CEO Embracer Group Lars Wingefors, answering various questions during the annual general meeting, commented new program Epic First Run and the current situation with commissions on gaming platforms.
First, let’s remember that Epic First Run is a new exclusivity scheme that will allow developers to receive 100% of the revenue when they agree to make their games exclusive to the Epic Games Store for six months. After this, the revenue distribution will return to the standard: 88% for developers and 12% for Epic Games.
According to Wingefors, Epic First Run should help compete with Steam. And this is good, because in the end everything comes down to offering the most favorable conditions. Let us remember that until 2018, Steam traditionally received 30% of game sales. After that in Valve introduced a system of levels that allow developers to earn more money when certain conditions are met: a division of 75%/25% for income exceeding 10 million, and 80%/20% for income exceeding 50 million.
Wingefors said Embracer has to spend more money on commissions on platforms than on developing video games. He called these numbers crazy and admitted that in the first case, the conglomerate would naturally want to pay less.
The head of Embrace also noted that for the consumer the situation with platforms may look different. Many people, as expected, want to be able to choose the platform for the game and do not think about any behind-the-scenes issues.
In the past, Embrace has repeatedly preferred the more favorable EGS commission. One of the first major exclusives was Metro: Exodus, and the current one is Dead Island 2.
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