Epic Games Targets Next-Gen Xbox with Expanded Store Strategy

TIG SEA3 hours ago

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Epic Games Prepares for Next-Gen Xbox Expansion

While Steam continues to dominate the PC gaming landscape, Epic Games Store has proven it is a serious contender. Steve Allison, Vice President and General Manager of Epic Games, revealed that the company is negotiating with Microsoft to bring Epic Games Store to the next-generation Xbox. If approved, players can expect a dedicated app that enhances cross-platform gaming and makes library management more seamless.

Strong Growth Despite Industry Slowdown

Epic Games’ 2025 annual report highlights remarkable growth. Spending on third-party games reached $400 million, a 57% increase from the previous year. PC users exceeded 317 million, with monthly active users hitting a record 78 million in December 2025. These numbers challenge earlier skepticism that Epic’s audience primarily sought free games.

Launcher Overhaul to Improve Performance

Allison openly admitted that the current Epic Games Launcher struggles with performance and resource usage, describing it as “built on fragile foundations.” Engineers have rebuilt the infrastructure since late 2025, with an upgraded version expected by May–June 2026, promising smoother library access and faster load times.

Marketing Strategy: Free Games

Epic Games continues its aggressive free game campaigns, distributing over 100 titles in 2025 alone, claimed more than 662 million times. Surprisingly, these campaigns have not cannibalized sales on other platforms; instead, they create a “Halo Effect,” boosting Steam player engagement by up to 40% during giveaway periods.

Developer-Friendly Revenue Model

Another key strength is Epic’s revenue-sharing model. Since June 2025, developers earn 100% of the first $1 million in net revenue per year, before transitioning to the standard 88/12 split. This approach supports smaller studios amid rising development costs and positions Epic as a highly attractive platform for new and established developers alike.

Expanding Across Platforms

Epic Games aims not to replace Steam but to provide accessible and sustainable alternatives across devices, including PC, laptops, and mobile on iOS and Android. Entering the next-generation Xbox represents a strategic move that could redefine gaming ecosystems, enabling platform choice beyond traditional boundaries.

Source: WindowsCentral