Epic’s New Strategy Raises the Stakes. But Can It Match Web3’s Promise?
Epic Games has just redrawn the map of game distribution. With over $2.1 billion paid out to developers, 40 million mobile installs, and a projection to hit 70 million by end of 2025, Epic’s reach is growing. But it’s the economic shift that steals the spotlight: developers now earn 100% of revenue on their first $1 million in sales, followed by an 88/12 split thereafter.
Sami Chlagou, CEO at Cross The Ages notes:
“After a tough but victorious battle against Apple, Tim Sweeney is shaking up the rules again — opening up the market and making it much more accessible. It’s a great move! Everyone should have the chance to publish their games without giving up revenue during the launch phase. Other platforms will have to follow suit to stay competitive.”
A Game-Changer for Developers
This isn’t just generosity. It’s strategy. Epic is making the loud statement that creators deserve more, especially early in their journey. For indie developers, this is a major shift that could fund growth, marketing, or even the next project. And with tighter margins, studios can reinvest more directly into building great games, not just pleasing platforms.
Steam Can’t Ignore This
Steam’s longstanding 70/30 revenue split suddenly looks outdated. Epic’s move puts public pressure on Valve to respond, or risk losing goodwill from developers and gamers alike. The competition is good for everyone. Lower platform fees mean better deals for players and higher margins for creators. We’re now entering a phase where platforms must compete not only on audience size, but also on the value they bring to the ecosystem.
Mike Sorrenti CEO at GAME PILL adds: “Epic’s new revenue share agreement is a step in the right direction — giving developers the first million in revenue unfettered is meaningful. But while it’s a win for devs, Epic still lacks the reach and daily engagement that platforms like Steam command. To truly compete, Epic needs to double down on indie discoverability, smarter distribution, and continued support for creators. In today’s climate, with rising pressure from AI disruption and tighter funding markets, developers need not just better rev share — they need real ecosystem support.”
How This Impacts Web3 Distribution
Epic’s move could slow the migration of developers to Web3-native launchers — especially those not yet committed to blockchain’s long-term vision. If Web2 platforms become more dev-friendly, the short-term incentive to explore decentralized distribution weakens.
But here’s the twist: Web3 was never just about revenue share.
As JacobC.eth, CEO at HyperPlay, puts it:
“Revenue share is just one variable. Real value comes from developer sovereignty, open infrastructure, and permissionless innovation.”
Daniel Tamas, CEO at WAM also highlights:
“Epic’s 88/12 split is a step forward, no doubt. But distribution is just the beginning. The real edge is composability. When users can bring their identity, assets, and social graph across games, they don’t just play — they build. They remix. They invest. And so do developers.”
What Epic Still Can’t Offer
Epic’s updated revenue model is significant, but it doesn’t address the deeper issues that Web3 platforms were designed to solve — issues of openness, player ownership, and developer autonomy.
This is where Web3-native ecosystems diverge. Instead of operating as closed platforms, they enable:
- Censorship-resistant distribution: Developers can publish freely without fear of being delisted for integrating NFTs, wallets, or token economies.
- Wallet interoperability and monetization: Seamless, real-time economic interactions that extend beyond one game or platform.
- Permissionless extensibility and on-chain identity: Assets, achievements, and reputation follow the player, building cumulative value across experiences.
Sebastien Borget (COO, The Sandbox) summarizes it well:
“Epic still lacks cross-game marketplaces and liquidity, limiting players’ ability to freely trade their assets. More critically, a player’s achievements and progress across different games remain siloed, offering no cumulative reputation or meaningful advantages within the broader ecosystem.”
Some Web3 platforms are exploring innovative ways to introduce players to blockchain mechanics through smart contract-powered quests and rewards, transforming launchers into community-building tools rather than static storefronts. These integrated systems turn engagement into value — for both players and developers.
Conclusion
Epic’s new revenue share policy is a win for developers and a bold step in modernizing digital game distribution. It will spark positive pressure across the Web2 ecosystem and support a broader democratization of publishing.
But Web3 doesn’t just compete on economics. It reimagines the infrastructure of gaming itself — one where players are owners, progress is portable, and developers build in open, permissionless environments.
The future of game distribution isn’t one-sided. It’s collaborative, composable, and open. Epic may have raised the stakes — but Web3 is still rewriting the rules.
