Epic Games Introduces First Run Program for Exclusive Titles
Epic Games has unveiled its new First Run program, offering developers the opportunity to publish their titles exclusively on the Epic Games Store. Under this program, developers will retain 100% of the net revenue from their titles for the first six months. After the initial period, the revenue split will revert to Epic’s standard structure, with developers keeping 88% and Epic Games taking a 12% commission.
Games published through the First Run program will receive special treatment on the store, including exclusive badging, homepage placements, and dedicated collections. These games will also be featured in relevant store campaigns, such as sales, events, and editorials, ensuring continuous exposure throughout their first run.
Epic Games asserts that the First Run program will help developers of all sizes reach global audiences from the moment of launch. However, developers are encouraged to promote their products directly to their target audience for optimal results.
Implications for the Mobile App Store Ecosystem
While this move may be viewed skeptically from a business standpoint, it is worth considering the growing popularity of alternative app stores in recent years. Developers have been exploring these alternatives to avoid the commission fees charged by Apple and Google. Epic Games itself became embroiled in a legal battle with Apple after attempting to circumvent these fees by offering in-game currency at a discounted price on its own platform.
The absence of a commission fee for the first six months in the First Run program may delay the app stores’ revenue earnings. However, it is expected that developers will invest more effort into marketing their products on these platforms, potentially leading to significant returns once the exclusive period concludes.
It is inevitable that one of the alternative app stores will eventually adopt a similar approach, forcing developers and publishers to choose between established routes to success with existing audiences or exclusive deals with alternative app stores for potentially higher profits. It’s a choice between a guaranteed 80% of revenue or the risk of earning nothing if things don’t go as planned.
Furthermore, alternative app stores implementing this strategy will likely compete fiercely to secure successful games, giving them a distinct advantage over their rivals. In light of Epic’s move, other app stores should take note and act swiftly to gain an edge in the market.
Potential Disruption and Competition in the Mobile App Store Landscape
This development may trigger a significant upheaval in the duopoly of Google and Apple over the app store ecosystem. As more developers seek to retain a larger share of their profits, a mobile app store adopting a 100%-of-profit deal could make a substantial impact and disrupt the dominance of the established players.
Industry experts anticipate a highly competitive environment for exclusive deals and speculate about beloved titles switching stores to maximize their earnings.
Last month, Meta introduced its own mobile app store, further intensifying the competition in the market.