Thursday, June 4th 2020
Epic Games CEO Tim Sweeney Claims Free Game Giveaways Increase Sales On Other Platforms
In a recent interview with GameSpot, Epic Games CEO Tim Sweeney claimed that the free game giveaways run on the Epic Games Store such as Sid Meier's Civilization VI and Grand Theft Auto V can lead to increased sales of the games on other platforms. Tim Sweeney believes that because many of the games given away may not have been considered by most players leading to increased sales on alternate platforms according to some developers.
Tim Sweeney said, "You're not going to go out and buy—If you're not into games like Satisfactory, you're not going to go out and spend money to buy Satisfactory. But if you get it for free you realize it's an awesome game. People have discovered a lot of great games that way."
Source:
KitGuru
Tim Sweeney said, "You're not going to go out and buy—If you're not into games like Satisfactory, you're not going to go out and spend money to buy Satisfactory. But if you get it for free you realize it's an awesome game. People have discovered a lot of great games that way."
28 Comments on Epic Games CEO Tim Sweeney Claims Free Game Giveaways Increase Sales On Other Platforms
Its like he received his annual report and looked at the numbers and was struggling to give it a great spin. After a few bottles of wine this is what he came up with.
The more important part of this idea though is the proven business of introducing people to something new to create new demand. This is also how all those vanilla games work that you get for free. They trigger you to buy all those DLC. Giveaways always seem to happen days before a new content release, same as major discounts. It also generates free publicity, the giveaway might therefore actually be cost neutral compared to marketing something again. On top of that, there is the scratch your back principle at work between Epic and devs/pubs.
I still vaguely remember some Steam Vigilantes yelling about how evil the world was outside of Gabe's wonder box. A question to them: do you feel stupid yet? Or has the penny dropped by now. Oh no, wait, there is one bastion left. Evil Tencent and China :)
twinfinite.net/2020/01/most-played-games-in-2020-ranked-by-peak-concurrent-players/10/
There is no sign of it stopping. By comparison, the last long-lasting superhit was World of Warcraft and it took more than a decade for player count to go down. The numbers were similar, crossing 10 million and still growing. The games share many similarities, too: loot chase (skins), peer pressure environment, social interaction, competitiveness, and essential for this day and age: low barrier of entry.
Alongside that longlasting success they are now creating new revenue and thus profit through EGS, that is separate from Fortnite. If anything their money mountain is growing or at least, the company is much more viable. They have a super successful franchise, they have an industry-wide game engine deployed and in active development, supported by successful business model; they have tons of IP, and they have talented devs. They're fast becoming a Super-Valve, and they are positioned in almost exclusively growth market segments.
Gabe on the other hand is holding on to success of the last decade, and has one trump card at the moment called Alyx, which caters to a niche segment of the market that has trouble gaining traction. Its a high risk endeavour at best. The rest is all old news.
EGS is doing all bad business practices by making Exclusivity by paying the Developer studios, if they had confidence in their own quality of their store, they wouldn't do that. The reason freebies is fortnite money and Tecent expansion into US, not some fictional evil lord. And all of it is bad for the consumers/gamers.
"The games share many similarities, too: loot chase (skins), peer pressure environment, social interaction, competitiveness, and essential for this day and age: low barrier of entry."
Um no. WoW was expensive AF to get into and had a monthly sub. For years you had to buy the base game and all the expansions. You were looking at $180 upfront during WoTLK to get started. Skins and loot are nothing alike. One is cosmetic, the other provides material benefit. Both provide an endgame, something for you to go after but they are polar opposites. Saying they are similar is a completely inaccurate statement.
"Gabe on the other hand is holding on to success of the last decade"
Except they have been releasing great products like the Valve Index and just completely redesigned steams interface, which is fantastic. They also don't monopolize games by paying devs off and they actually encourage competition by allowing game devs to sell their games on 3rd party stories with zero steam fees while that's keys are still activatable on steam.
