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Epic Shenanigans

In case you haven’t seen the news, the Epic Store has poached another timed-exclusive game release: Metro Exodus. The wrinkle this time is that rather than being planned from the start, Deep Silver must have been given a fat stack of secret cash because the game was already available on pre-order from Steam (which are still being honored, until removed from the Steam store). And, you know, the game was all set out to be released in 2.5 weeks.

I mentioned “fat stack of secret cash” because while the revenue split is more generous in the Epic Store, they are actually doing the only thing I said would matter in the competition space: Metro Exodus had its MSRP lowered from $60 (on Steam) to $50. Which means the gross revenue from this game would be:

  • Steam = $60 * 0.7 = $42
  • Epic = $50 * 0.88 = $44

That calculation demonstrates how a developer could still make a higher profit on the Epic store by dropping the price to $50, but here’s the thing: they are going to be losing a non-trivial amount of sales for not being on the PC’s largest storefront. Enough to matter? Remains to be seen. The Metro Redux (aka remasters) of the first two games sold 1.5 million copies back in 2016. That would be $3 million more in Deep Silver’s pocket if they sold the same amount of games… at full price… as the remasters of the last two games combined.

That $2 difference between revenue is 4.5%. If Deep Silver sells 4.5% fewer copies due to not being on Steam, then they lose almost $3 million. I mean, without even doing much calculations, you gotta know that for every Steam sale lost, they have to sell 22 copies in the Epic Store to break even. Ergo, I suspect that Epic was waving something more than simply the 88% cut in Deep Silver’s face.

And that’s kinda the baffling thing about all this. I’m not opposed to competition between companies, especially when it results in a gain in consumer surplus. Competing on price is a huge deal, and I’m sincerely amazed that Deep Silver pulled that trigger to sell at $50. But… why then yank the title from Steam as a “timed-exclusive release”? That isn’t consumer friendly or useful to anyone at all. Why not let the same title be purchasable on both platforms, and allow nature to run its course?

We’ll have to see how things shake out a year from now, when the game is finally released on Steam… presumably at a huge discount because it will have been a whole year.