Epic Games CEO Tim Sweeney recently addressed the company’s strategies and admitted that while giving away free games was a successful business tactic, many of the store’s exclusive deals had not produced the desired returns.
During a press conference, Sweeney spoke openly about the Epic Games Store’s methods of attracting users, admitting that some of the exclusive deals worked exceptionally well, but many others turned out to be poor investments.
In contrast, Sweeney praised the free games program, calling it “magical” and “highly economical,” despite initial concerns that offering games for free might seem counterproductive. He explained that while it may seem counterintuitive, companies usually invest heavily in attracting users to their games. By offering free games, Epic Games can achieve this at a fraction of the cost of traditional methods like Facebook or Google advertising.
Sweeney pointed out that for about a quarter of the price it would pay to acquire users through traditional advertising, Epic Games could pay developers the rights to distribute their games for free, thus attracting new users to the Epic Games Store at very little cost.
He also mentioned that, contrary to expectations, offering games for free does not affect their sales potential. In fact, developers often see an increase in sales of their paid games on the store after giving away a free title, as it significantly increases visibility and awareness.
Sweeney stressed that this approach has become so effective that developers often approach Epic Games before launching a new title. They are eager to collaborate on a limited-time free release to generate interest and awareness for their upcoming games. He stressed that this strategy has proven to be the most cost-effective aspect of running the Epic Games Store.
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