Ubisoft has labelled Steam’s existing business model “unrealistic”.
While theEpic Games store, which launched in December 2018, offers developers an 88 per cent share of the revenue theirPCtitles generate,Steamoffers a less generous 70/30 per cent split.
Chris Early,Ubisoft’s vice president for partnerships and revenue, suggestedValve’s model was outdated during an interview with theNew York Times.
“It’s unrealistic, the current business model that they have,” he said. “It doesn’t reflect where the world is today in terms of game distribution.”
In March, Ubisoft releasedThe Division 2via the Epic Games store and its own digital distribution platform Uplay. The game isn’t available on Steam.
Its more attractive terms have helpedEpicsecure some major PC exclusivesincluding Control, Metro: Exodus,Borderlands 3andShenmue III.
Epic CEOTim Sweeneyrecently defended the company’s strategy of signing PC exclusives for its digital storefront,claiming it’s the only way to challenge Steam.
Fredrik Wester, executive chairman of the board at publisherParadox, said in June thatEpic Games has done “a great job for the whole industry”with the launch of its PC storefront.
“I think the 70/30 revenue split is outrageous,” he said. “I think the platform holders are taking too much money.”
Wester claimed the dominant 70/30 revenue split is an outdated model based on the distribution of movies on boxed VHS tapes. “That was physical. It cost a lot of money. This doesn’t cost anything. So Epic has done a great job for the whole industry, because you get 88%. Fantastic move. Thank you very much.”
Take-TwobossStrauss Zelnicksaid in August he expects increased competition among platform holdersto drive down platform fees.
