Embracer CEO Claims Epic Games Is Good For Competition Against Steam

"It Keeps Them On Their Toes!"

Steam was released over 20 years ago and has been the biggest platform for PC gamers. Though the platform remained the sole provider of PC games for a while, the Epic Games Store has recently begun to gain popularity.

The Epic Games Store launched in 2018 and used incentives like exclusivity deals to establish itself as a massive platform for PC gamers. Epic releases like Fortnite have also been among the most-played titles on PC.

While millions of users prefer Steam, the CEO of Embracer Group has recently claimed that the Epic Games Store is important as a source of competition against Steam.

Why it matters: Many users are not fond of Epic Games Store as it adds to the growing list of launchers and storefronts on PC. The storefront is also known for exclusivity deals, forcing users away from their preferred platforms.

Epic Games Store

During the Embracer Group annual general meeting with investors for the current fiscal year, the CEO of Embracer Group was asked about his opinion on Epic Games’ new program, which is called the Epic First Run program.

Epic Games recently announced this program to attract publishers for more exclusive tiles on the platform. This program allows publishers to retain 100% of the profits for six months in exchange for exclusivity to the Epic Games Store.

However, after six months, the profit is split into 88%/12% revenue. Addressing this program, the CEO of Embracer Group stated:

“I think it’s good for competition with Steam because it keeps them on their toes to deliver the best experience. “

Fortnite resistance cover

He further went on to address platform fees and claimed that they can often surpass the cost of game development.

This makes Epic’s program an enticing offer for publishers looking to release games on PC. Compared to the Epic Games Store, Steam takes 30% of the revenue for each game sold, making it nearly 3x more expensive.

However, this cost comes with the benefit of a much larger use base. Steam reached over 32 million peak concurrent users earlier this year, blazing past its rival PC storefronts.

The CEO also noted that his perspective is different from the consumers, who want to enjoy games on their preferred platforms. Nonetheless, he remains concerned about platform fees moving forward, and the Epic storefront provides an interesting solution to this issue with its First Run program.

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