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How Epic Spends Millions on Free Games—and What It Gets in Return

Epic says free games bring new users to its store, but its approximate $20 million budget and reported results do not reveal a complete return-on-investment calculation.
WorldReturn Length4 min Posted Quest giverVGSources Team
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Epic treats free games as a customer-acquisition investment: it pays developers for temporary rights to offer selected games at no cost, aiming to bring players into the Epic Games Store and introduce them to other games there. In a 2026 interview, Epic Games Store vice president and general manager Steve Allison said the budget generally hovers around $20 million, but changes with the opportunities available. That is an executive-reported estimate, not a published, audited annual allocation.

Why does Epic give away free games?

The free-games program is a marketing channel, not an accidental giveaway. Epic says it can put money that might otherwise go to large advertising platforms toward payments to developers in exchange for permission to distribute selected games free for a limited period. The goal is to attract new users to the store; once there, players may discover and buy other games.

Epic CEO Tim Sweeney called the program the store’s most cost-effective marketing activity and said free offers can raise awareness and support paid-game sales for participating developers. He has also compared the approach favorably with advertising on Facebook and Google. The available statements do not include an independent, like-for-like calculation of acquisition costs, however, so that comparison remains Epic’s assessment rather than a verified industry-wide result. PC Gamer’s report on documents released during the Epic–Apple legal dispute recounts Sweeney’s comments and early program spending.

How much does Epic spend on free games?

Allison said in 2026 that the budget “kind of hovers around the $20 million mark,” while moving up or down depending on opportunity. The remark describes a general budget scale; it does not establish a fixed annual appropriation or disclose how the money is divided among games.

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That figure should not be confused with the program’s early spending. The same PC Gamer report says documents showed $11.6 million spent during the first nine months after the program began with the store’s launch in late 2018. That is a historical figure for the opening period, not a current yearly budget.

Epic has not disclosed the present payment for each game, the contract terms, or a detailed allocation method in the sources cited here. It would be misleading to divide the approximate overall budget by the number of offers and treat the result as a per-game fee: the sources do not establish that spending is evenly distributed or that every offer has the same terms.

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  • If you play Fortnite experiences on a console device, you need to link your Epic Games account to your console account(s) so items purchased at Fortnite.com/item-shop appear across all of your linked accounts
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What does Epic say the program brings in?

Allison said the free-games program brings in 7–12 million users a year, and that 16–18% of new users acquired through it convert into paying users. He added that some cases reach the mid-20s or 30s, but the interview does not define those cases or their denominators. These are executive-reported figures; the interview does not provide an audited count, cohort methodology, or independent conversion analysis. A conversion figure also does not mean every person who claims a free game becomes a customer.

Epic’s 2025 year-in-review reported 662 million free-game claims across 100 games. The company said more than 77% of the games offered reached an all-time peak in concurrent users on the Epic Games Store during their free-offer week. These figures describe claims and activity during the offer window; they do not show how many people played each game, remained active afterward, or made a purchase.

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  • Gift card must be redeemed at EpicGames.com/redeem. This gift card WILL NOT work if redeemed directly on a console device (PlayStation, Xbox, Nintendo Switch, etc.)
  • If you play Fortnite experiences on a console device, you need to link your Epic Games account to your console account(s) so items purchased at Fortnite.com/item-shop appear across all of your linked accounts
  • Requires internet connection, valid Epic account and prior acceptance of the terms
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Epic also reported a 40% increase in concurrent users on Steam while the relevant title was free on Epic, describing this as a “halo effect.” That is a company-reported result, not proof that every giveaway produces the same effect or that the offer alone caused the increase. Epic’s 2025 year-in-review contains the company’s offer and engagement figures.

Do developers benefit from the giveaways?

Epic says developers receive payment and additional attention for their games. Sweeney has said that free offers can raise awareness and help paid-game sales, but the statements cited here do not establish a uniform sales lift or a typical outcome for every participating developer. Without disclosed per-game payments, contract terms, and comparable sales results, the overall benefit cannot be calculated from the published figures alone.

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One historical example illustrates the scale a prominent offer can reach, but should not be treated as typical: Sweeney said the Subnautica giveaway brought Epic 4.5 million users in 2019. That was his account of one game’s result, not a standard acquisition figure for each free title. Sweeney’s 2019 explanation of the program describes the original approach and cites that example.

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Does Epic’s free-games strategy work?

Epic’s figures suggest the program generates substantial claims and can coincide with large audience peaks for participating games. Allison’s reported user-acquisition and conversion estimates also indicate that Epic sees a route from free offers to paying customers. The store recorded $1.16 billion in PC-player spending in 2025, up 6% year over year, and 78 million monthly active users on PC in December 2025, a company record. Those store-wide figures provide context, but they do not isolate the free-games program’s contribution.

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  • If playing on a console platform (PlayStation Network, Xbox Live, Nintendo Switch or Mobile) you need to link your Epic Games account to that gaming platform (one time) to redeem your gift card code
  • The 16 digit code on the back of the card WILL NOT work if redeemed directly through your gaming platform (PlayStation Network, Xbox Live, Nintendo Switch, Mobile, etc.)
  • Note: Nintendo devices do not support Fortnite Shared Wallet, so V-Bucks purchased using your account balance will not show up on your Nintendo device. However, if you purchase items in the web Item Shop — or another platform where you play Fortnite — those items will be available in your Locker across all platforms.
  • Redemption: Online

A complete return-on-investment answer would require more than claims or peaks: it would need comparable acquisition costs, a clear definition of a converted user, post-offer retention and activity, purchases attributable to the channel, and developer outcomes. The cited disclosures do not supply that full comparison. So the best-supported conclusion is narrower: Epic presents the giveaways as an effective acquisition and awareness expense, and its reported results show reach and engagement, but the public figures do not independently prove the program’s overall profitability. Allison’s 2026 interview gives his budget, acquisition, and conversion estimates; Epic’s 2025 store statistics report the store-wide spending and activity figures.

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