Epic Picks Up Steam, Offering Games Online

Cary, N.C. — In a retail environment that's clearly focused on big-hit PC game franchises like The Sims and Command & Conquer, even proven franchises like Epic Games' "Unreal Tournament 3" cannot win shelf space for an extended period of time.

That's one reason why Epic, which is based in Cary, and so many game developers are turning to Valve's digital-distribution technology, Steam.

Valve, creators of the Half-Life franchise, which includes the recent hit, "The Orange Box," has accumulated over 15 million accounts around the globe over the years. Gamers can create a Steam account for free and then access it from any computer.

"Steam is a revolutionary technology that opens up an entirely new way to put our games into the hands of millions of PC gamers around the world," said Jay Wilbur, vice president of Epic. "Valve has changed the face of digital distribution for game developers, publishers and consumers, and we are thrilled to be a part of the Steam community."

Through March 24, Steam is offering 10 percent off the retail price of all Epic's games, including "Unreal Tournament 3" for $44.95. That game has already shipped 1 million units at retail. Gamers can also get all of Epic's games in the Unreal Deal Pack for $53.95, which includes "Unreal Gold," "Unreal II: The Awakening" and the "Unreal Tournament" games.

"Epic is a leading developer of game-engine technology and has produced some of my favorite games of all time," said Gabe Newell, president of Valve. "It's an honor to be working with them and offering their current and classic titles to the millions of Steam gamers around the world."

Epic is the latest company to join the digital distribution network, which also offers hit games like "BioShock," "Call of Duty 4" and "The Orange Box" directly to gamers, bypassing retail. Companies like Atari, 2K Games, THQ, Activision, Sega, Eidos, id Software, Majesco and Strategy First are all part of Steam.

With the advent of PlayStation 3's PlayStation Network Store, Xbox 360's Xbox Live Arcade, and Nintendo's Wii Virtual Console and Wii Shop Channel, console gamers are now able to download content directly to their hard drives. Over time, and as new consoles are released, digital distribution will become a major way for developers to connect directly to consumers, bypassing both publishers and retailers.

The early success that Sony, Microsoft and Nintendo have seen on the console side has already opened up new doors to developers. A game like Chair Entertainment's Undertow, which is powered by Unreal Engine 3, would never have seen the light of day if not for Xbox Live Arcade. These types of games can be made for a small budget and reach a dedicated gaming audience that's already connected by broadband.

Steam allows game companies a direct channel to gamers that's open 24 hours, allowing for digital purchases from anywhere in the world. These games never grow old online and shelf space is never an issue. Game creators can also offer their content for a lower cost via digital distribution, since there's no packaging or retail margins involved.

Moving forward, the PC business will see a larger piece of the pie coming from digital distribution. There will always be a place at retail for the big franchises, but outlets like Steam open up doors for anyone and give the big developers and the small companies equal placement that retailers simply don't have the space to provide.