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Paradox's Wester says 70/30 revenue share status quo is "outrageous"

Paradox's Wester says 70/30 revenue share status quo is "outrageous"

Swedish games developer and publisher Paradox Interactive has laid its teeth into companies still insisting on a 70/30 revenue share.

As reported by GamesIndustry.bizthe company's executive chairman and former CEO Fredrik Wester put the boot into companies including Valve, Apple and Microsoft at Gamelab in Barcelona last week, saying that giving almost a third of your revenue to a platform was ridiculous.

"I think the 70/30 revenue split is outrageous," he told attendees.

"I think the platform holders are taking too much money. Everyone in the press here, just quote me on that."

The exec went on to say that this split of proceeds is based on an outdated business model which Warner Bros came up with back in the 1970s.

"That was physical. It cost a lot of money," he said.

"This doesn't cost anything. So Epic has done a great job for the whole industry, because you get 88 per cent. Fantastic move. Thank you very much."

Wester said that Epic is doing a good job in disrupting the market and is making life easier for more recently-established studios.

"I think it is, especially for new developers," he said.

"They have lower margins, to get into the market. But I think it's also a matter of decency. I mean, how much does it actually cost to deliver a game?

"When the competition is low, the platform holder can get a big share of the pie; as competition increases, they need to lower their part of the pie, as well. That's how the market works, right?"

Responding to criticism about its policy towards exclusives, Epic CEO Tim Sweeney said that the point was to disrupt the status quo and that the strategy is working well


Editor - PC Games Insider

Alex Calvin launched PCGamesInsider.biz in August 2017 and has been its editor since. Prior to this, he was deputy editor at UK based games trade paper MCV and content editor for marketing and events for London Games Festival 2017. His work has also appeared in Eurogamer, The Observer, Kotaku UK, Esquire UK and Develop.

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