Epic Games offered $200m to Sony for 1st party titles on EGS

1 : Anonymous2021/05/08 11:03 ID: n7mwf1
Epic Games offered $200m to Sony for 1st party titles on EGS
2 : Anonymous2021/05/08 11:32 ID: gxdlux0

More specific details:

They offered $200m for 4-6 Sony 1st party titles(pretty low considering how well they're selling, not high enough for EGS exclusivity imo) to release exclusively on the Epic Games Store

The document is from September, 2020, so Sony most likely declined the deal, as Days Gone is releasing on Steam and EGS simultaneously, just like HZD and Death Stranding did.

Not from this document, but from a previous one: Epic Games makes these deals with the rule that they take a 100% cut from the sales of the game, until the sales revenue reaches the amount Epic paid to the company, so Sony would not get a cent from the sales of these games until their combined revenue reaches $200m, which is imo, a horrible deal since Sony will easily make that much without an exclusivity deal.

ID: gxdms3q

They paid 140m for Borderlands 3 so paying 200m for 4-5 titles feels like a scam

ID: gxdnk51

Yeah, it's an insultingly low offer from Epic.

ID: gxe3a3h

It's fair if Sony gets to pick which games those are. 4 Sony published titles: Concrete Genie, MediEvil, Wipeout Omega Collection, Sackboy: A Big Adventure. Throw in Knack 2, why the heck not.

ID: gxdnyhu

115m not 140, and it wasn’t entirely to get the game on EGS.

As reported by PC Gamer, in a series of documents as part of its ongoing legal battle, Epic Games has revealed that the cost of Borderlands 3’s six-month PC exclusivity on the Epic Games Store totaled $115 million. The information revealed was part of Epic’s “Review of Performance and Strategy” report in October 2019. The document showed that of the $115 million, $15 million was allocated to marketing, $20 million were non-recoupable fees, and the remaining $80 million was paid as an advance to publisher 2K Games ahead of the game’s release. Despite the big price tag of the exclusivity deal, Epic managed to recoup $100 million from sales of Borderlands 3 merely two weeks after release.

ID: gxdmzir

That last point is hilarious. Who does epic think they are with a stipulation like that? Sony's player base is massive compared to epic. (games store)

What a slap in the face offer.

ID: gxdnj2r

Fortnite success went to their head.

Let's all remember Fortnite was a failure paid project which got saved last second by the addition of a free Battle royal mode.

Who remember Fortnite adventure thingy.

Reality is that Epic ain't a massive success outside of their Engine and Fortnite.

But because of their revenue they act like they own the place.

ID: gxdn5yl

Right, in the end Sony really got nothing for the exclusivity. Just a loan.

ID: gxeceez

That is the standard deal Epic does. It entirely eliminates risk from the develope

. If you sell less than that, it is just free money. If you sell more than that, the result is the same as if you didn't take the deal. So you aren't really losing anything.

ID: gxe7wdb

So how is this practice any different then what they’re suing apple for? Rules for thee not for me?

ID: gxebbtl

Rules for thee not for me?

That's exactly Epic, especially Tim Sweeney. I remember that one time Tim Sweeney had a several threads long Twitter meltdown about how shitty Microsoft is for locking their own, first-party games to the Windows Store on PC. Tim Sweeney is the definition of hypocrite

ID: gxeym5h

Epic Games makes these deals with the rule that they take a 100% cut from the sales of the game, until the sales revenue reaches the amount Epic paid to the company

Holy shit I didn't know that. That ruins the point of being on their platform in the first place... I wonder how many indie games just never get a profit past the initial buy out. Epic is truly scum.

ID: gxdodf1

That is a shit deal. No real extra money, just money upfront. Only gain would be if the games never sold beyond 200.

3 : Anonymous2021/05/08 12:05 ID: gxdod9l

Only 200m?

Sony must have been laughing

ID: gxdvut0

I mean Sony knows the deep pockets Epic has since Sony knows how much Fortnite makes every year.

600 Million would probably get close to what they like to see. and this would be for older PlayStation exclusives because Sony‘s profit model revolves all around big new Triple A exclusives that can only be played on PS4 or PS5.

ID: gxeejed

Is that their profit model? They cut prices on first party titles way faster than they need to before the ps5 launch. I had just assumed that their largest profit was the 30% cut on third party titles

ID: gxeiw00

For 4-6 games lol

ID: gxekotk

That's the punchline ahaha

4 : Anonymous2021/05/08 13:43 ID: gxdxg7q

Here Sony just give them these titles and enjoy the cool 200M:
- Knack 1
- Knack 2
- Medievil
- Infamous Second Son
- Infamous First Light
- Concrete Genie

ID: gxe6dbf

I would include Killzone shadow fall and order 1886 with that lol

ID: gxeyuoe

The Order 1886 was an OK game, the issue is that they were selling it for 60 bucks. It was more like a 20 dollar game at launch.

ID: gxeyrb6

Excuse me Infamous Second Son was amazing. Wtf.

ID: gxdz64g

Knack 1 and 2 are wayyy too expensive for Epic dude, they should be paying 200m for each

ID: gxe6vp2

That's lowballing it tbh. At least 600m each

ID: gxey4k4

Knack Baaaaaaaby!

