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Epic Games Admits In Court That Its PC Store Still Isn't Profitable (kotaku.com)

submitted 1 year ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 1 year ago (1 children)

I’d argue that the statement that Epic is just as much a customer as the consumer isn’t really true. Epic as a storefront is different from Gamestop as a store front. Gamestop buys the product at a given price and then marks it up to make profit, Epic provides fulfillment and gets paid a percentage of the sale. Epic isn’t a customer in that sense because they aren’t buying and reselling the product.

No, you misunderstand what I mean. I'm saying the DEVELOPER of the GAMES is a customer of Epic, what's Epic selling? Store space in exchange for a cut of the profits. There is no reason for a customer to want to help out a business, they don't have a stake in the company.

If McDonalds is having a hard time, I don't pay them double for cheeseburgers to "help em out", I say "Sucks to be you, but hey we still have a Wendy's."

Sure, but the idea of fostering a mutually beneficial preferential relationship between two companies is far from new. I’m not saying that the developer has to take a loss, but they could decrease the sell price on Epic while still making more money than on Steam, GOG, or Humble Bundle. If doing so causes more people to switch to Epic it also means they’ll make more money in the long term and in the short term.

Except they're still making money selling on Steam, GOG, and Humble Bundle.... There's really nothing in it for them if Epic succeeds and nothing of value lost if Epic shrivels up and dies.

[–] [email protected] 0 points 1 year ago

No, you misunderstand what I mean.

Ah I see, you're correct, I did misunderstand you. I think your point is true, but still lacks finesse in describing the relationship between developers and digital store fronts. I also think you're disregarding the benefit that the additional 18% cut the developer gets to keep as well as creating partnership options rather than being stuck with a defacto monopoly.

I also don't think it's fair to compare GOG or Humble Bundle with Epic or Steam, their purposes and market share is so much smaller than Steam. Epic isn't trying to compete with GOG or Humble.

Also, you're correct that the developer is making money either way, but they are making a larger percentage on sales through Epic. You're probably right that the developers aren't taking that into account, but they are materially benefited by its success. If they fail to account for that benefit and Epic fails then it will mean they make less money overall.

I think instead of your McDonalds example a better one would be contractors for a large business. Maybe your business frequently uses an electrical contractor and due to special circumstances the field is exceptionally limited (specialty license or security clearance). There is one contractor available and they have a monopoly and can charge whatever they want. So far this company has been really fair and not abused their power, but a new contractor becomes available. The new contractor has an inferior service line and is a bit slower, but they're also cheaper. You could just ignore the new contractor and what happens happens, but in the real world it's fairly common for businesses to diversify service contracts to maintain a pool of available contractors.