Better Revenue Share by Epic Games and Discord

Better revenue share than Steam means more opportunities for outside collaboration.

Epic Games Store Revenue Split Graph
Revenue share for Epic Games Store

The Epic Games Store has recently launched. It has launched with some amazing features aimed at developers. Its revenue share is set at a very low 12%. The most arguably popular PC game store Steam currently takes 30%. Epic Games has also committed to covering the 5% engine royalty fee if a developer uses the Unreal Engine in their game.

The Epic Games Store also promises that it will attempt to connect players directly with developers. It also wants to connect developers with content creators and influencers something Steam does not do. Overall the aim is to place more control of the game in the hands of the creators.

At the same time Discord has recently announced that their store will offer a 90/10 revenue split with developers. With over 200 million users Discord is definitely poised to poach some Steam players. Developers and publishers should be excited that their game could launch with an already established Discord community.

Discord plans to be more than just a voice chat service

The fact of the matter is that developers and publishers will now have access to more funds than before if they choose newer store options. This will make the gaming business even more attractive to potential investors. But should it really be ALL about just profits?  

Don’t neglect the basics.

We would make the argument that an extra 18% in revenue share should be used in other areas of game development that typically take a back seat. For instance, marketing and public relations are an often neglected part of the development life cycle. We seldom see them included in the studio budget. The same could also be said about game studios’ treatment of social media.

Don’t be this guy

Unfortunately some publishers and developers are of the opinion that they can save some cash and do all the marketing, PR, and social media by themselves. We think this is a foolish approach to creating and launching any video game. Creating a great game means nothing if the subsequent launch is handled poorly.

We believe that with the launch of the Epic Games Store the game development and publishing ecosystem could be improved massively. It opens up opportunities for more temporary revenue sharing and collaboration. For example signing a one or two year revenue sharing contract with an award-winning PR and marketing agency for less money upfront.

Tencent and Netease Stocks Recovering Slightly, But Still Have a Long Way to Go

Recently, Tencent and Netease have made some stock price gains after losses that they incurred after announcements by the Chinese government to limit the distribution of video game licenses in an effort to curb the time China’s youth spends playing video games. China is the worlds largest gaming market, boasting 619.5 million players in China that are projected to spend $37.9 billion in 2018 alone. 

Tencent’s stock took a mighty big dip to reach their lowest levels, at $39.28 a share, seen this past year after the announcement came in late August 2018. However, the technological giant’s stock price had been dipping slightly even before that, no doubt in response to the swirling rumors of the Chinese government decision.

Tencent Stock
Tencent Stock Price – 1 Year

Netease, a Chinese Internet technology company that also publishes games, saw its stock price take a massive tumble as well. It reached a year-low $188.39 just days after the announcement. However, their stock recovery will certainly be helped by their recent shift towards e-commerce, which was detailed earlier this year.

Netease Stock Price – 1 year

The Chinese Government’s decision might be good news for both companies and consumers. The limiting of game licenses in China has the potential to make the video game market swing in one of two directions: Better games with more in-game purchase opportunities or the same games with more in-game purchase opportunities. We might even see a switch to a predominantly free-to-play model (with in-game purchases) so that updates to the game can increase revenue without having to request another license for another game!

We really hope that Chinese developers and publishers feel the need to develop and publish even better games that can maintain a player base for a long time in a limited gaming market. And that Chinese consumers push these developers and publishers to create the high quality gaming products that they are very much capable of.

The Right Way to Respond To Criticism

Coming under fire is hard as a developer, after all, you’ve just poured years of your life into a project and now it’s out in the ether, your getting negative feedback from players. Part of the human condition is the tendency to only focus on the negative feedback. Ask any YouTuber and they will tell you that you can have one hundred positive comments and three negative ones, and you will only read and remember those three negative ones. Read more