Epic aggressively launched the Epic Video games Retailer in 2018, paying tens of millions of {dollars} to safe unique objects to lure PC avid gamers away from Valve’s all-encompassing Steam. Six years later, Steam continues to dominate the consciousness of PC avid gamers like a vice.
So what’s the precise state of affairs with the Epic Video games Retailer? How has the corporate’s technique modified over time? Will it have the ability to beat Valve in relation to PC gaming market share? Are Epic Video games Retailer exclusives actually going away? And will not individuals simply log in to get free video games as a part of Epic’s candy perks and go proper again to Steam?
With all of this in thoughts, I interviewed Steve Allison, VP and GM of the Epic Video games Retailer, about what’s in retailer for the shop in 2025 and 2026. Our dialog began with an outline of final yr’s efficiency, which Alison stored stating. The headline right here is that gamers spent $400 million on third-party PC video games on the Epic Video games Retailer in 2025, an unimaginable 57% enhance. That determine fell by about 18% final yr, that means there will probably be “deep and constructive adjustments” in 2025, Allison stated. PC gamers spent a complete of $1.16 billion on the Epic Video games Retailer, a rise of 6%. The Epic Video games Retailer reached an all-time report in December 2025 with common month-to-month customers (MAU) of 78 million. Nevertheless, the typical MAU of 67 million individuals is down 1%, and the typical DAU of 31 million individuals is down 2%.
Allison stated he realized one thing was up on Steam when Epic gave away the sport without spending a dime. As you would possibly count on, a sport’s concurrent consumer depend on the Epic Video games Retailer will increase when it is a part of a free giveaway (greater than 77% of the 100 video games given away without spending a dime final yr set an all-time report for concurrent customers on the Epic Video games Retailer on PC). Nevertheless, this perk will increase the variety of concurrent gamers for the sport on Steam by roughly 40%. Allison applies this problem to Steam gamers. Steam gamers in all probability have already got the sport of their library, noticed protection of it on-line as a result of it turned free on the Epic Video games Retailer, and their buddies are speaking about it, so that they reinstall it and play it once more. In some circumstances, it’s possible you’ll even buy it outright on Steam.
However Epic faces an uphill battle right here. The principle motive for that is that the Epic Video games Retailer itself is not as straightforward to make use of as Steam for quite a lot of causes. To deal with this, Epic is rebuilding the shop on PC in order that the launcher is quicker and makes use of fewer reminiscence sources. “Actually, it feels quick and snappy, which is precisely what you’ll count on,” Allison stated. The brand new and improved Epic Video games Retailer is predicted to ship by June.
Epic’s imaginative and prescient for the Epic Video games Retailer, and what differentiates it from Steam, is that it’s a multi-platform retailer. Which means one retailer is linked to your PC, Mac, iOS, Android, and even different video games. Most of that is audio and textual content for events impartial of the sport. It is a bit just like the console expertise, however on PC and cell. As most PC avid gamers know, the Epic Video games Retailer has little or no neighborhood, and Allison acknowledges that. Boards coming to the shop appears primary, however we have been engaged on it for some time. Count on Epic to make some noise relating to the boards within the coming weeks.
After which there’s Fortnite. Battle Royale behemoth. all video games. Fortnite is vital to this push for Epic Video games Retailer. The corporate plans to make use of Fortnite to persuade PC avid gamers to get the sport from the Epic Video games Retailer as an alternative of Steam. To that finish, we’re leveraging the advertising energy of Fortnite and providing Fortnite Presents (Fortnite cosmetics together with character avatars that match your Epic account profile) in your sport purchases. Upcoming companions embrace Capcom, miHoYo, Pearl Abyss (Crimson Desert), S-Sport, MintRocket, and Kakao Video games as an preliminary participant. Allison expects this to have a big affect on gross sales.
After trying on the stats, I requested Allison a number of questions in regards to the particulars, current Epic Video games Retailer controversies (Alan Wake 2, for instance), and the grasp plan. The complete Q&A is beneath:
videogameaddicted: There is a notion on-line that the majority MAUs use the Retailer to launch Fortnite, however the statistics recommend that that notion is countered. However how precisely does this occur?
Steve Allison: Third-party common month-to-month lively customers are larger than Fortnite’s common month-to-month lively customers. There are a number of these customers proper now, however relying on the way you outline month-to-month lively customers, from a participant time perspective, sure, that is true. One thing like 60, 66, 33 or 65, 35. However if you take a look at it by way of transactions like MAU, procuring, shopping merchandise, perhaps free video games, MAU flips in the wrong way. Subsequently, we have to enhance conversions by way of all of the efforts we do. That is all.
videogameaddicted: Equally, there is a notion on-line that folks love your free video games program and so they be a part of and go away to get free video games. You’ve got in all probability seen this sort of recognition on-line. Do you see that altering? Are there any statistics that recommend that?
