Epic thinks EGS could make up 35-50% of the PC gaming market by 2024

Last month, a filing in the Epic v. Apple court case showed the public just how much money Epic has been throwing around to secure exclusive “guarantees” and offer free games in an effort to establish a market foothold for the Epic Games Store (EGS). Now, a new filing in the case gives a detailed breakdown of how that money was spent over the first 11 months of the Epic Games Store’s existence (through October 2019).

While this version of Epic’s Review of Performance and Strategy is a bit dated now, it still gives the clearest public indication yet of how Epic sees huge upfront spending on free and exclusive games as key to attracting new users to the EGS. Epic hopes its investment will help to eventually make the EGS a self-sustaining, profitable storefront with a significant share of the PC gaming market.

How to make money with free games

All told, in the first 10 months of the EGS’s existence (through September 2019), Epic spent roughly $11.6 million to distribute just over 104 million free copies of 42 different titles, the filing shows. The “buyout price” paid from Epic to the publisher for each individual title varied, but the middle half of titles (25th to 75th percentile) cost $80,000 to $350,000 each. Two of the free games in the bunch were worth at least $1 million to Epic—Mutant Year Zero ($1M) and Subnautica ($1.4M)—while offering free copies of the three collected Batman: Arkham games cost Epic $1.5M total.

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