[Twitter] Epic Games paid 9.49 million euro for Control exclusivity - Overclock.net - An Overclocking Community

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[Twitter] Epic Games paid 9.49 million euro for Control exclusivity

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post #1 of 162 (permalink) Old 09-21-2019, 12:26 AM - Thread Starter
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[Twitter] Epic Games paid 9.49 million euro for Control exclusivity

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Digital Bros, parent company of 505 Games, has disclosed that they received a payment of 9.49 million euro from Epic Games for Control.

Which I would imagine is for exclusivity.

55% of that payment going to 505 Games.
Quote:
Yep. The payment from Epic was 100% for Control and was for the exclusivity deal. There was no payment from Sony or Microsoft.

Unclear if there were any other strings attached to the payment, other than exclusivity ofc.
https://twitter.com/ZhugeEX/status/1175025884056756225

The earnings report in Italian: https://www.digitalbros.com/wp-conte...iugno-2019.pdf

With that kind of upfront payments it is no wonder Epic is getting exclusivity deals left and right. To put it under some perspective, that's more than the amount the publisher gave to Remedy with their publishing deal or from 1/2 to 1/3 of the whole game's budget.

https://en.wikipedia.org/wiki/Contro...ng_and_release
https://www.pcgamesinsider.biz/news/...n-20m-and-30m/

How sustainable it is? I don't know.
How much did they pay for Borderlands 3? I bet a ludicrous amount.

EDIT: Article from Ars summing everything up: https://arstechnica.com/gaming/2019/...c-exclusivity/

#EnthusiastLivesMatter

Last edited by Imouto; 09-21-2019 at 12:45 AM.
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post #2 of 162 (permalink) Old 09-21-2019, 03:56 AM
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Do we currently know how many sales Control has led to on the platform?

Given that the cost to actually host the game itself is (or should be) extremely marginal I can still see them turning a profit with this rather easily.

I would imagine if the game itself garners 1.5 million sales then they are breaking even, which isnt a ludicrous number. (based off of Epics 12% margin). Its also important to note that Im sure this covers the life of the game itself. Even if they dont turn a profit on this particular title having the exclusive is still bringing customers to the platform which has value unto itself. We also dont have the details of the contractual agreement, it is completely possible there are various clauses to insulate Epic from monetary loss.

If anything these numbers really show how ridiculous these online sales platforms have become when looking at what used to be 30% margins in the PC space and still is in the mobile world (iirc). I have absolutely no doubt that these overheads have done quite a bit to lead to the current state of monetization in gaming. I have a hard time faulting Epic as a platform for a deal like this or the the publisher/developer of the title itself, this appears to be a solid business arrangement for both parties.


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post #3 of 162 (permalink) Old 09-21-2019, 06:09 AM
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I hope this doesn't mean Assetto Corsa is going to move to Epic Games store.

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post #4 of 162 (permalink) Old 09-21-2019, 06:34 AM
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Another game I wont be playing. I didn't really have any interest in it either, so meh?
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post #5 of 162 (permalink) Old 09-21-2019, 07:08 AM
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Quote: Originally Posted by TheBDK View Post
Another game I wont be playing. I didn't really have any interest in it either, so meh?
I got the game free with my GPU and have found it to be really meh, it only lasted about 15 minutes for me. The RTX effects look good but when it drags a RTX 2080S to 40FPS it becomes useless.

9.49M is crazy for exclusivity, like Imouto said, I can't imagine how much they spent on BL3.

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post #6 of 162 (permalink) Old 09-21-2019, 07:46 AM
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Epic has to go down for good, 10M for a 5/10 game like control, imagine what they paid for borderlands 3 and metro, this is absolutely ridiculous
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post #7 of 162 (permalink) Old 09-21-2019, 07:49 AM
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I wonder whats the percent of people who dislike Epic games store only because they support Valve
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post #8 of 162 (permalink) Old 09-21-2019, 08:04 AM
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I have no problem with corporations dumping money as long as actual developers get most of it and it doesn't end up in pockets of yet another middle man (publisher, what ever tick).

Would rather have 10 small store fronts (Steam, Epic, ... are this), than be stuck with one monopolistic Steam dictating everything and ripping developers off.

10M is low compared to how much large modern games can cost to develop. It's no longer the garage 90s working for food in your teens.
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post #9 of 162 (permalink) Old 09-21-2019, 08:20 AM
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it seems that some game studios dont receive a chunk of the money they deserve, It might be my perception but I think that the case with deep silver (and 4A Games)
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post #10 of 162 (permalink) Old 09-21-2019, 10:40 AM
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Quote: Originally Posted by JackCY View Post
I have no problem with corporations dumping money as long as actual developers get most of it and it doesn't end up in pockets of yet another middle man (publisher, what ever tick).

Would rather have 10 small store fronts (Steam, Epic, ... are this), than be stuck with one monopolistic Steam dictating everything and ripping developers off.

10M is low compared to how much large modern games can cost to develop. It's no longer the garage 90s working for food in your teens.
The problem is it's extremely anti-consumer, yet tons of people just can't grasp that fact. Valve doesn't dictate anything with Steam. They don't do "Steam Exclusives", they allow developers to sell their games simultaneously on other platforms. They even allow you to redeem games sold on other platforms on Steam. I've bought Steam game keys from Humble Bundle before, for example. Valve charges a pretty high margin, but they also have the most mature platform, with the widest audience with a ton of features. It's the "Premium Launcher" so they charge premium prices.

Even though Steam is the biggest "launcher", they do not really engage in monopolistic behavior. They aren't trying to actively force developer's or consumer's hands.

Epic Games on the other hand is a tiny player in the "launcher" market, but out of the gate they've engaged in anti-consumer, monopolistic behavior. They tried enticing developers to their platform under the guide of being "friendly" by taking a small cut. But their platform sucks, lacks of a ton of important features, and nobody wanted to use it. So they had to resort to paying monstrously huge bribes for anti-consumer exclusivity agreements.

If you want to compete with Steam, do it by building a better product that offers better value for developers and consumers. Don't do shady back-room deals to force people to buy into your platform.
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