Steve Allison: I do not suppose the reply is totally true. The typical conversion fee for brand spanking new gamers acquired by way of free video games packages is roughly 16-25%. It depends upon the state of affairs, however over time it may be 16% or extra. This can be a pretty excessive conversion fee contemplating its dimension. That is one truth. The opposite factor we have now to return to is that 35% of participant time comes from video games utilizing proprietary IAPs (proprietary fee options for in-app purchases). We all know from anecdotes from our conversations with Riot and our conversations with EA that their spending relationships are with builders or publishers. We do not know that, however they’re comparatively spending with them on the anticipated fee that they are speculated to. In different phrases, extra commerce is completed by way of the shop than this dialogue suggests.
videogameaddicted: This touches on one thing. Larian’s publishing director was not too long ago talking on social mediaIn different phrases, giving every thing without spending a dime to everybody might drive up the numbers, however it would not create a viable storefront for promoting a premium expertise. And I feel that is his level, the conversion of paying for a brand new sport as an alternative of simply enjoying it. However are you suggesting that that is in all probability not the case?
Steve Allison: it isn’t. He was attempting to border “Alan Wake” in that context, however that is not true. “Alan Wake” offered very nicely and Treatment’s assertion there was revealed… We didn’t converse to Treatment about it. They did it on their very own to verify the world knew it wasn’t true. Now, from a market share perspective, we’re seeing some fluctuations. So typically it is as small as 1-2 %, and typically it is 25-40 %. So what we have to do is set up consistency and eradicate variability. So, for me, it is essential that we hit the goal…If we hit 20, 25, 30% of the share as anticipated throughout all ships on the similar time, that may be $2 billion in third events, and much more for those who embrace the individuals utilizing IAP. Subsequently, our aim is to be constant. Subsequently, doing all of the participant jobs which are anticipated of us will drive conversions. Within the context of this dialog, this is among the greatest issues we have to do to create consistency.
videogameaddicted: Talking of Alan Wake, one factor your put up would not embrace is unique content material. Alan Wake was additionally a real unique. Are you continue to on this sport? Are they nonetheless value it to you? Is that this one thing we’ll nonetheless see going ahead, or do you’re taking the place that there are higher methods to run a retailer than having real exclusives like Alan Wake 2?
Steve Allison: A number of issues. In order that was positively an early technique. There are such a lot of releases on PC that you would be able to add 1,000 video games and strike out 1,000 instances. So whereas we have been restricted within the quantity of content material we might embrace, we targeted on probably the most impactful content material we might embrace. That is actually essential. We presently have 6,000 video games in our catalog. Within the historical past of the shop, we have now had fewer than 150 unique offers. That’s the first level I want to make. 120 of these transactions occurred in 2019. Then, as we moved to self-publishing, we moved away from that technique a bit.
Within the case of Alan Wake, we even have a third-party publishing staff that’s a part of the shop group. We fund tasks in a different way than guaranteed-based transactions. We’ll fund your venture and enable you to deliver your sport to market on all platforms, however in that case the PC SKU will probably be unique. However proper now, we have now eight or 9 titles that we’re funding by way of Epic Video games Publishing. Apart from that, I have not completed any minimal assure sort transactions within the final three years. So our technique shifted there. However as soon as we fund and publish a title, the context could be very completely different from the dialog that occurs about how we did issues in 2019. And we personal it. It was an actual success for us. Issues change, publishing enterprise, these video games are unique to the shop.
videogameaddicted: It will be nice to get some perception into long-term play right here. You are going up in opposition to Steam, and Steam is a large competitor and really troublesome to vary, not simply by way of statistics but in addition by way of mindset. And I’ve all the time heard from individuals at Epic, and never simply anecdotally, that the Epic Video games Retailer is not worthwhile. Is your aim to be greater than Steam? Is that really attainable? Are you earning profits? Can I make a revenue with this enterprise?
Steve Allison: So there are a number of methods to seek out out. After we discuss Steam, we discuss every thing, together with first-party video games. If we’re speaking in regards to the Epic Sport Retailer, first-party and third-party mixed, they only deposit 12% of the income they make from Epic’s first-party video games into the shop. Though this isn’t our accounting methodology, we might take this view internally. The shop is breaking even and making as a lot revenue as is affordable.
On the third occasion facet, we proceed to speculate independently. There’s rather a lot to do. We’re investing in these packages for builders. We’ll proceed to put money into content material by way of publishing. And that funding will present up as a sunk price. However it’s all from a scaling perspective. But when we get to 25-30% market share, that is our plan… Sure, I feel if we do a fantastic job and push our share past Steam and others, we’ll be very completely happy. However our aim is not to bounce on Steam’s grave. It is about establishing a constant place the place builders can count on to promote 25-30% of their video games. That means, when you get there, third events will profit as nicely, and third events and first events will profit tremendously.
What we put money into is third events. Now we have to do all this work. Additionally do not forget that 60% of your viewers makes use of each. 40% do not. Steam has a number of customers who by no means flip round, however it additionally continues to draw a gaggle of gamers who’re discovering PC gaming for the primary time. They’re transferring away from consoles. The multi-platform retailer can have a distinct set of options and completely different alternatives. The bottom line is to determine constant efficiency of market spend (resembling the present 25-30%). I might be tremendous excited if I might get previous that, however I will be in good condition as soon as I get there.
videogameaddicted: So simply to be clear, is the Epic Video games Retailer worthwhile?
Steve Allison: First occasion, very worthwhile. For first events and third events, you earn a small revenue by depositing 12% of the primary occasion’s income into your retailer, similar to your retailer’s prospects.
Wesley is videogameaddicted’s Director of Information. Discover me on Twitter @wyp100. Wesley will be reached at wesley_yinpoole@videogameaddicted.com or confidentially at wyp100@proton.me.