The exchange of statements between Larian Studios, Epic Games, Remedy and Steam This has sparked one of the most uncomfortable debates in PC gaming today: to what extent do digital store exclusivity deals actually help studios or, conversely, limit their economic potential? The case of Alan wake 2, funded and published exclusively on PC by Epic Games Store, has become the perfect example to measure tensions.
In the midst of a European video game industry increasingly dependent on funding and visibility deals, the discussion is significant. What began as a public defense of Tim Sweeney The role of the Epic Games Store has ended with Larian openly criticizing exclusivity and pointing to Steam as the missing piece that allowed Alan Wake 2 to reach its full commercial potential.
The clash between Epic and Steam: Sweeney boasts of "healthy" competition
The final episode began when Tim Sweeney, CEO of Epic Games, again defended the work of his online store against SteamThrough X, he argued that the competition between both platforms It benefits both players and developers, as it expands options and forces better prices and agreements across the entire ecosystem.
According to Sweeney, when a game is offered Free for one week on the Epic Games StoreIt not only gains visibility on its platform; sales also skyrocket on other systems such as Xbox, PlayStation, Nintendo Switch, Steam, iOS or AndroidHe gave as an example the testimony of a freelance editor, who claimed to have achieved a 200% increase in sales on Steam after having participated in a free promotion in the Epic store.
Along those lines, the executive insisted that Epic and Steam compete for every user and every saleAnd that in some operations Epic wins and in many others Steam wins, but there is a common factor: Players and developers both win Having more alternatives and offers available. That, in his view, is the basis of healthy competition in the PC market.
To reinforce his story, Sweeney emphasized that Epic Games Store dedicates a significant portion of its resources to supporting studios already sustaining its policy of weekly free games. It even went so far as to take a veiled jab at other giants in the sector by stating that The money is reinvested in industry and not in “yachts and diamond teeth”suggesting that not all companies in the sector prioritize development support in the same way.
This discourse, which seeks to present itself as a defense of the developer and the player against the more conservative practices of other platforms, is precisely what has raised alarm bells in part of the industry, especially in European studios that have experienced firsthand the consequences of aggressive exclusivity agreements.
Larian enters the scene: direct criticism of Epic's exclusivity
Sweeney's words quickly generated reactions. One of the most notable came from Michael Douse, publishing director at Larian StudiosDouse, the European studio responsible for hits like Baldur's Gate 3, openly disagreed with the altruistic narrative that Epic is trying to project around its store, from his account on X.
Douse acknowledged that Epic Games fully funded Alan Wake 2But he questioned whether that support could be presented without nuance as a crusade in favor of developers when, in his opinion, the PC exclusivity via Epic Games Store prevented Remedy from taking advantage of Steam's enormous user baseAccording to him, that decision would have meant the potential loss of “hundreds of millions” in revenue.
The Larian executive emphasized that the financial strain that Remedy went through The game's release would highlight the true cost of abandoning Steam. Although Alan Wake 2 was very well received by critics, it took more than a year for it to start gaining traction. truly profitable titleThis is partly attributed to the fact that it was not present on Valve's platform, which was dominant in the European and global PC market.
For Douse, the problem is not competition between stores itself, but the tactic of closed exclusivity on PCHe asserted that there are "demonstrable cases" of games that They underperformed. precisely because they are tied to the Epic Games Store, which, from their perspective, undermines the message that everything is done in favor of the developers.
In his comments, Larian's publishing manager went further and questioned Epic's long-term strategyHe pointed out that the store's success depends largely on convert Fortnite's massive player base into premium game buyersSomething that, according to him, is still not clearly visible. This mismatch between users accustomed to free-to-play and the sale of premium experiences is, for Larian, a structural problem.
From Fortnite to premium games: the question surrounding Epic's model
From there, Douse linked the debate to the overall state of the digital market. He compared the situation of the Epic Games Store with what happened in the Apple and Google app storeswhere years of dominance of the free-to-play model have ended devaluing paid games until it becomes very difficult to sell premium offerings without them ending up being discounted or diluted in the ecosystem.
In your opinion, Offering free games on a massive scale can inflate the figures of users and downloads, but it doesn't necessarily create a sustainable digital store to sell high-budget titles and solo campaigns. The key, according to Larian, is not to give away more, but to build a space where players are willing to pay a fair price for quality experiences, something that Steam continues to represent for a large part of the PC community in Europe.
