Matt Piscatella: the launch of the Epic Games Store could lead to a drop in revenue of the digital PC segment
The launch of the Epic Games Store led to a decline in sales on all PC platforms, including Steam. This was stated by NPD Group analyst Mat Piscatella.
Last week, a report was published by the Association of Software and Game Manufacturers (ESA) and the NPD Group on the state of the gaming market. Analysts have recorded both an overall turnover growth of 2% and a drop in the digital PC segment. According to Piscatella, desktop gamers were repelled by the “great war” of the Epic Games Store and Steam. And here’s why.
Before the release of EGS, Steam had an undisputed leadership in the PC platform market. It was assumed that thanks to the epic store, the competitiveness of this market would grow. In this case, consumer spending would also increase.
In reality, according to Piscatella, everything turned out the other way around. The aggressive competition between the two sites has alienated some PC gamers. They either switched to consoles, or simply cut their costs on PC platforms. The market turmoil that prevailed last year created a problem for the entire desktop ecosystem, the analyst is sure.
The great PC distribution platform wars of 2019 did not do consumer spending on PC content any favors btw. Priorities of enhancing consumer experience & choice and minimizing confusion were all deemphasized in 2019, contributing to lower overall consumer spend on PC content.
— Mat Piscatella (@MatPiscatella) January 23, 2020″The great wars of PC distribution platforms did not contribute to the growth of consumer spending on PC content.
In 2019, two priorities were overlooked: expanding the user experience and the need to reduce confusion (in the market). That’s why overall consumer spending on PC software has decreased.”
However, there is another explanation. 2020 will be the year of a new generation of consoles. In its run-up, according to the portal DualShockers, gamers could allocate more funds for console gaming to the detriment of the desktop.
There were also advantages to the competition between Epic Game Store and Steam. The last of them, for example, introduced a number of innovations over the year — obviously trying to preserve the user base.
EGS is also doing well: a recent report shows 108 million PC users and $680 million in revenue received by the store in its first year of operation. Recall that the store poached some of the games from Steam, making them its temporary exclusives. Among the most high—profile cases are the departure of Metro Exodus and The Division 2, as well as the scandal over the indie game Ooblets.
Also on the topic:
