Epic Games Store Enhances Developer Profit Retention with Latest Update

Epic Games has made significant adjustments to its revenue-sharing model, allowing developers to retain a larger portion of their game profits. This update, effective from June 2025, was initially announced in May and aims to attract more developers to the Epic Store by enhancing their financial incentives.

Under the revised policy, developers who launch games on the Epic Store will keep 100% of their revenue until their game surpasses the $1 million earnings mark. Once this threshold is crossed, the revenue distribution will revert to a standard model, where Epic retains 12% and developers receive 88% of the earnings.

Additionally, Epic Games has introduced a new ‘webshop’ initiative that enables developers to offer in-game purchases outside of apps, presenting a more budget-friendly option compared to traditional in-app purchases, which are typically burdened with high fees charged by big players like Apple and Google.

As a benefit, customers who make purchases through Epic Webshops will receive 5% in Epic Rewards on their transactions, adding further value for users engaging with the platform.

Comparison with Competitors

In contrast to Epic’s model, Steam, the dominant digital game distribution platform on PC, operates under a different revenue-sharing framework. Valve, the company behind Steam, typically takes a 30% cut of sales for games hosted on its platform.

Steam introduced a tiered revenue-sharing system in 2018, allowing developers to keep a larger share of their earnings as sales increase, with up to 80% available for titles grossing over $50 million.

It remains uncertain whether Epic’s revamped revenue model will be sufficient to draw more developers towards its storefront when compared to Steam. However, Epic has secured several high-profile exclusives, such as Remedy’s Alan Wake 2, which are not available on Steam. Additionally, titles like Rocket League and Fall Guys were removed from Steam following Epic’s acquisition of their developers, Psyonix and Mediatonic, in 2019 and 2021, respectively.

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