You are an EPIC home and that shows. That's fine but don't go wading into comparisons you know nothing about. You say that as if you've already dismissed dozens of other view points. I'm sure at some point someone's pointed out that removing choice and competition from the market is bad but I'm guessing you'll dismiss that as part of whatever you arbitrarily define as "sensible". When your viewpoint of other's opinions is so warped as to declare all other's as not even a base line of sensible, you are clearly looking to only get your opinion across, not to actually converse.
Did you miss out on the digital revenue income stream lately?
www.statista.com/topics/3436/gaming-monetization/
Have fun. The numbers don't lie. Fortnite doesn't play the same role as WoW? Players are not bound to it like they are to a subbed game? How does that work when 75% of players spend money in it?
And there you go... choice, competition. You have every choice to pick whatever store you want for your purchase. But like always, not every store has access to every bit of content. No different from any other marketplace. Get used to it. Or don't, lol, I could care less. Denial of reality doesn't serve you.
I get it you desperately want to continue the Steam Crusade, but you can safely do that on your own. I'm past it, as I was since day one.
Steam seems to get a free pass on those, which I assume is because Valve is not "bribing" the game developer/publisher. Well, I'm not sure "bribe" is the best word here since it implies
illegality. There is nothing illegal here, it is a standard business transaction between two entities: Epic proposes an offer to a developer/publisher who can choose to accept or reject it. Epic is scrutinized for making such offers, yet developers/publishers seem to be absolved of any wrongdoing. Again, this seems like a double standard to me. And to make things clear: I think neither side should take any blame or feel any guilt. Both entities do what they believe is best for them.
Epic is adopting the strategy that they believe would be most effective at building them a customer base, which in turn would allow them to grow faster as a store, which would be good, as it would provide better competition to Steam, and competition is always good for the end user. We don't monopolies, right? Or should we ignore our principles a bit in some cases when we actually like the person/company/monopoly?
Whereas in the situations with Epic, Epic deliberately pays these entities to NOT sell the game elsewhere. That's why Epic receives so much criticism for it as no other 3rd party storefront that I've seen has done that.
Like you said at the beginning of your post, and I agree with you there, games should be available everywhere. CD Projekt Red has set a good example with that.
I'm sure adding support to more currencies and improving security would benefit them a lot. And if they really have that much money, in my opinion, they can use that money to pay those developers or publishers not to release their games as exclusives to their store and "encourage" those developers/publishers to remove their games from other stores, but to compensate the developers/publishers for making the price lower if not the lowest in EGS. Paired that with top notch security and support to more if not all currencies and we pretty much have the actual competitor to Steam and other stores, including third-party game key stores such as Humble or Fanatical, even if they still don't have shopping cart.
My reason for not having an account the client or any of the games is much more simple than some tribal need to dispute their merits.
I just didn’t want more shit installed or another account to deal With or more client configurations.
Additionally nothing they “exclusively hosted” was worth it enough to get invested even at the price of free. of course that’s just personal preference.
* And that's your right to feel that way - not all of us are okay with Tim Sweeney's statements about how gamers won't get a say in the platform / storefront war, or the way they handle exclusives. It sounds like it's not a big deal to you, and I'm sure you're not alone, but to some of us, it rubs us the wrong way and as a result I know I won't ever do business there. I know I like GOG and to a slightly lesser degree, Steam. GOG has very pro consumer policies - no drm, and an exceptional return policy. Steam has a storefront with fantastic features that in some cases you can't get at other storefronts, you can tell they invest in their platform on behalf of their customers. Epic is very much the opposite - has a bare bones store with a number of items that concern me, and in response to their exclusives and Tim Sweeney's comments, I'll never buy anything there.
* Sort of. I think it comes down to the relationship individual consumers have with a given storefront. If they are already using a given storefront and like it, and a new game is released only on that storefront, that individual in all likelihood isn't going to notice or care that it's exclusive because it's on their preferred storefront anyway. But if a different user doesn't use that storefront, they may be less likely to want to use it for a new game and not like the feeling of being forced to use it.
