Epic Games Store completely eliminates revenue fees for smaller developers

It has been over six years since Epic started undercutting Steam’s 30 percent revenue share for developers, asking for just 12 percent of sales on its then-new Epic Games Store. Now, Epic is going even further by reducing those fees to zero for a game’s first $1 million in annual sales.

The newly announced fee structure will go into effect in June, Epic said, and will apply to a developer’s revenue on a “per app” basis. After the first $1 million in annual sales, apps will be charged the usual 12 percent fee for listing on the Epic Games Store.

This isn’t the first time Epic has offered a financial break to smaller developers. Back in 2011, the company eschewed royalty payments for the first $50,000 in sales for projects made with the newly free Unreal Development Kit. By 2020, that royalty-free grace period for Unreal Engine projects was increased to cover the first $1 million in lifetime sales for a project.

Looking out for the little guy?

Epic’s focus on the low end of the gaming revenue scale is something of an inverse of Valve’s fee structure on Steam. In 2018, Valve cut its default 30 percent revenue share to 25 percent, but only for lifetime per-game earnings in excess of $10 million. Valve’s fee goes down again to 20 percent after a game hits $50 million in lifetime sales.