Epic Games paid more than $2 million to Phoenix Point developer Snapshot Games to secure a timed exclusive on its Epic Games Store.
In a thread on Resetera, a financier who supported the game on Fig – a platform that not only enables backers to financially kickstart a game, but also take a share in its profits – confirmed the game had already seen a 191 per cent return on investment (ROI) thanks to a “cash advance” raised by “Snapshot’s distribution agreement” with Epic Games.
“Snapshot’s distribution agreement has brought in significant resources and we are excited to share that this has benefitted investors in addition to raising the quality of the final game,” stated an email from Fig distributed to all investors. “Since the received cash advance contributes to the game’s revenue, it will be shared with investors as per our licensing agreement with Snapshot. Additionally, investment returns will continue to accrue with sales of the game.”
After reviewing the Form 1-K filings Fig made with the SEC for the years ending September 30, 2017 and 2018, ResetEra members worked out that to break even for investors, the game would have to generate sales of $588,235. To return at 191 per cent after Fig takes its own stake, the game would have to make $2,247,058—or $2.25m if you round it up.
The discussion thread led to further questions about what other kind of “advances” Epic might have made with even bigger studios and established franchises to secure EGS exclusivity.
A recent Phoenix Point Reddit AMA was dominated by criticisms and questions about the recently announced Epic Games Store exclusivity deal. Lead designer and X-Com creator Julian Gollop used the opportunity to defend the decision and clarify a few misconceptions, explaining that the deal with Epic allows the studio to commit more to the launch, as well as enabling it to support the game more immediately after launch. Ultimately, he says, it will result in “a better game”, and one that gets post-launch additions sooner.