Earnings report shows Epic Games paid $10.5 million to secure Control as a PC exclusive

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In recent months, Epic Games has attempted to bring attention to their Epic Games Store by obtaining high-profile games as timed exclusives to their platform. Publishers of titles like Metro Exodus, Borderlands 3, Shenmue III, Detroit: Become Human, and many, many more, agreed to six-to-twelve-month-long contracts with Epic, ensuring that their games would launch first on the EGS. Securing games would obviously cost Epic some amount of money, and considering their success with Fortnite, it's clear that the company has copious amounts of cash to throw around, but the finer details as to just how much Epic was spending has never been officially divulged.

But, thanks to a newly published earnings report, we might have some insight into the lengths Epic is willing to go to, to bolster the exclusive content for their storefront. Digital Bros, the Italian parent company of 505 Games, and publisher of the recent Remedy-developed Control, disclosed in the report that Epic had paid them 9.49 million Euros for timed exclusivity rights to Control. The payment took place back in June, prior to the August 27th release date of the game. Considering that it was officially stated by Remedy that their budget for Control was in the ballpark of 20-30 million Euros, this is a significant amount of money paid for the game.

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FAST6191

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Multiple people now have taken the position that money would be better spent on spit and polish for the program.

We could contemplate things found in dry business, marketing and whatnot textbooks, however they are dry so I will spare us that one.

How many of you seriously use early stage open source software aimed at end users (or indeed open source software that isn't firefox, chrome, thunderbird or one of their spinoffs?), hacked devices either in general* or in the modern world where there probably is a cheap device you can have delivered to you for less money than a couple of games**

*I have mentioned before that hacked devices back when often represented best in class devices as far as portable pocket computing (if you know of a device in the DS era that you could have a nice ARM processor to code in C, with a touch screen and wifi for less price than a DS and flash cart then you missed out by keeping it to yourself) you could program for or thing what connects to your TV. TVs getting VGA and then HDMI, and the rise of the raspberry pi and/or phones/tablets (possibly with HDMI out) changed quite a bit here.

**a popular high street/catalogue shop in the UK was selling off these quite nice android tablets for some £80 and installed a bunch of them in various places to do dedicated tasks***. Back during the netbook era I had people I had taught the rudiments of using a computer a few years prior and still not being that much better at it come back to me having got a netbook a like off their own back (don't know why they won't call me to point them in the right direction for such purchases but different discussion there) to use for one specific task and consider it a bargain at twice the price.

***relevant
 
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gameboy

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Control is probably the best (non-Nintendo) game Ive played in the last 5-10years, the other being Infamous Second Son but nothing really good since twp generations ago
 

FAST6191

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Control is probably the best (non-Nintendo) game Ive played in the last 5-10years, the other being Infamous Second Son but nothing really good since twp generations ago
If Mario Galaxy was 2007 then what have they done to prove their worth since then?

Anyway interesting. I had a look at the trailer when people were discussing it on IRC the other day and it did not sell me on it as a game worth this kind of investment. I will have to give it a second look though (I really do love Max Payne).
 

Xzi

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It stuff like this why devs cant stand consumers...
Lol, what? They can't stand the people who crowdfund development and/or keep them in business? The Fortnite money that Epic is throwing around came from consumers too, y'know. Well, mostly from parents' stolen credit cards, but I digress.
 
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FAST6191

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Lol, what? They can't stand the people who crowdfund development and/or keep them in business? The Fortnite money that Epic is throwing around came from consumers too, y'know. Well, mostly from parents' stolen credit cards, but I digress.
I think it was probably more the comment about big devs not being strapped for cash. While most seem to go out with a whimper (either fading in obscurity and maybe noted on one or two sites, or being bought out by one of the big 5 and shuttered in a corporate reshuffle maybe 6 years later) rather than a solid gore spreading bang then how long does the average one last? How long has it been since we witnessed the death of THQ? How often is Capcom's financial state pondered? The less said about Konami the better. Didn't EA have a nice round of layoffs earlier this year? Somehow it was headline worthy a while back when Ubisoft didn't lay people off this year....) and while crowdfunding is in some ways nice to have, or have more... codified/convenient/crystallised than it was in years past (I would argue the concept goes back almost pre internet and those software mail in houses did all sorts of future loan fun and games there, but definitely predates paypal and we have some fairly direct examples of a finance pool being made with paypal once that took off in earnest) it is hardly a magic funding bullet.

I would agree most devs are whining chancers (see various comments about second hand games all but taking food out of the mouths of their starving children, and the "games are just so much more expensive nowadays" where inflation and increased power means that comment only holds true if they have to always be pushing the tech boat out there, and the whining about conditions and pay (that these theoretically top notch coders willingly put up with)) but to say they have all the money and crowdfunding should be enough is a bit strong really.


Similarly I have yet to particularly buy an argument as to why crowdfunded games going for another launcher (again free and trivial software differences) is treated not far off one Mr Sweeny wandering up, dropping trousers and dick slapping said person's grandmother during Sunday lunch.
 

