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Can\'t believe I listened to the whole thing. That was awesome =D

Epic Games Store price experiment not as successful as originally thought

at 18:33 - 13th, May 2021
That's a hell of a title for an article but hear me out.

There's a lot to digest here but here are some snippets from an Arstechnica article about the subject.

The Epic Games Store's two-year-plus experiment in reduced platform fees provides plenty of evidence on this score. Just look at any of the dozens of games available on both the EGS (where Epic charges publishers a 12 percent fee) and Steam (where Valve charges a 30 percent standard fee).

In almost every case, those games will be offered at the same base price. Instead of passing on the savings, the publishers just pocket the 18 percentage-point difference between the EGS cut and the Steam cut. The only real exceptions come when a store is having a temporary sale, after which the games revert to identical prevailing pricing standards in almost every case.

One of the original idea behind Epic's lower "commission" fee on games was that the savings would be passed on to customers, but 2 years in and that isn't the case. Sidenote, would this be considered a kind of trickle down economics?

There's a bit on price parity and how Steam's policies are breaking things, but this is standard practice in an open market. I remember when Vikie was working at Expedia it was the same thing. If she found her "clients" were advertising lower prices on any competitors it was a big deal. They had to have the same or better pricing on Expedia for the same amount of time.

The article is an interesting read if you have 10 minutes.


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