Epic Games entered a stagnant market with its PC-games digital storefront in 2018, in the context of incumbent competitors such as Steam, its meteoric rise via Fortnite, and imminent industry shifts in gaming distribution. On the surface, Epic Games Store’s competitive advantage was its revenue-sharing policy that was more generous to developers. Early successes revealed Epic Games’ potential as a new distribution platform. After serving two sides of a market exceptionally well – game developers through Unreal Engine and individual users through hit-games such as Fortnite – could Epic Games become a PC-games distribution platform in the rapidly-changing video games industry?
Keywords: industry analysis; Video Games; platforms; Comparative Advantage; growth strategy; innovation focused strategy; Pricing strategy; Strategy; Competition; Growth and Development Strategy; Innovation Strategy; Games, Gaming, and Gambling; Technology Industry;
Citation:
Wu, Andy, and Christopher Zhang. "Epic Games." Harvard Business School Case 720-380, October 2019. (Revised October 2019.) View Details
