Epic Games is shaking things up for developers by letting them keep the first $1 million they make from their games. This is a significant shift in how platform fees usually work, especially for those just starting out. While this won’t completely change the landscape overnight, it’s a step in a direction that could have ripple effects across the industry.
For developers, especially indie teams and small studios, that first million can be the difference between getting a game off the ground and being stuck in the margins. Let’s break down what this actually means for devs and how it compares to the usual fee structures we see in the industry.
A New Approach to Revenue Sharing
Most major platforms take a percentage cut of every dollar a game makes. Typically, that slice hovers around 30 percent. Epic Games is bucking the trend by waiving that fee entirely for a game’s first $1 million in revenue. After that, the usual 12 percent cut kicks in.
This isn’t a blanket change for the entire industry, but it does set a new bar for what’s possible when it comes to platform fees. It’s a calculated risk by Epic, but one that could win over smaller developers who’ve been wary of those high upfront costs.
Implications for Indie Developers
For indie teams, that first $1 million can be the hardest to secure. It often represents the bulk of a game’s total earnings, especially if it’s a niche project. By letting developers keep it all, Epic is giving them more breathing room — a chance to invest back into their projects or even fund the next idea.
It’s also a signal to other platforms. Steam and console marketplaces have long operated on a 30 percent standard cut, but as more developers find success in alternative platforms, those old models might start to feel outdated.
Context Within the Gaming Industry
This move by Epic isn’t just about helping developers. It’s part of a larger trend of shifting power dynamics in the games market. As platforms look to secure exclusive titles and new partnerships, offering better financial terms becomes a lever they can pull.
Epic’s previous 12 percent revenue share already undercut the 30 percent norm, and this new policy pushes that further. It’s also likely to boost Epic’s profile as a developer-friendly alternative, even if that’s just a side effect of their own push for more content on their storefront.
Looking Ahead
It’ll be interesting to see how other major platforms respond, if at all. Developers are already vocal about wanting more equitable terms, and moves like this give them more leverage to push for change elsewhere. For now, though, Epic’s decision is a notable shift in how revenue is shared in gaming. It shows that the balance between platforms and creators isn’t fixed, and there’s still room for developers to demand — and maybe even expect — better deals for their work.
Gaming Strategist & Trend Analyst
With a background in game economics and digital culture, METAREPORT connects the dots. He dissects trends, deciphers strategies, and delivers data-backed insights for gamers, creators, and investors alike.
