Alan Wake 2 Developer Defends Epic Games Exclusivity Deal

Remedy Entertainment has publicly defended its publishing agreement for Alan Wake 2, which launched exclusively on the Epic Games Store in October 2023. More than two years after release, the game remains unavailable on rival platform Steam, prompting industry-wide discussion about storefront exclusivity and its impact on developer revenue.

The debate intensified when industry figures questioned whether the exclusivity deal may have cost Remedy significant sales, despite Epic Games fully funding the project's development. Remedy maintains that the partnership was essential for the game's existence and remains fair to the studio.

The conversation began when Michael Douse, director of publishing at Larian Studios, shared a critical perspective on social media regarding Epic Games' storefront strategy. Douse questioned the financial wisdom of the exclusivity arrangement, suggesting that Remedy may have faced financial challenges due to the game's absence from Steam's larger user base.

I understand Epic entirely funded Alan Wake 2 but this altruistic pro-developer talk doesn't sit well when Remedy seemingly went into financial crisis because they couldn't tap Steam for AW2 sales suffering potentially hundreds of millions in lost revenue.

Douse's comments came in response to a post by Tim Sweeney, Epic Games' CEO, who argued that competition between storefronts benefits both gamers and developers. Sweeney stated that while Epic and Steam compete for each sale, the constant is that "gamers and developers win by having more options and better deals."

The discussion highlighted the tension between development funding and market reach. Douse noted that while Epic's funding made Alan Wake 2 possible, the exclusivity may have limited the game's commercial potential, particularly given Steam's larger PC gaming audience.

Following Douse's viral thread, Remedy Entertainment directly addressed the criticism with a clear statement defending its partnership with Epic Games. The studio emphasized that Alan Wake 2 would not exist without Epic's financial backing and publishing support.

Hi. There would be no Alan Wake 2 without Epic Publishing. The publishing deal with Epic was very fair to Remedy. While these complex deals can often take even a year to reach their conclusions, and may not always be fair to the developer, this one was. And it only took months to get done. Epic Games was, and is, an excellent partner to us. Steam or no Steam.

Remedy's response underscores a fundamental reality in game development: publishing deals often determine which projects move forward. The studio noted that while some development agreements can take up to a year to finalize, their arrangement with Epic was completed in months and remained favorable to the developer.

The statement also implicitly acknowledged the industry-wide challenge of securing funding for ambitious projects, particularly those with complex development cycles and high production values.

Despite the exclusivity debate, Alan Wake 2 achieved significant commercial milestones. The game surpassed 2 million sales within its first year of release, a threshold that triggered royalty payments to Remedy. However, the studio noted that it took approximately one year after launch for these royalties to begin flowing.

This timeline illustrates the financial realities of game development, where studios often wait months or years to recoup initial investments and begin earning profits. The exclusivity arrangement with Epic Games provided the necessary capital to complete development, but also meant that sales revenue was concentrated through a single platform.

The 2 million sales figure represents a solid performance for a narrative-driven survival horror game, though industry analysts have speculated that simultaneous release on Steam could have potentially doubled or tripled that number given Steam's larger PC gaming audience.

The debate extends beyond Alan Wake 2 to broader questions about Epic Games' approach to building its PC storefront. Douse expressed skepticism about Epic's strategy of converting Fortnite players into buyers of premium PC games through free game giveaways.

Their ability to convert hundreds of millions of Fortnite players into mid-hardcore premium gamers, tempted by giveaways of free PC titles. I don't see the Fortnite brand attempting to do that.

Douse drew parallels with mobile app stores, noting that a decade of devaluing games through low prices and free-to-play models has made it challenging to sell premium experiences at full price. He suggested that while free giveaways boost user numbers, they may not create a sustainable ecosystem for premium game sales.

Despite these concerns, Epic Games continues to pursue its strategy of securing exclusive titles and offering free games to build its user base, positioning itself as a competitor to Steam's market dominance.

While Alan Wake 2 remains exclusive to the Epic Games Store, Remedy Entertainment has already charted a different course for its next major project. The studio has entered into a partnership with Annapurna Pictures for Control Resonant, the sequel to their 2019 title Control.

This new arrangement represents a hybrid approach to game funding and media expansion. Annapurna Pictures will fund 50% of the development costs for Control Resonant, while simultaneously developing film and television adaptations of both Control and Alan Wake properties.

The partnership demonstrates how game studios are increasingly exploring alternative publishing models beyond traditional exclusivity deals, potentially balancing creative independence with financial support while expanding intellectual properties across multiple media formats.

The Alan Wake 2 exclusivity debate highlights the complex trade-offs in modern game development, where funding and market reach often exist in tension. Remedy's defense of its Epic Games partnership underscores that without such deals, ambitious projects may never reach completion.

Meanwhile, the industry discussion reflects ongoing questions about storefront competition, developer economics, and whether exclusive arrangements ultimately serve or hinder creative projects. As Remedy moves forward with new partnership models, the gaming community will be watching to see how these evolving business relationships shape future game development.

The conversation also reveals how social media has become an essential platform for industry professionals to debate business practices, with developers and publishers now engaging directly in public discussions about game development economics.