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Should PC Games Cost Less in the Epic Games Store?

  Should PC games cost less in the Epics Games Store?

Aurich / Various Games

The news of yesterday that Metro Exodus switched from Deep Silver of Steam to the Games Store of Epic was remarkable about the position of Valve, which is the dominant online store site from PC Gaming. For consumers, however, it may have been more notable for their impact on the pricing of the game.

If you pre-ordered Metro Exodus before 1

945, you paid $ 60 (and still receive this pre-order on Steam). If you book the game today at the Epic Games Store or buy it there after it's launch on February 15, you'll pay only $ 50.

And despite this price reduction, Deep Silver will actually be more money per sale from the Epic Games Store than on Steam. Epic's 88 percent revenue share on a $ 50 ($ 44) sale is more lucrative than the 70 percent revenue share Valve offers on a $ 60 sale ($ 42) However, after $ 10 million in revenue) The savings on

Somewhat more surprising is the fact that Metro Exodus is the first game that effectively passes on the savings of Epic's cheap revenue streams to the consumer. The remainder of the limited selection of games available in both the Epic Games Store and Steam will have the same price for the developer set on both platforms (except those that Epic temporarily offers in rotation mode for free). [19659004] In the world of traditional consumer goods, pricing often does not work that way. There, retailers usually pay a standard wholesale price to the manufacturer, which is then topped up to cover their costs. A smaller retailer markup means that the store can offer lower prices to attract more customers (yes, there are often confusing factors that affect bulk orders and the introduction of EIA, but let me spoil you) Sales. For example, suppose a publisher wanted to make $ 10 "wholesale" every time he sold a copy of his game, regardless of the online shop's façade. Considering retail markup, this game would ultimately cost $ 11.36 for the Epic Games Store and $ 14.28 for Steam. In the Discord Store, which offers publishers 90 percent of all sales, the game would cost only $ 11.11. If you buy directly from the publisher's website, players can only pay $ 10.

Prove Your Value

These lower prices are of course not enough to convince players of the more expensive Steam version. Many players have their game libraries and buddy lists centralized in one place. The Steam app also offers features that have not yet been achieved by all other game starters, from simple screenshots to robust forum communities to an integrated music player.

Valve argued in November that "the value of a great value" is a network like Steam offers many benefits that are shared and shared by all participants. "The company talked about recruiting developers for the platform, but the same could be said from the perspective of the player.

If these network effects and exclusive features are really important to Steam users, they'll be willing to pay the extra If not, other stores should be willing and able to cut Steam's costs to attract new customers, and in any case, retailers would have to earn their markup value over other options.

Trying out for Size

Game manufacturers of course charge what the market for their games is, and it's hard to pin down publishers in the Epic Games Store for trying to keep price levels and Epic's added revenue share to involve.

At the same time, I can not help but wonder if publishers could not benefit from cutting costs to meet their increased savings. Evidence from Valve's annual sales shows that eliminating a game award can even have a minor impact on sales volumes, more than offsetting the lower sales margin.

Deep Silver obviously sees the value in trying out a new pricing scheme in Epic's new world at a lower premium. On the other hand, Deep Silver has the advantage of being one of the selected games sold exclusively at the Epic Games Store. Epic's Tim Sweeney told Ars last month that the company "sometimes sponsors developers to release games exclusively through the store." Neither Epic nor Deep Silver would comment on whether such a deal came about for Metro Exodus but we can only assume that the publisher has some of Epic's financial cushion behind his new price experiment. Regardless, we can only hope that other publishers will try to lower prices in proportion to the lower costs associated with new digital storefronts. This is a step that could benefit both game makers and gamers and the online gaming ecosystem.

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