Epic Games' strategy of offering free game giveaways has proven to be highly effective for attracting new users

Tim Sweeney, the head of Epic Games, has revealed that while their strategy of offering free games has proven beneficial for the company, numerous exclusivity contracts were not financially wise. In a recent communication with the press, CEO Sweeney acknowledged that although some exclusives for Epic Games Store (EGS) achieved notable success, several did not provide a good return on investment.

On the other hand, Sweeney praised the free games initiative, describing it as "magical" and cost-effective. Despite seeming initially illogical, he considers giving away games a savvy user acquisition strategy. Sweeney explained, as reported by PC Gamer, that acquiring users through free game offerings is about one-fourth the cost of using platforms like Facebook or Google ads.

He elaborated that, contrary to expectation, giving away games often boosts the sales of developers’ paid games on the platform due to the increased exposure their titles receive. This approach is so effective that developers frequently collaborate with Epic for timed free releases coinciding with new game launches to maximize awareness. Sweeney highlighted this tactic as the most economical part of their business.

Furthermore, Epic Games Store’s mobile launch took place last Friday, August 16. The company, known for Fortnite, has expanded its digital store to Android globally and plans to launch on iOS within the European Union, thanks to legislative changes by the Digital Markets Act that mandate Apple to permit third-party stores on its devices.