Can the Epic Games Store turn things around? ‘I don’t see how they can recover at this point,’ says Newzoo analyst

In February, Epic Games unveiled its ambitious plans to revamp the Epic launcher, with a June update promising an impressive five-fold increase in startup speed on average. This technical enhancement is set to be complemented by significant changes to the storefront, including personalized game recommendations, streamlined access to categories, and readily available patch notes directly on the shop interface. While these features would have been welcomed at the launch of the Epic launcher in late 2018, the question remains: is it too late for a turnaround?

Market Insights

Emmanuel Rosier, director of market intelligence at Newzoo, expressed skepticism regarding Epic’s ability to reclaim its position in the market. “I don’t really see how they can turn that around,” he remarked, noting the dominance of Steam. “The Epic Games Store attracts players primarily through free games, but many simply log in to collect them without actually engaging with the titles.” This phenomenon has led to a situation where players accumulate games without playing them, reminiscent of a digital trophy case rather than an active gaming library.

Rosier elaborated on the challenges facing Epic, suggesting that the company has spread itself too thin by attempting to compete across multiple fronts—against Steam, Apple, and Google Play. “They probably ran out of steam trying to fight all these battles simultaneously,” he noted.

However, Rosier’s outlook shifts positively when discussing Epic as a game developer rather than a storefront. “They probably need to focus on what really matters,” he stated, highlighting the significant attention Epic has been directing toward Fortnite. “When you look at the state of Fortnite today compared to six months or a year ago, it’s clear they are making strides.”

Fortnite’s Evolution

One notable evolution in Fortnite is the increased integration of cosmetics inspired by other video games. Historically, Epic has featured its own titles and exclusive launches like Borderlands 3, but the current season showcases characters from iconic franchises such as Sonic the Hedgehog, Pac-Man, Crash Bandicoot, Mega Man, and even Sora from Kingdom Hearts and Joker from Persona 5. “I think that’s an important trend I see with Fortnite,” Rosier observed, “they are not afraid of other games.” This approach may signal a shift towards more platformer mascots rather than celebrity endorsements.

Rosier mused on the implications of this trend, suggesting that Fortnite has become a unique marketing platform for game launches. “It’s almost surprising that GTA 6 isn’t planning an event in Fortnite to unveil the trailer,” he remarked, highlighting the platform’s potential as a promotional tool.

Additionally, recent features in Fortnite, such as collectible “sprites,” have introduced new gameplay elements that encourage players to focus on collection rather than competition. “It’s not about winning that much; it’s about completing your collection of sprites,” Rosier explained. Despite these innovations, he remains cautious about Epic’s prospects as a competitor to Steam. “If you look at the Epic Games Store, I don’t see how they can recover at this point,” he concluded.

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Can the Epic Games Store turn things around? 'I don't see how they can recover at this point,' says Newzoo analyst