this post was submitted on 25 Sep 2023
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They did both things.
Yes, they went after sellers, because they needed something to sell. Nobody's going to go to the new upstart store without some incentive. For sellers, that incentive was piles of money (with the understandable trade off of an exclusivity period - a completely normal thing for businesses to do).
But they also went after buyers by handing out hundreds of free games to build up everyone's libraries (something they're obviously still doing), and by running the best sales seen on a PC store since Valve stopped doing flash deals during their sales.
But nothing they do is going to achieve your statement of "you could run a slightly less feature-rich store, take less of a cut, and pass the reduction fully on to consumers and you'd be an easy choice for many gamers." They actually tried that at the start, with Metro [Whatever - I don't play the Metro series so I can never keep the titles straight] launching at a reduced price point because of the lowered cut, but everyone just focused on "ZOMG, I HAVE TO CLICK A DIFFERENT ICON TO LAUNCH IT?!?!11". Aside from that example, though, the pricing of the games isn't up to them. Blame the publishers for prices staying the same while they pocket the extra from the lowered store cut - they could easily pass it along to consumers, but they choose not to. Epic themselves did what they could with the coupons during sales (leading to devs/pubs like CDPR maliciously increasing the prices of their games to disqualify them from it just to spite Epic and their potential buyers) and now the not-nearly-as-good-a-deal cash back program they're doing.
The bulk of gamers simply don't want to buy from anything other than Steam, and nothing anyone says or does will budge them from that. Every argument against EGS existing is just a rationalization of that stance. I've literally seen people say "I want every game on every store and then I'll buy it from Steam."
While I can understand the difficulty of trying to come up with competition to a pre-existing and dominant storefront, they went about it almost entirely the wrong way. They underestimated consumers' aversion to change and overestimated the value their own launcher provided.
Everybody and their mother used Steam at the time, and it provided a whole lot more than just a storefront and icons to click. When Epic launched EGS, it offered absolutely none of that. Without any social aspects or significant consumer buy-in to their ecosystem, it had no staying power. People—myself included—would go to it to play a shiny new free game until it stopped being fun, then fuck right off back to Steam to play our other games with friends. If they had spent more time cooking up the EGS ecosystem into something more similar to XBL or PSN before trying to attract consumers en masse, they likely would've been pretty successful. They could've even just decided to partner up with (or buy) NexusMods and integrated a mod manager, and a lot of us would've had a good reason to prefer EGS over Steam for some games.
Instead of doing something to make their ecosystem more appealing, though, they used paid-for exclusives to make other ecosystems less appealing. It was an obvious attempt to herd consumers into their ecosystem, and it backfired spectacularly. Before that, most people were either indifferent or liked them as a company due to their legacy and/or Unreal Engine. These days, I see a lot of bitching about "timed exclusives".
It wasn't really even exclusives technically. It was explicitly Excluding-Steam exclusives. It released everywhere else but not on Steam. And it was further aggravated by games that were already on Steam being taken off in favor of launching elsewhere.