Xzi

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I think it was probably more the comment about big devs not being strapped for cash. While most seem to go out with a whimper (either fading in obscurity and maybe noted on one or two sites, or being bought out by one of the big 5 and shuttered in a corporate reshuffle maybe 6 years later) rather than a solid gore spreading bang then how long does the average one last? How long has it been since we witnessed the death of THQ? How often is Capcom's financial state pondered? The less said about Konami the better. Didn't EA have a nice round of layoffs earlier this year? Somehow it was headline worthy a while back when Ubisoft didn't lay people off this year....) and while crowdfunding is in some ways nice to have, or have more... codified/convenient/crystallised than it was in years past (I would argue the concept goes back almost pre internet and those software mail in houses did all sorts of future loan fun and games there, but definitely predates paypal and we have some fairly direct examples of a finance pool being made with paypal once that took off in earnest) it is hardly a magic funding bullet.
I'd argue that most of the developers you mentioned here would have found themselves on solid financial ground if they hadn't managed to release one steaming turd after another. In Capcom's case, all they needed was a single big hit (Monster Hunter World) to give themselves a positive future outlook. Gaming is still a business like any other, so you have to create quality products which consumers can see the value in. Nobody's obligated to buy games which are universally panned by critics just because EA or some other ethically-lacking publisher already sunk an initial investment into them.

Similarly I have yet to particularly buy an argument as to why crowdfunded games going for another launcher (again free and trivial software differences) is treated not far off one Mr Sweeny wandering up, dropping trousers and dick slapping said person's grandmother during Sunday lunch.
That one should be obvious: false advertisement and/or bait and switch are universally reviled (potentially even illegal) business tactics. The blame for which falls entirely on Epic because they try to purchase exclusivity rights as close to a game's release as possible. There would be no issue if games seeking crowdfunding clearly advertised EGS exclusivity from the start, but I think both developers and Epic understand that doing so would significantly reduce the chances of meeting their crowdfunding goal.
 
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It's a shame because this game is really good, but none of their releases ever seem to get the attention and money it deserves. I don't blame them for taking the 10 mil
 

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so, Epic roughly paid for 175,000 copies of Control (priced $60 per copy). Is it a good amount of money? Will remedy got another revenue if someone buys control on epic? or that's the total money they will get under the exclusivity contract?

the question is whether epic could sell more than 175,000 copies in 12 months before it is available on steam.
 

FAST6191

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Remember when companies didn't need kickstarter/crowdfunding to fund games? Yeah, me either.
Yes but it was still a point where people could reasonably do it from their garage/bedroom and distribute them as a tape or floppy disc (back when they were actually floppy even), though even then for certain things you would see demos and prototypes made and initial orders used to funder wide scale production or some additional development. That said why not have crowdfunding as an option? It is not without its downsides but it seems to have caused games to happen which might not have and that is not a bad thing.


I'd argue that most of the developers you mentioned here would have found themselves on solid financial ground if they hadn't managed to release one steaming turd after another. In Capcom's case, all they needed was a single big hit (Monster Hunter World) to give themselves a positive future outlook. Gaming is still a business like any other, so you have to create quality products which consumers can see the value in. Nobody's obligated to buy games which are universally panned by critics just because EA or some other ethically-lacking publisher already sunk an initial investment into them.


That one should be obvious: false advertisement and/or bait and switch are universally reviled (potentially even illegal) business tactics. The blame for which falls entirely on Epic because they try to purchase exclusivity rights as close to a game's release as possible. There would be no issue if games seeking crowdfunding clearly advertised EGS exclusivity from the start, but I think both developers and Epic understand that doing so would significantly reduce the chances of meeting their crowdfunding goal.

I don't disagree that trying to make profit from sub par product is difficult and better to have good product in most cases (or for a measure of good -- don't want to have the kiddies still playing it extensively next year when the sequel hits), but if the point was about money had to spend on further projects...

I can't get to false advertisement here. Or if it is then it is so utterly minor (on par with a generic art post game bonus skin not being there) that complaining as bitterly as some seem to be is bizarre. As far as being such a massive negative for potential funding endeavours prior even to the event... I guess I massively underestimate the fondness people have for Steam and such a thing would utterly boggle the mind -- normally a difference in vendor is nothing to note beyond maybe having to bust out the wallet rather than having it locked and loaded into a service already.

so, Epic roughly paid for 175,000 copies of Control (priced $60 per copy). Is it a good amount of money? Will remedy got another revenue if someone buys control on epic? or that's the total money they will get under the exclusivity contract?

the question is whether epic could sell more than 175,000 copies in 12 months before it is available on steam.
Probably a few more copies than that if revenue sharing works as it normally does, and I don't know if they have another publisher involved here which is what traditionally gets most (maybe all in the case of a work for hire, though there might be bonuses for the devs).

