David vs Goliath?- not so fast...
Cisco Maldonado
Marketing, Strategy, and Brand Executive | Team Builder | Story Teller
Legends are made when the little guy comes out on top- but what happens when another big kid moves into the neighborhood?
The classic tale of the underdog; it makes for a great story and it is something most people can relate to. In the 'big guy vs little guy' scenario, we often find ourselves rooting for the unlikely victor because we feel a sense justice after everything has played out; and the 300 pound gorilla is given a wake up call. In the PC video game space, the current leader in the space is Steam- a platform that allows smaller game developers to publish and market their games direct to the consumer and bypass the often daunting machine of established studios, retailers, etc.
Valve, which owns and operates the Steam web/store front has enjoyed a virtual monopoly for a while, much to the dismay of the smaller developers who have increasingly felt the pinch of smaller margins and more restrictive rules over time. Enter Epic Games- yes, that Epic Games...the folks behind Fortnite. Epic has recently set up their own store to rival Steam, and has the deep pockets to entice developers to offer their games on that platform.
In a recent article- The Verge gives a birds eye view of the current state of affairs- but if you want the quick version, here are the main take-aways:
- The Epic Store already has the beginnings of a good UX, and is carving a niche in the PC market that says "we don't list sub-par games"
- There is the critique that Epic is fragmenting the PC games marketplace... but in my opinion, PC gamers are willing to make a few extra clicks to get their game... if it is a quality title.
- There is a hidden competitor ‘out there’ waiting to see which competitor will be the first to blink and will slide into a comfortable #2 player in the space for the immediate future.
This type of thing has happened before... I saw the same phenomenon in the home entertainment space a few years back when a large retailer kept pushing the studios and squeezing margins... making the environment ripe for a certain online retailer to disrupt the industry and steal share. As in any war…the 'winners' were the defense contractors (studios) who were able to provide compelling product to both sides at the same time.