Epic's Bold Move

“The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” – Socrates

Epic Games seems to have taken Socrates' advice to heart, because they’re not fighting the old system—they’re flipping it on its head. In a surprising move, Epic Games has announced a major shift in how they handle royalties for games developed using their Unreal Engine. But there’s a catch: this new royalty structure only applies if the game launches on the Epic Games Store from day one.

According to VentureBeat, Epic Games is reducing its royalty rates for Unreal Engine titles, but only if developers agree to release their games exclusively on the Epic Games Store at launch. This is a huge deal for developers, especially those working on indie titles, as it could mean significant savings in the long run. But is it worth it?

What’s the Deal?

Let’s break it down. Normally, developers using Unreal Engine have to pay a 5% royalty on gross revenue once their game surpasses $1 million in sales. That’s not chump change, especially for smaller studios. But with this new offer, Epic is saying, “Hey, launch your game on our store first, and we’ll cut you a break.”

While Epic hasn’t released the exact numbers on how much they’re reducing the royalty rates, even a small reduction could be a game-changer for developers. Imagine shaving off a percentage point or two from your royalties—that’s money that can go back into development, marketing, or even just keeping the lights on.

What’s the Catch?

Of course, there’s always a catch. In this case, it’s the exclusivity. To qualify for the reduced royalty rates, developers have to commit to launching their game on the Epic Games Store on day one. That means no Steam, no GOG, no itch.io—at least not at first.

For some developers, this might be a tough pill to swallow. Steam, after all, is still the king of PC gaming platforms, and launching on multiple storefronts can help reach a wider audience. But Epic is betting that the reduced royalties will be enough to lure developers to their platform, at least for the initial launch window.

Why the Epic Games Store?

So why is Epic doing this? Well, it’s no secret that the Epic Games Store has been trying to carve out a bigger slice of the PC gaming market. Since its launch, the store has been aggressively pursuing exclusives and offering developers a more favorable revenue split than Steam (12% vs. Steam’s 30%).

By offering reduced royalties for Unreal Engine games, Epic is doubling down on this strategy. They’re not just trying to get more games on their store—they’re trying to make the Epic Games Store the go-to platform for Unreal Engine titles. And honestly, it’s a pretty smart move. If you’re a developer already using Unreal Engine, why wouldn’t you consider launching on Epic’s store if it means saving money?

The Bigger Picture

This move also speaks to the larger battle between Epic and Steam for dominance in the PC gaming space. Steam has been the undisputed leader for years, but Epic has been making some serious waves with its aggressive tactics. From offering free games to users to securing high-profile exclusives, Epic is clearly playing the long game.

And this new royalty structure is just another piece of that puzzle. By incentivizing developers to launch on their store, Epic is hoping to build a stronger catalog of games that will keep players coming back. It’s a bold strategy, but one that could pay off in the long run.

Should Developers Take the Deal?

So, should developers take the deal? Well, it depends. For indie developers or smaller studios, the reduced royalties could be a huge boon. Every dollar counts when you’re working with a limited budget, and launching on the Epic Games Store could provide a much-needed financial cushion.

But for larger studios or developers with established fanbases on other platforms, the decision might not be so clear-cut. Steam’s massive user base is hard to ignore, and launching on multiple platforms can help maximize sales. Ultimately, it’s a decision that each developer will have to weigh carefully.

One thing’s for sure, though: Epic is not messing around. They’re serious about growing their store, and they’re willing to put their money where their mouth is to make it happen.

The Future of PC Gaming?

As Epic continues to shake up the industry with moves like this, it’s clear that the battle for PC gaming supremacy is far from over. Whether or not this new royalty structure will be enough to sway developers remains to be seen, but one thing is certain: Epic is here to stay, and they’re not afraid to disrupt the status quo.

If you’re a developer using Unreal Engine, this is definitely something to keep an eye on. The future of PC gaming might just be shaped by decisions like this one.

So, what do you think? Would you take the deal?