* I do think devs and publishers get blamed - in fact I know they do because not only do I blame them, but I see others on other messageboards blame them as well. It's a situation where "it takes two to tango" - Epic approaches the devs / pubs with these exclusivity offers and then they have to accept it. I certainly keep in the back of my mind which developers take those deals and will act accordingly with their subsequent game releases in the future, so in my case, I don't only blame Epic. But Epic definitely is the bigger problem in my viewpoint as they are initiating the exclusives and Tim Sweeney has even made public comments about how they'll keep pursuing the exclusives. I'll never forget what the DARQ developer experienced, I think that showed Epic's true colors pretty clearly.
I would be dancing on my coffee table if Valve, Epic Games, and CD Projekt Red were heavily competing with each other. As everybody knows, competition is really beneficial for the end user. I'm not sure what you mean, but of course we have no say how Epic handles exclusives. We can express our opinions and ultimately vote with our wallets, but it would incredibly foolish and naive to expect that Tim Sweeny would just like that make decisions based on our wishes. It is his company, not ours. For example, I wish Valve would not reject some erotic/pornographic games, but allow others. I don't care about such games myself, but it seems a bit doublestandard-ish. But at the end of the day, it's not my company, so I don't get a say.
I agree about GOG and Steam. I disagree about the Epic Game Store. Yes, it is missing features, but they are working on them. Calling it the opposite is quite a claim. You cannot expect all of those to be added overnight. I think they are doing a decent job at implementing features. Steam was also bare bones initially, it took quite a while for it to become the feature-rich platform we see today. People seem to forget that.
Also, some of Epic's policies are actually good. Automatically refunding money to users who had purchased a game at a higher price shortly before it went on a sale. Or retroactively refunding the difference to developers after they reduced their cut.
People seem to either forget these things as well, or are conveniently omitting them. That is true, but it goes both ways. If a user just so happens to use only Epic, and there is game he/she wants to play that is available only on Steam, that user would feel forced to use Steam. Granted, this is very unlikely due to games available on Steam and the Epic Game store, but the principle stands.
And is this it? Is this your argument? That users are would need to install another launcher? Sure, technically, it is an inconvenience, but is it really that much of a hurdle to overcome? Just installing another program on your computer? Is this this the best argument you can come up with? Yes, it does indeed "take two to tango". Like I said, I don't think the developers/publishers should be blamed either, but I guess it's nice to see some consistency. Still, I do not remember seeing anyone put the blame on the developers/publishers, I see Epic being the one taking all of the blame, but I could be wrong on that.
Regarding DARQ's developer, my opinion will be quite unpopular. I think he behaved abhorrently. Let me explain.
Epic approached him with an offer. He refused. Good for him. It should have ended there. What he did afterwards was simultaneously brilliant and devious. He offered to donate 100% of his revenue from the Epic store to charity, provided Epic agrees to a non-exclusivity deal.
It was brilliant because either way Tim Sweeny kind of loses: if he rejected the counter offer, he would look like a greedy asshole who hates charities; if he accepted it, he would be basically setting a precedent for the future.
It was devious because DARQ's developer was well aware that many people disliked Epic, so even if Tim Sweeny accepted the counter offer, virtually nobody would have purchased the game on the Epic store if it was also available on Steam and GOG, either because users are much more likely to already have an account for the two aforementioned stores, or because "Epic bad". This provided him with a lot of positive press, made him look like a saint, he made even more money, and nothing went to charity.
You can call me cynical, but that's how I saw it. Using the idea of charities to make money like that is despicable in my book.
I think Tim Sweeny should have made a counter-counter-offer to donate Epic's entire cut (or double) to the same charity if DARQ's developer would accept the exclusivity offer. Fight fire with fire.
The interesting part is, however, that after everything you have said, I still did not see any practical arguments as to why store-exclusive games are bad for gamers. All I saw were moral/ethical arguments and personal preferences.
As you should already know, morals and ethics take a back seat in the business world. Not just in gaming, but everywhere.
