The Epic Games store launched with a major feature that its main competitor, Steam, hasn’t been willing to offer so far -- an 88/12 revenue split model in favor of developers. Epic's CEO this week said that if Steam would adopt the same model and share 88% of game revenues with all developers, it would drop the exclusivity deals it sometimes makes with certain game developers.
Sweeney Takes A Swing At Steam
"If Steam committed to a permanent 88% revenue share for all developers and publishers without major strings attached, Epic would hastily organize a retreat from exclusives (while honoring our partner commitments) and consider putting our own games on Steam," he said via Twitter, adding. "Such a move would be a glorious moment in the history of PC gaming and would have a sweeping impact on other platforms for generations to come. Then stores could go back to just being nice places to buy stuff, rather than the Game Developer IRS."
That no strings attached would mean Valve wouldn't prevent game developers from using other stores or tax them for targeting more than one platform. An open store should simply allow gamers to find the games they like, with no arbitrary restrictions: Games can use any online systems, like friends and accounts, they choose, games are free to interoperate across platforms and stores, the store doesn’t tax revenue on other stores or platforms (e.g. if you play Fortnite on iOS+PC).
More “no major strings attached”: if you play the game on multiple platforms, stuff you’ve bought can be available everywhere; no onerous certification requirements. Essentially, the spirit of an open platform where the store is just a place to find games and pay for stuff."
Epic vs Steam Store Revenue Split Models
The Epic Games store currently takes only 12% of a game's revenues, with the rest going to the developers. In comparison, Steam takes 30%, or two and a half times more, as commission from games making under $10 million. Those who make more than $10 million in sales from a popular game can have that commission reduced to 25%, while those making over $50 million in revenue from their games have to pay 20%, which is still significantly more than Epic’s 12% fee.
Steam’s current tiered revenue split seems to mostly favor larger developers and hurt indie developers, which could help Epic in the long term.
Epic Games’ store is still very much in its infancy, but if it keeps getting more popular with developers due to the low commission rate, it could become a larger threat to Steam. Epic has also promised to launch its store for macOS and Android in the near future