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Thursday, August 29, 2019

Ubisoft believes Steam's business model is unsustainable and outdated


Will Ubisoft's slow move away from Steam in favor of the Epic Games Store make Valve think about his business model?

We have already written extensively and extensively about the diverse family of launchers available on PC today. If you have been reading, you know the situation. For example, Valve and GOG take 30% of the cakes, Epic 12% of game sales, and there are those who sell their own games exclusively on their own launchers. The models for attracting customers are equally colorful. Some do this with the help of exclusives, others offer subscription models and the like.

In the light of all of the above, it is always interesting to hear what well-known companies think about their competitors and what their predictions are for the future of the industry. So, one of the leaders at Ubisoft, Chris Early, commented on Steam's business and called it, unrealistic, unsustainable and obsolete. Early believes that Steam is not keeping pace with the times and that its business model does not reflect the state of the industry.

Although it did not indicate exactly what part of their business they are referring to, the comment probably refers to the profit margin mentioned above. Ubisoft sells all of its games through Uplay, and has been stepping into Steam in favor of the Epic Games Store lately. The first example of this is The Division 2, and the same will be the case with the upcoming Ghost Recon: Breakpoint. Ubisoft is thus secured on two fronts. Epic takes less, and if someone boycotts the same and wants a game - they'll rush to Uplay in which Ubisoft is 100% profitable.

Ubisoft is a big player in the gaming industry, so many wonder if its move away from Steam will make it think about changing its business model. Until that happens, Epic will continue to grab exclusives, at least according to Tim Sweeny, and we can probably expect another new launcher to look forward to it for the foreseeable future.

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