Epic Games’ new revenue sharing model gives developers 100% of first $1M earnings and introduces cost-saving webshop alternatives
Epic’s New Revenue Sharing Structure
Epic Games has fundamentally restructured its revenue distribution framework to provide substantial financial benefits for game creators launching titles through their digital marketplace. This strategic overhaul positions the Epic Games Store as a more developer-friendly alternative in the competitive digital distribution landscape.
The cornerstone of this updated program, which became operational in June 2025 after being announced the previous month, enables development studios to retain complete ownership of all revenue generated by their games until reaching a clearly defined earnings threshold. This approach significantly lowers the barrier to profitability for emerging studios and indie developers working with limited budgets.
Specifically, any development team publishing a game on the platform after June 2025 becomes entirely exempt from revenue sharing obligations to Epic Games for the initial $1 million in earnings. Once a title surpasses this financial milestone, the revenue distribution automatically transitions to Epic’s established 88%/12% split, which remains considerably more favorable than industry standards.
The Webshop Alternative to App Stores
Complementing the revised revenue model, Epic introduced an innovative webshop initiative that empowers developers to implement out-of-app purchase mechanisms directly from their own digital storefronts. This system provides a financially efficient alternative to traditional in-app purchase systems dominated by major platform holders.
Epic positions this service as a cost-effective solution that circumvents what they describe as excessive fees charged by Apple, Google, and other platform operators. For developers, this means retaining more revenue from each transaction while maintaining seamless integration with the Epic ecosystem.
As an additional incentive, players making purchases through Epic Webshops receive 5% Epic Rewards on all transactions, creating a compelling value proposition for both developers and consumers. This dual-benefit approach addresses two critical pain points: developer revenue retention and player engagement enhancement.
Practical Tip: Developers should integrate webshop functionality during the pre-launch phase to maximize early revenue potential. The system works particularly well for games with planned downloadable content, seasonal passes, or cosmetic item stores where recurring purchases are anticipated.
Steam’s Revenue Model vs Epic’s Approach
Valve’s Steam platform, maintaining its position as the dominant PC digital games marketplace, operates under a distinctly different revenue allocation framework. The standard arrangement involves Valve collecting a 30% commission on all game sales transacted through their storefront.
In 2018, the creators of Half-Life implemented a graduated revenue distribution system that rewards commercial success. This tiered approach permits developers to keep progressively larger portions of their game’s earnings as revenue milestones are achieved, culminating in an 80% retention rate for titles generating over $50 million in revenue.
The crucial question remains whether Epic’s refreshed strategy will successfully persuade additional developers to select their storefront instead of Steam. Epic already maintains an impressive portfolio of high-profile exclusive titles unavailable on competing platforms, including Remedy’s critically acclaimed Alan Wake 2.
Similarly, popular games like Rocket League and Fall Guys, originally accessible on Steam, were withdrawn following Epic’s acquisitions of their respective developers, Psyonix in 2019 and Mediatonic in 2021. This exclusivity strategy demonstrates Epic’s commitment to building a compelling content library that differentiates their platform from competitors.
Common Mistake to Avoid: Don’t assume Steam’s larger user base automatically translates to better revenue. For games projected to earn under $1 million, Epic’s model provides substantially better financial returns, while Steam’s tiered system only benefits exceptionally high-earning titles.
Strategic Considerations for Developers
When evaluating platform distribution strategies, developers should conduct thorough financial projections based on realistic revenue expectations. The optimal choice between Epic and Steam varies significantly depending on your game’s anticipated performance, target audience, and monetization approach.
Optimization Strategy: Consider launching on Epic initially to maximize revenue during the crucial first $1 million earnings period, then expanding to Steam once your title establishes market traction. This hybrid approach leverages the strengths of both platforms while minimizing commission payments during the most financially vulnerable launch phase.
For games featuring substantial post-launch content plans, Epic’s webshop system provides ongoing revenue advantages, especially when combined with their rewards program that encourages repeat purchases. The 5% player reward effectively functions as a customer retention tool while costing developers nothing additional.
Developers should also factor in platform-specific audience demographics. While Steam boasts a larger overall user base, Epic’s audience may be more receptive to certain game genres, particularly those benefiting from the Unreal Engine ecosystem or appealing to Fortnite’s substantial player community.
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