Douse also pointed out that, even in scenarios where Epic accepted a reduced percentage of sales revenue on SteamStudios like Remedy could have recouped development costs more quickly and, in the long run, generate additional benefitsFrom that perspective, strict exclusivity is perceived as too great a sacrifice in exchange for funding that, although vital, comes with complicated costs.
The Alan Wake 2 case thus becomes a kind of warning for other European studios considering signing similar agreements. The initial financial injection can save a projectHowever, if in exchange the platform with the largest installed base is abandoned, the balance may tip towards a scenario of prolonged financial pressure.
This reading clashes head-on with Sweeney's view, who insists that The Epic Games Store acts as a visibility engine whose benefits extend even to rival platforms. A gap opens between these two positions, reflecting deeper tensions over who sets the rules in the PC market and to what extent exclusivity agreements are feasible for independent studios and European AAs.
Remedy breaks its silence and comes to the defense of Epic Games
In the midst of this exchange, Remedy EntertainmentThe Finnish studio responsible for Alan Wake 2 decided to intervene to give their side of the story. Through their official account on Xbox, the company was unequivocal: “There would have been no Alan Wake 2 without Epic Publishing”A brief message, but one that dismantles the idea that the game could have been financed without Epic's involvement.
Remedy explained that the The publishing deal with Epic was fair. And that, far from being an endless negotiation, it was finalized in a matter of months. According to the study, these contracts are usually complex and can last up to a year, but in this case everything was resolved relatively quickly, which allowed secure funding and kick-start development without jeopardizing the stability of the team.
Epic's role wasn't limited to providing funding for production. Remedy explains that the publisher It also assumed the marketing costsMarketing is one of the most expensive and delicate aspects of any high-profile release. This includes advertising campaigns, event presence, and communication efforts, which are typically a risk borne by the developer or a traditional publisher.
In that sense, Tim Sweeney's company absorbed risks that are not usual in all publishing agreements. It was precisely this, according to Remedy, that made it possible to carry out a project of the magnitude of Alan Wake 2 without severely compromising its short-term finances, something especially sensitive for a mid-sized European studio.
Remedy admitted that Not all financing and exclusivity agreements are equally fair. for developers, and acknowledged that the market is plagued by unbalanced contracts. However, he insisted that, in his specific case, the deal with Epic was satisfactory and that, despite all the criticism, they consider Epic Games “an excellent partner, with or without Steam”This statement qualifies the narrative that the study would necessarily have fared better with a different type of agreement.
Profitability, exclusivity, and an uncertain future for European studios
Despite Remedy's public support, the numbers have fueled the controversy. Alan Wake 2 took more than a year It took a long time for a title with so much media recognition and Game of the Year nominations to start generating clear profits. The improvements in profitability were perceived as slow and progressive, far from the immediate impact that many expected from a blockbuster.
This situation was compounded by the poor performance of FBC: FirebreakRemedy's first multiplayer game, whose sales figures were considered disastrous. Although not directly related to the exclusivity of Alan Wake 2, that setback worsened the Financial pressure on the studyThis contributed to the discussion about the agreement with Epic gaining even more visibility in the European environment.
One of the big unknowns surrounding this case is whether Alan Wake 2 would have performed better had it also been released on SteamUnlike other titles with timed exclusivity—such as Witchfire, which after a limited period on Epic ended up arriving on Steam—Remedy's agreement includes a complete exclusivity on PC, without a back window in the Valve store.
Some analysts suggest that, had a hybrid model been chosen—for example, a Limited time exclusivity on Epic followed by a later release on Steam—the revenue curve would have been different. However, the terms agreed upon with Epic were specific and, for now, prevent us from verifying how that alternative scenario would have worked.
All of this has reignited a debate that particularly affects European studios that aspire to big-budget projectsThe combination of external funding, exclusivity, and revenue sharing is now a central element in the planning of any ambitious release, and cases like Alan Wake 2 serve as examples. reference —and warning— for other developers who are looking for partners without losing control over their commercial reach.
While some see Epic as a fundamental support for successfully launching risky games, others, like Larian, believe that disappear from Steam during launch This implies giving up the main gateway for the PC audience, especially in key markets like Spain or the rest of Europe, where Valve's store remains the benchmark platform.
The discussion between Larian, Epic, Remedy and Steam It reveals the two sides of the same coin: on the one hand, the need for funding and shared risk for projects like Alan Wake 2 to exist; on the other, the reality that the Strict PC exclusivity agreements may limit commercial reach even for highly rated games. In an increasingly competitive market, the balance between visibility, distribution freedom, and economic sustainability remains fragile, and all indications are that the next major European releases will be looking to this for guidance before signing their next big deal.
