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Many of Epic's exclusivity deals were 'not good investments,' says Tim Sweeney

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Draugoth

Gold Member
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However, responding to a question about Epic's free game strategy on a call with press earlier this week, Epic CEO Tim Sweeney said that it's been a "very economical" user acquisition program, with the bonus that the budget goes to game developers—a group it's in a game store's interest to see thrive—rather than toward Facebook or Google ads.

"Giving away free games seems counterintuitive as a strategy, but companies spend money to acquire users into games," said Sweeney. "For about a quarter of the price that it costs to acquire users through Facebook ads or Google Search Ads, we can pay a game developer a lot of money for the right to distribute their game to our users, and we can bring in new users to the Epic Games Store at a very economical rate.

"And you might think that this would hurt the sales prospects of games on the Epic Game Store, but developers who give away free games actually see an upsurge in the sale of their paid games on the store, just because their free game raises awareness. And it's so much that often developers, when they're about to launch a new game, come with us wanting to work closely on a timed release of a free game, just to drive user awareness of their next game. That's been an awesome thing. And it's been by far the most cost effective aspect of the Epic Games Store."

Epic's other big method for attracting new Epic Games Store users has been to strike exclusivity deals with publishers like Ubisoft. It's been an unpopular strategy, and hasn't gone as swimmingly.

"We spent a lot of money on exclusives," said Sweeney. "A few of them worked extremely well. A lot of them were not good investments, but the free games program has been just magical."

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Thick Thighs Save Lives

NeoGAF's Physical Games Advocate Extraordinaire
It's the same stuff I've posted here earlier today. :messenger_grinning_sweat:

 
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