ID: gxepq70


ID: gxes2nq

Wait hang on, Infamous games on PC would be fucking sick

ID: gxeueok

Does no one liked medieval? I loved the remake

Infamous is fire.

ID: gxeolik

This reminds me, I've gotta get on to properly getting into Concrete Genie. I started that a few months ago and never got back to it because uni work really picked up at the time. But I was super impressed with it early on!

ID: gxezy53

That would be hilarious, I imagine the deal stated something about them needing to games over a certain rating on metacritic or passed a certain sale number on PS. If they didn't in sure Sony would have done it and given them bottom barrel shit

5 : Anonymous2021/05/08 11:52 ID: gxdncxt

Well that seems like a pretty severe lowball…

6 : Anonymous2021/05/08 11:52 ID: gxdnaxd

That's insultingly low

ID: gxdw734

7 : Anonymous2021/05/08 11:05 ID: gxdjvu8

Hmm interesting I wonder if that's enough to fund a new game.

ID: gxdke9e

It varies wildly, The Witcher 3 cost around £50m, whereas Cyberpunk ran them nearly $300m!

Most big Sony exclusives cost $100-200m afaik, so it will likely fund 1-2 new titles, but the money offered is likely just licence fees to port to PC, they'll then likely have an agreement on royalties on sales.

ID: gxdwrou

I heard Modern Warfare 2 had a budget of around $200mil, but I think some of that went into marketing, which they did ALOT of when it was coming out.

ID: gxdobxh

Epic takes 100% of sales until they exceed 200m, at which point sony gets a cut. An insulting offer if you ask me

8 : Anonymous2021/05/08 13:32 ID: gxdw9qk

If they paid 150 mil for 6 months exclusivity on borderlands i don't know which 4 playstation games they expect to get for 200 mil.

ID: gxe7dku

They didn't pay 150m for borderlands. They just guaranteed that only if borderlands does not sell enough, but it sold enough for them not to pay that sum after a few days.

9 : Anonymous2021/05/08 12:35 ID: gxdqwl1

I hoped Epic Games got laughed out of that meeting.

10 : Anonymous2021/05/08 17:14 ID: gxem6mg

Fuck Tim Sweeney. If epic wants exclusive games then stop trying to throw money at blocking games from other stores and instead fund and develop your own games, y'know, like Sony and nintendo do.

Fuck, the only reason I even had epics launcher on my PC was that unreal tournament game that never went anywhere.

11 : Anonymous2021/05/08 20:16 ID: gxf8bmf

Bruh, Thanks god Sony declined it.

12 : Anonymous2021/05/08 11:49 ID: gxdn3lu

But I thought Epic hated exclusive "walled gardens" where the operator of the store gets all the money?

13 : Anonymous2021/05/08 13:39 ID: gxdwy8t

The way Epic negotiates in those emails is obnoxious and cocky af. I mean good for them I guess but like fuck off.

14 : Anonymous2021/05/08 18:09 ID: gxesysj

The only epic thing about it is their stupidity. What did the expect?

15 : Anonymous2021/05/08 21:13 ID: gxff1v1

$200 million for their first-party catalogue? God of War apparently made $131 million in its first month alone, and that's just the digital sales. $200 million for their entire catalogue is insultingly low.

16 : Anonymous2021/05/08 16:51 ID: gxejekl

Hot Take: 2017 Epic games got lucky ass fuck with a last second pivot to turn their shitty ass “co-op save the planet” game into a PUBG copy. PUBG fumbled hard with glitches/performance issues/console ports and allowed Fortnite to dominate the new genre.

Because of this massive lucky break they’re way bigger and more powerful than they should be, and they’re headed toward a market correction.

Also my impression is that even Fortnite is losing popularity because people perceive it as too steep of a learning curve. Same thing happened with my favorite game, Starcraft 2. New players are intrigued, but then they see footage of veterans and they’re like “holy fuck, I could never do that, ima just go play something else.”

My opinion is I think Epic has definitely peaked, way higher than they ever “should” have, and they’re gonna go back to just being primarily an engine building company if even that.

Again, its just a hot take cuz I really don’t know what the fuck I’m talking about. This is just my casual opinion that I pulled out of my ass but it does feel accurate to me.

ID: gxepsav

If this does happen, it's gonna be a long time. While it is a pubg clone, it offers something that current battle royales don't offer - building. No other br offers this. The building aspect makes it so unique in that you can create your own cover. Also, it's asthetic is cartoony which is why it appeals so much to children. I would love to know what age range is the majority of the player base.

I agree that the learning curve is steep. I used to play when it first came out. I was pretty good as I am with most shooters. I once got 29 kills in a 50v50. Anyway, I stopped playing and went to Blackout(which I preferred). Months later, I tried playing a Fortnite match with a friend and omg all the shit they added to the game. Cars, airplanes, bouncy balls, fucking potions that instantly build a fort, and so much more. I got destroyed within the first few minutes.

17 : Anonymous2021/05/08 11:19 ID: gxdkvrz

I think this was for existing games, they didn't want them to go to Steam also but games like Horizon did, so I guess Sony didn't take the money.

18 : Anonymous2021/05/08 13:33 ID: gxdweaq

F Epic Games.


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