CEO Tim Sweeney Reflects on Epic Games Store Strategies Discussing Mistakes

Tim Sweeney, the CEO of Epic Games, recently reflected on the company’s strategies, acknowledging that while the free game giveaways have been a successful business tactic, many of the store’s exclusivity deals did not yield the desired returns.

During a press call, Sweeney candidly discussed the Epic Games Store’s methods for attracting users. He admitted that while some of the exclusivity deals performed exceptionally well, many others turned out to be poor investments.

In contrast, Sweeney praised the free games program, calling it “magical” and “highly economical,” despite initial concerns that offering games for free might seem counterproductive. He explained that, although it might seem counterintuitive, companies typically invest heavily in acquiring users for their games. By offering free games, Epic Games can achieve this at a fraction of the cost of traditional methods like Facebook or Google ads.

Sweeney noted that for about a quarter of the price it would take to acquire users through conventional advertising, Epic Games can pay developers for the rights to distribute their games for free, thereby attracting new users to the Epic Games Store at a very low cost.

He also mentioned that contrary to what one might expect, offering games for free does not harm their sales potential. In fact, developers often see an increase in the sales of their paid games on the store after giving away a free title, as it significantly boosts visibility and awareness.

Sweeney highlighted that this approach has become so effective that developers frequently approach Epic Games before launching a new title, eager to collaborate on a timed free release to generate interest and awareness for their upcoming games. He emphasized that this strategy has proven to be the most cost-effective aspect of the Epic Games Store’s operations.

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