When I first heard about this, I thought there was a catch for sure because getting games completely for free and actually keeping games seemed too good to be true. But really the only catch I found was that I need the Epic Games launcher to play these games (I think there’s a way around this but I’m not sure).
They’ve been doing this for years now so clearly it’s benefiting them in some way, and I want to know how? And why aren’t other companies doing the same thing if it’s that successful?
In: Technology
So, the entire idea is for it to be a “loss leader.” A loss leader is something intentionally sold or given away at a loss, but it gets attention and gets people to browse your store. The idea being it gets them interested, so they’ll be more likely to shop there or buy more.
Costco does this with the rotisserie chickens. It and the meat department are at the back of the store. So, you have to pass by the entire stores aisles and contents to get there. They sell the chickens at a slight loss, but it gets you to walk all the way past stuff in the aisles. And there’s a good chance you’ll see a few things you wanna try or get on the way in or out.
EGS has been doing the same with the free games and exclusives on it. But the difference is that it isn’t working and hasn’t been for a long time. We’re talking about hundreds of millions of dollars annually funneled into a bottomless pit to try and claw market share from steam.
Part of the issue for them is that EGS was absolute dogshit to use for the first couple of years. No support forums for games, no shopping cart, no ability to gift games, etc. On top of data breeches of consumer info. Meanwhile, they’re spending 9 figure sums every year to try and get people to use their store. A store they can’t even be bothered to get working with features internet shopping had in 1995.
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