Anyway we don't know the terms of the contract and we rarely see leaks of such things, nor have we seen any such contracts for another company, much less one in their particular position (a potential top tier monster hit is presumably more lucrative than some indy game), to speculate here. The only reason the numbers are known is because someone tried some analysis on financial numbers from their publisher. Two main scenarios as I see it or have seen such things play out for somewhat related businesses.
1) Yes it is all they will get either for the period in question or all time on that platform. Not the most common approach but if the money is either in line with or more than what their sales projections would be, or the injection of cash means they have enough cold hard money in the bank rather than potential earnings (someone offering reasonable cash right now might be better if you are broke than holding out for months/years for a slightly better offer) then people occasionally take it. In this case the game is coming to consoles as well I think, for many the PC is something of an afterthought (and I doubt the modding and multiplayer scenes will drive much here) and if the eventual release on other platforms is truly what people say then this could be a slight delay people get paid for. That said have we seen any games actually make it out of exclusivity yet to see what the holdout vs buy it anyway ratios are? Edit. Or has anybody done a console vs PC sales comparison and compared to prequels, general historical trends (do bear in mind a PC release 6 months later is also sadly common), review scores (possibly adjusted or factoring in user scores) and whatnot?
2) Any earnings made above what Epic paid for this (or some significant fraction of it -- Epic might be writing some of it off as advertising) will start to generate revenue again. Whether it is the standard cut or some reduced one I would not like to speculate upon. Think what happens when publishers give money to an author to write a book, or music groups give money to a band to make an album. In some cases they might still get a tiny percentage before it is all paid off but that is usually an accounting or legal trick to dodge some issue in some country, or keep them at least a little bit keen to continue promotion (or have some income to not end up homeless if they are an author which presumably spunked away their advance already).
 
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Xzi

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As far as being such a massive negative for potential funding endeavours prior even to the event... I guess I massively underestimate the fondness people have for Steam and such a thing would utterly boggle the mind -- normally a difference in vendor is nothing to note beyond maybe having to bust out the wallet rather than having it locked and loaded into a service already.
There's no need to bring Steam into the equation at all. Even when observed in isolation, EGS is a flaming bag of dog shit. Yes, the service is "free," but the entire reason for its existence is an attempt to get people to trust Epic with their money/payment information. Which is always going to be a hard sell when your software breaks down into this hot mess every other time it's launched.

It's not so much that Steam does things better as it is that everyone does things better. GOG, Origin, the Xbox app, uPlay, and Battle.net all rank ahead of EGS for providing an enticing service to the consumer. I haven't tried out Rockstar's launcher yet, but I'd be very surprised if that wasn't also superior to EGS in a number of ways. If you were to judge Epic solely by their launcher, you'd think they were a failing indie developer.
 
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FAST6191

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There's no need to bring Steam into the equation at all. Even when observed in isolation, EGS is a flaming bag of dog shit. Yes, the service is "free," but the entire reason for its existence is an attempt to get people to trust Epic with their money/payment information. Which is always going to be a hard sell when your software breaks down into this hot mess every other time it's launched.

It's not so much that Steam does things better as it is that everyone does things better. GOG, Origin, the Xbox app, uPlay, and Battle.net all rank ahead of EGS for providing an enticing service to the consumer. I haven't tried out Rockstar's launcher yet, but I'd be very surprised if that wasn't also superior to EGS in a number of ways.

People always seem to want to bring up Steam (it is the overwhelmingly dominant player in this space) and I would contend it was OK to do so there, though I will throw in the others as well if it makes a difference. Is it money/payment information or not having to pay a tithe to a do nothing company to distribute a game, and possibly become the next tithe taker (being the bank is a pretty sweet position after all, one Epic know all too well thanks to the whole Unreal engine thing)?

As for enticing service. If they have the games... content is king after all.
 

DANTENDO

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I think it's a very good game!
Yes it is but what was unusual the boss fights were in the side missions which is strange as players may not experience them I kno most gamers try and do all the side stuff anyway but luved the game deserves a sequel
 

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Is it money/payment information or not having to pay a tithe to a do nothing company to distribute a game, and possibly become the next tithe taker (being the bank is a pretty sweet position after all, one Epic know all too well thanks to the whole Unreal engine thing)?
There are a number of factors that translate into desirability of a storefront-launcher, and having some assurance of your payment information being secure is definitely a big one.

As for enticing service. If they have the games... content is king after all.
Other storefronts have vast amounts of quality games AND useful launcher features. At the rate it's currently going, it'll be a decade or more before EGS is able to compete on either of these levels. Until then, if all that matters are the games themselves, people are better off pirating.
 
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gameboy

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If Mario Galaxy was 2007 then what have they done to prove their worth since then?

Anyway interesting. I had a look at the trailer when people were discussing it on IRC the other day and it did not sell me on it as a game worth this kind of investment. I will have to give it a second look though (I really do love Max Payne).

Control is only good on pc unfortunately, its a 10/10 on pc (minumum rx470/570 gtx970/1060) but a 4/10 on console. Forgot to ad Batman Arkham Knight alongside Infamous Second Son.

And if youre asking about Nintendo, there were a ton of 10/10 games on wii and 3ds, and the WiiU did have good games but they literally released One game every Four months so it tanked.
 
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