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Gearbox CEO Randy Pitchford says his hopes on Epic Store were 'overly optimistic or misplaced'
(www.tweaktown.com)
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It burned money on exclusives. The free games are a much cheaper marketing tool than advertising.
They burn a ton of money on free games too. They're only free to us. Epic pays for them at wholesale rates.
Yes, and at wholesale rates it's a pretty good bang-for-your-buck, as an advertising scheme. Advertising is a numbers game about getting as many eyeballs as possible on the product, and I know I actively check for free games on the Epic launcher most weeks. Even if I don't ever buy anything because of that specifically, it keeps the app on my computer and keeps me checking back in.
Edit: And I shit you not I just opened it to check 'cause I can't remember if I looked at this week's free game. Turns out it's a good thing I did too, the Fallout collection is free right now!
(dammit, see what I mean?)
"Even if I don't ever buy anything" is why I doubt it's going to work out. Epic is publicly right now saying that it's great at acquiring users. Yeah, I'll bet it is. People love free stuff. Is it great at turning those users into paying customers? Even at wholesale rates, I've gotten hundreds of games for free from Epic, which means they spent thousands of dollars on me, and I can't foresee an instance where I'll ever give them a cent back.