Consumers shouldn't care about how Steam launched more than a goddamned decade ago.
 

Fishsnot

Banned
Oct 27, 2017
1,967
Japan
Yeah I hope he gets paid well, cause I ain't running after him to a store I don't like, for a game called Zombie Army 4.
ceh7X7U.png


how much does it cost to make cart
asking for a friend

Why? Are you going to use it if it's there?
 

banter

Member
Jan 12, 2018
4,127
How long do we think fortnite will be around for....seriously....the MP side of gaming can finally return to normal after "battle royale" finally dies out.
It's already been around significantly longer than I ever expected it to. Then again, I don't think it's fun at all. My nephew on the other hand... he plays it nearly all day every day.
 

Vince-DiCola

Banned
May 22, 2019
284
Culloden
Nahh fuck that and the defeatist attitude. Exercise a bit of self control and don't reward companies for putting the customer in last place. You don't NEED to play the hottest new release, you have been conditioned to buy shit day one, to pre order shit for little to no benefits. The smartest gamer these days is the one who has patience.

Oh I'm not saying I like it. I don't buy the majority of games day one either.
Just that exclusivity while it sucks (big Destiny fan on Xbox so I had the pain of the PS exclusive shit for years) it's how it is these days
 

Deleted member 10551

User requested account closure
Banned
Oct 27, 2017
3,031
Are they really "paying through the nose to build their store" though?
It seems more like they're paying to deny consumer choice than spending it on improving their store to be more competitive with other platforms.

Exclusives are the only path they have. Featurewise , GOG and Steam have the market cornered. There's no way you can make a store better than both of those.