Epic Games is once again turning heads with its developer-first approach—this time by eliminating fees entirely for the first $1 million in annual sales per game.
After six years of undercutting Steam’s 30% revenue cut with its more developer-friendly 12% model, Epic Games is doubling down. Starting in June, the Epic Games Store will waive all platform fees for the first $1 million in annual revenue for each game published on its store. Once that threshold is crossed, the usual 12% fee will kick in.
A Major Win for Small and Indie Developers
The new structure is a bold attempt to strengthen Epic’s appeal to indie developers and smaller studios, offering them a much-needed revenue cushion. This mirrors Epic’s long-standing support for creators, dating back to 2011 when it first waived royalty payments on the initial $50,000 in sales using the Unreal Development Kit. By 2020, that grace period expanded to $1 million in lifetime sales for projects using Unreal Engine.
Unlike Valve, whose Steam platform reduces its 30% cut only after a title generates over $10 million and then again at $50 million, Epic is flipping the script. Its strategy is focused on empowering the “little guy” rather than catering to high-earning juggernauts.
Epic CEO Tim Sweeney has long criticized Valve’s tiered system, calling it a “backroom deal” setup that benefits the rich while leaving smaller developers behind. His stance, made public during Epic’s legal battle with Apple, continues to shape the company’s disruptive philosophy.
Opening the Floodgates
Epic’s fee change comes on the heels of its 2023 shift to open self-publishing. Previously, the store was hand-curated, prioritizing exclusives and big names. Now, it’s welcoming a flood of smaller titles, including quirky indies like Fell in Love with Coser 4 and Vacation Adventures: Park Ranger 17 Collectors Edition.
Can Epic Close the Gap?
Even with aggressive spending and developer incentives, Epic has a long road ahead. The Epic Games Store brought in over $1 billion in customer spending in 2024—a respectable figure but dwarfed by Steam’s estimated $10.8 billion that same year.
Originally aiming to claim 35–50% of the PC gaming market by 2024, Epic remains far from that goal. Still, the new revenue model signals that the company is playing the long game, continuing to prioritize ecosystem growth over short-term profits.
Conclusion
Epic’s latest move isn’t just another shot at Steam—it’s a clear message: developers, especially smaller ones, deserve better terms. As the digital storefront war rages on, players and creators alike will be watching to see whether Steam will finally feel the pressure to respond.
