The CEO of Epic Games, Tim Sweeney, recently shared insights into the company’s innovative approach to user acquisition through its storefront. In a conversation with the press, as reported by PC Gamer, Sweeney revealed that Epic is investing approximately 25% of what it would typically spend on traditional advertising platforms like Facebook and Google to incentivize developers to offer their games for free. This strategy has proven effective in attracting new users to the Epic Games Store.
Strategic User Acquisition
“Giving away free games seems counterintuitive as a strategy, but companies spend money to acquire users into games,” Sweeney explained. By partnering with game developers and compensating them for the rights to distribute their titles at no cost to users, Epic is able to draw in new customers at a fraction of the cost associated with conventional advertising methods.
Interestingly, this approach does not negatively impact the sales of paid games on the Epic Games Store. In fact, developers who participate in the free games initiative often experience a notable increase in sales for their other titles. Sweeney noted that the heightened visibility generated by offering a free game can significantly boost awareness for upcoming releases. “Often, developers, when they’re about to launch a new game, come to us wanting to work closely on a timed release of a free game, just to drive user awareness of their next game,” he said. “That’s been an awesome thing. And it’s been by far the most cost-effective aspect of the Epic Games Store.”
However, not all aspects of Epic’s strategy have yielded positive results. Sweeney acknowledged that the company’s investment in exclusive titles has not always been fruitful. “We spent a lot of money on exclusives,” he admitted. “A few of them worked extremely well. A lot of them were not good investments, but the free games program has been just magical.” This candid reflection highlights the dynamic nature of the gaming industry and Epic’s commitment to exploring diverse avenues for growth and user engagement.
