The Epic Games Store has grown its user base by 173% from 2019 to 2024, increasing from 108 million to over 295 million users. However, its revenue from third-party earnings has only increased by 1.6%. The store was launched in 2018 as a competitor to Steam and initially attracted users through a favorable revenue split for developers and exclusive game releases. Epic's strategy of offering free games has led to a perception of the store as primarily a platform for claiming giveaways rather than purchasing games. Critics note that the Epic Games Store has historically provided a less satisfying experience compared to Steam, lacking essential features at launch, with some improvements made only recently. In contrast, the Xbox app emphasizes subscription services through Game Pass, which has seen a 45% year-over-year growth, indicating a more engaged audience willing to spend money. Steam remains the preferred platform for many PC users due to its user-centric approach and comprehensive features. Epic is exploring NFT-based games and AI integration, while its revenue is projected to be over [openai_gpt model="gpt-4o-mini" prompt="Summarize the content and extract only the fact described in the text bellow. The summary shall NOT include a title, introduction and conclusion. Text: In recent discussions, the Epic Games Store has found itself at the center of scrutiny as users analyze its growth trajectory from 2019 to 2024. During this period, the platform has expanded its user base by an impressive 173%, climbing from 108 million users to over 295 million. However, this surge in numbers has not been mirrored in revenue, with third-party earnings only seeing a modest increase of 1.6%. This disparity raises questions about the spending habits of the newly acquired audience, suggesting that while Epic has successfully attracted users, many are not engaging in purchasing games.
The Epic Game Store problem
The Epic Games Store was launched in 2018 as a direct competitor to Steam, the dominant PC storefront developed by Valve. Steam has long been favored by players for its seamless user experience and robust feature set. In its initial attempts to capture market share, Epic offered developers a more favorable revenue split and secured exclusive game releases. However, these strategies did not resonate with gamers, prompting Epic to shift its approach while still maintaining a better revenue share for developers.
To draw users in, Epic has heavily relied on a strategy of offering free games. While this tactic has effectively increased sign-ups, it has also led to a perception of the store as a platform primarily for claiming giveaways, rather than a destination for purchasing games. Many users, including myself, find themselves opening the Epic Games Store solely to claim free titles before promptly closing it.
Critics have pointed out that the Epic Games Store has historically provided a less satisfying experience compared to Steam. The platform launched without several essential features, and although it has made strides to address these gaps, some users feel that the improvements have come too late. Key features such as user reviews, wishlists, achievements, and gifting were added only in recent years, while family sharing and mod support remain absent.
Is this an Xbox PC problem as well?
There are intriguing parallels to be drawn between the Epic Games Store and Xbox PC, both vying for a share of the market dominated by Steam. However, their approaches differ significantly. The Xbox app emphasizes subscription services through Game Pass, which has experienced a remarkable 45% year-over-year growth. This indicates that even with its feature limitations, Xbox has cultivated an engaged audience willing to spend money, contrasting with Epic's model of attracting users primarily through free offerings.
Console players, particularly those on Xbox, demonstrate a strong willingness to invest in games, especially in popular genres like shooters. Despite PlayStation's larger hardware sales, Xbox users consistently show up to purchase titles, reflecting a dedicated gaming community.
In contrast to Epic's strategy, Xbox is investing in a cross-device ecosystem that integrates cloud, console, and PC gaming. This long-term vision aims to blur the lines between console and PC, potentially unifying Xbox and Steam libraries under one umbrella. Such a strategy fosters a more open and flexible gaming environment, appealing to users who seek versatility in their gaming experiences.
The future of PC gaming is Steam for now
For the time being, Steam remains the preferred platform for many PC users, thanks to its user-centric approach and comprehensive feature set. This stability has left little incentive for players to migrate to alternative platforms, leading both Xbox and Epic to carve out their own niches rather than attempting to supplant Steam directly.
Looking ahead, Xbox's next generation of hardware is expected to support multiple storefronts, including Steam and Epic. Meanwhile, Epic is exploring avenues that Steam has yet to embrace, such as NFT-based games and AI integration in development. Tim Sweeney, CEO of Epic, has publicly criticized Steam for its policies regarding AI disclosure, further highlighting the competitive landscape.
What once seemed like a battleground where Epic and Xbox could not coexist now appears to be evolving into a space where collaboration and coexistence are possible. Neither platform needs to eclipse Steam to achieve success; rather, they can thrive alongside it. This reality is reflected in my own usage patterns—I often access the Epic Games Store to claim free games, yet I find myself primarily engaged with my Steam and Xbox libraries. Epic's performance, with over .09 billion in revenue in 2024, demonstrates that it can be a viable player in the market, even if it never reaches the same scale or user goodwill as Steam.
Do you use Epic Games Store and if so, how? Let us know by commenting and taking part in our poll below:
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