Personal preferences are just that... personal. You have every right to have your feelings and opinions, and you also have every right to make decisions for yourself based on said feelings and opinions, but they are not the same as logical arguments or empirical evidence.
The thing with Epic missing features is this - they have no problem getting out their wallet to lock down exclusives...but the storefront is still a pile of crap. They could EASILY hire a massive number of developers to match Steam in under 12 months in terms of features with their wallet and Tencent backing them, but they don't...yet they keep up the exclusives. There's been reports about crunch for their developers, and quite simply, minimal progress with the store ever since they came out with their roadmap last year (which they have since scrapped because it had become a hilarious meme all over the internet making fun of them missing basically every milestone). I agree with you, those are good features. * Lacking a customer review system
* Lacking message boards
* The aforementioned exclusivity with games like Shenmue 3 pulling the rug out from under backers, and removing freedom of choice from gamers in that respect.
* Additional fees with certain payment options (Games/comments/af9gtz)
* Epic is over 40% owned by Tencent - and while I am not saying China makes the calls with Epic, that's a TON of stake for a Chinese company to own in Epic which makes me seriously uncomfortable with the idea of ever doing business with them.
* No investment in Linux or MAC - not saying it's a lot of users, but to storefronts like Steam's credit, they do put forth some effort in that department where Epic does not.
* Tim Sweeney (here are some quotes from him over time, a number of them quite hypocritical that make me never want to support his gaming storefront - steamuserimages-a.akamaihd.net/ugc/782978066674182923/8D5D7EBC0EED03D1A21961517D29B44291863594/ - I don't like the idea of supporting a guy like this.
* Lack of community tie-ins (this goes somewhat hand-in-hand with the reviews / messageboards entries above, but more specifically things like Achievements that many folks like, the ability to build your own profile as again, some (not all) gamers are into those types of community building amongst their friends that they play co-op / multiplayer games with, and the like. I use some of the features myself.
These are just some of the items that stand out to me - I know there are plenty more, and there are even charts out on the web comparing the various storefronts and Epic is way at the back in those comparisons. This is why exclusives are bad - if you're going to lock a game down to your storefront, make sure your store is actually good if you want people to stick around and have incentive to do business there. Epic's just gone about this in a very poor manner. Epic definitely takes the majority, but I'd recommend checking some messageboards. I've seen many folks over the the last year reference specific devs, but more often publishers that they don't intend to buy from in the future (Take Two is a big one, along with Coch Media & Deep Silver), and devs like Glumberland that got nuked on the Steam messageboards, I can't remember the dev name, but the one that did Metro Exodus - I mean they got friggin' destroyed on Reddit to the point that youtubers and gaming journalist sites started covering the blowback. The devs definitely receive criticism, especially in the instances where they pull the rug out from under Kickstarter backers on games like the aforementioned Shenmue 3, and Phoenix Point. Ya I definitely disagree with your view on the DARQ dev. Here's his side of it with screenshots of some of the e-mail exchanges - medium.com/@info_68117/why-i-turned-down-exclusivity-deal-from-the-epic-store-developer-of-darq-7ee834ed0ac7
Epic comes off looking absolutely awful here, to me. Even in your version, I think Epic comes off looking like the bad guy - as you said in the scenario you described, there were better options from Epic's angle. Just awful. You should probably take another look. I've explained pretty clearly the differences (and there are more even than I've provided here, I've simply focused on those most important to me) between some of the storefronts and where Epic lacks pretty significantly in a number of areas. The behavior of Epic particularly in the realm of the kickstarter situations where they've literally pulled games away right before launch that were promised releases to backers on a different storefront are particularly shameful. You may simply be in a group of folks who don't mind installing 18 different launchers, or using vastly inferior storefronts that lack features, but not all of us like that, especially from a store that treats people the way Epic has in some the instances I've described here, which is why exclusives, particularly to such a subpar storefront are bad. I am greatly in favor of choice. I like when games are released at all storefronts, including Epic so people can buy the game where they want. CD Projekt Red sets a great example with that.