Epic Games Store has seen a striking rise in users, from 108 million in 2019 to 295 million in 2024. However, there’s a catch: third-party revenue grew just 1.6% during that same time. This shift happened because Epic heavily focused on giving away free games, which attracted users but didn’t encourage them to spend money.
The Epic Games Store has been the talk of the town lately, particularly on platforms like Reddit. While it has grown by a massive 173%, user spending hasn’t kept pace. Many simply log in to grab free titles before heading out, which raises questions about Epic’s long-term strategy.
Back in 2018, when the Epic Games Store first launched, it aimed to rival Steam, the leading PC game platform. Steam gained popularity for being user-friendly and offering a robust set of features. However, it wasn’t always that way; it faced intense criticism when it began, which shaped its journey into the powerhouse it is today.
Epic initially tried to win over developers with a better revenue split and by securing exclusive game releases. Yet, this approach didn’t resonate well with gamers. The platform eventually dialed down those tactics and now emphasizes free games. This strategy has drawn many to the platform, but has also made it the go-to site for freebies rather than purchases.
Interestingly, Epic wasn’t always the only player in the game sales arena. Xbox is also vying for attention with its PC Game Pass, which has seen impressive growth. Recent reports indicate a 45% year-over-year increase in subscriptions. Unlike Epic, Xbox seems to have a more engaged audience willing to pay for games. This difference highlights that while both platforms struggle against Steam, they employ different methods for audience engagement.
One fact to note is that even though PlayStation hardware outsells Xbox by about 3 to 1, Xbox still manages strong sales for popular titles thanks to its dedicated user base. Xbox is also forging a path toward a unified experience across cloud and console gaming, which offers greater flexibility to gamers.
Meanwhile, the future of PC gaming seems solidly in Steam’s favor. Its seamless user experience keeps players coming back. Both Epic and Xbox may not need to directly compete with Steam to thrive, but they continue to find their niches. Epic Games Store brought in over $1.09 billion in 2024, while Steam generated a staggering $1.6 billion in just one month, December.
Most users see Epic as a free game hub rather than a full-fledged storefront. This speaks volumes about user habits today. Epic’s focus on free titles may have led to significant user growth, but it taught its players to rarely spend money. As the dynamics of gaming evolve, it will be interesting to see if Epic can shift its narrative from being a “free game launcher” to a primary digital game retailer.
