Epic Games Store's Unique Strategy: Free Games as a Cost-Effective User Acquisition Program

Epic Games has taken a unique approach to attract users to its platform, the Epic Games Store. While the store’s exclusives haven’t fared well, the company has found success with its weekly free games program. Despite the costs involved, Epic CEO Tim Sweeney believes that giving away free games has been a “very economical” user acquisition program.

Traditionally, companies spend a significant amount of money on advertising through platforms like Facebook and Google to acquire users for their games. However, Epic Games has taken a different route. Instead of investing in advertisements, the company pays game developers to distribute their games for free on the Epic Games Store. This approach has proven to be cost-effective, as it acquires users at a fraction of the price compared to traditional advertising methods.

Contrary to expectations, offering free games on the store has not negatively impacted the sales prospects of developers’ paid games. In fact, developers who participate in the free games program have seen an increase in the sales of their paid games. The free games raise awareness and attract more users to the store, ultimately benefiting the developers. This success has led developers to collaborate with Epic Games to release timed free games prior to launching their new titles, further boosting user awareness.

However, Epic Games has also attempted to attract users to the store through exclusive game releases. While some exclusives, such as the first Hades and Ooblets, have performed well, others have not been successful investments. Nonetheless, Sweeney acknowledges that the free games program has been the most impactful and cost-effective aspect of the Epic Games Store.

In conclusion, Epic Games Store’s strategy of offering free games as a user acquisition program has proven to be successful and cost-effective. Despite facing criticism and competition from established platforms like Steam, Epic Games has found a way to attract users to its store and support game developers in the process. While exclusives may not have achieved the desired results, the free games program has been a game-changer for the company.

Additional facts:

– The Epic Games Store launched in December 2018 as a digital distribution platform for PC games.
– The store offers a curated selection of games from both large and independent developers.
– The free games program started in 2019 and has continued to offer new games every week.
– The program has included popular titles such as Grand Theft Auto V, Borderlands: The Handsome Collection, and the Batman Arkham series.
– The free games are only available for a limited time, usually one week, encouraging users to regularly visit the store.
– Epic Games has also implemented an affiliate program, allowing content creators and influencers to earn a commission for every game sold through their referral links.

Key questions:

1. How does the free games program benefit Epic Games in the long run?
– The free games program helps attract users to the Epic Games Store, increasing its user base and potential customer pool for future game releases. It also helps establish the store as a viable competitor to platforms like Steam.

2. What challenges does Epic Games face in implementing the free games program?
– One challenge is striking a balance between offering high-profile games for free and ensuring that developers are still incentivized to release their paid games on the store. Another challenge is competing with other digital distribution platforms that have a more established user base.

Controversies:

One controversy surrounding the Epic Games Store’s free games program is the exclusivity deals it has made with developers. Some users and developers argue that these deals restrict consumer choice and create a fragmented gaming market. Additionally, the fact that Epic Games pays developers for the free games has led to criticisms that the program is unsustainable and could devalue the perceived worth of games.

Advantages:

1. User acquisition: The free games program has successfully attracted new users to the Epic Games Store, expanding its customer base.

2. Boost for developers: Developers who participate in the program often see increased sales for their paid games, as the program raises awareness and brings in more users to the store.

Disadvantages:

1. Potential devaluation of games: The free games program may create an expectation among users that games should always be free, potentially devaluing the perceived worth of games and impacting future sales.

2. Exclusivity controversy: Some users and developers are critical of the exclusive deals that the Epic Games Store has made, arguing that they limit consumer choice and create a divided gaming market.