Epic Games is actively pushing to bring the Epic Games Store to the next-generation Xbox. With the company reporting “serious growth” and confirming Epic has “been talking to the folks at Microsoft,” this is not a hypothetical scenario. It signals how quickly the console landscape is changing as Microsoft becomes more receptive to third-party storefronts and a more open ecosystem.
Epic Games is widely recognized for Fortnite, but it also operates a significant PC gaming store. While it is sometimes unfairly dismissed in gaming discussions, its presence is notable.
Some analyses have suggested that users primarily engage with the Epic Games Store for its free games, rather than actively purchasing titles. Epic has also faced debate regarding its publishing rules, with discussions questioning its overall viability as a gaming store.
However, recent data supports the store’s viability, as Epic shared its annual revenue reporting for 2025. Epic Games Store VP and GM Steve Allison provided insights into the platform’s future direction.
Epic players actually are buying games, as the firm doubles down on “free”
The Epic Games Store is set to receive a variety of new features soon, including cross-platform chat and improvements to unify its different storefront versions.
In its annual report, Epic Games described a store that is steadily growing, contrary to some claims. Allison explained that spending on third-party games increased by 57%, reaching $400 million last year for Epic, despite a challenging period for the industry overall. Epic noted that its growth figures do not include first-party payment solutions. Unlike some stores, such as Apple’s iOS, Epic does not restrict game and app platforms from directing users to their own payment solutions, allowing companies to retain a larger portion of their revenue. Usage on third-party games also grew by 4%, totaling approximately 3 billion playtime hours.
“We’ve been talking to the folks at Microsoft. If they do follow through with allowing Steam and the Epic Games Store on the next generation of Xbox console hardware, we will be there. I’m fairly certain that’ll require us to build an app that functions there.” – Epic Games Store GM Steve Allison
Epic also highlighted its free games program, noting that developers experience a significant uplift when a game is offered for free via its store, even on other platforms. Similar observations have been made by Microsoft when games are included in Xbox Game Pass — the increased access appears to boost virality for some titles, even on competing stores. Epic views this as a beneficial feature.
“We take it very seriously,” Allison stated regarding the free games program. “The team loves to highlight games that they think are awesome, that may have been underserved or missed by players.” Epic reports that the free games often see anywhere up to a 40% uplift on Steam and console platforms, generating interest and helping developers attract new fans. This strategy also benefits Epic directly.
“It brings in about 10 million new players a year through the program. It’s very consistent. It’s the best customer acquisition spend one can make, from a dollars-per-new-user standpoint,” Allison explained. “It’s really important for players. The company would not want to remove it, as it’s part of its identity.”
Epic sees opportunity with Xbox’s strategy, too, as it prioritizes user feedback
Epic, similar to Microsoft, is developing a PC store to compete directly with Steam, and potentially with each other. Despite this competition, Epic and Microsoft have collaborated extensively. Epic relies on Windows, as does Xbox.
Fortnite is available on the Xbox PC store, making it one of the few alternative ways to play the game. However, like Xbox, Epic is addressing various user experience and technical issues, highlighting how both platforms lag behind Steam in terms of polish.
“The underlying architecture is being revamped,” Allison stated regarding the Epic Games Store, hinting at a significant overhaul in the near future. “Complaints that the launcher can be slow to load, or that the library takes up system resources — all these aspects will be profoundly improved when this is released. It is expected in May or June. A recent demo showed a significant difference.”
Epic is also working on improving text chats across its games and platforms, aiming for parity with services like Steam, Battle.net, and Xbox. Additionally, Epic is developing community tooling features, such as forums.
Epic is collaborating with Xbox in various ways.
The next Xbox is expected to feature a layered interface designed to make Windows 11 more intuitive for controllers and TV sets. However, this optimization requires effort from developers. Epic is aware of rumors suggesting that the next Xbox is essentially a PC, and as such, could support Steam, GOG, and other PC stores. The next Xbox will have a layered interface to make Windows 11 more intuitive for controllers and TV sets, but it does require some leg work on developers’ part to truly optimize for. Steam has its Big Picture TV mode, and Xbox has its Full Screen Experience mode. Epic is investigating these new opportunities as well.
“Discussions about these matters have been ongoing,” Allison stated. “Epic has been talking to the folks at Microsoft. If they do follow through with allowing Steam and the Epic Games Store on the next generation of Xbox console hardware, Epic will be there. It is fairly certain that this will require building an app that functions on the console.”
Allison added that a fully Xbox Full Screen Experience-optimized Epic Games Store is not currently scheduled but is frequently discussed. “It is expected that this will eventually happen. A commitment cannot be made due to ongoing large projects. Allison is a big fan, having purchased every version of the ROG Ally, including the new Xbox Ally. The ability to play both Steam and Epic Games Store games on one device is excellent. Development for this is necessary, but it likely will not happen this year, possibly next year.”
Epic deserves a lot of credit
Epic Games is a company that often sparks controversy. The CEO’s opinions frequently lead to debate, and Fortnite’s impact on the gaming industry has been both beneficial and challenging, depending on perspective. Epic also discontinued Unreal Tournament.
However, the numerous positive contributions Epic has made to the industry are undeniable. Epic has leveraged Fortnite to pressure iOS and Google into opening their mobile platforms to all developers. The company offers some of the most generous revenue splits among sales platforms, influencing Xbox to adopt a similar revenue share for the Microsoft Store on PC. Epic is also eliminating all revenue sharing up to the first $1 million, which helps small and new developers establish themselves.
Gaming has increasingly evolved towards “games as a platform,” with Fortnite and Roblox being prime examples. Epic could have isolated itself from the broader games industry. However, unlike Roblox, Epic has utilized Fortnite to promote “traditional” PC games to its vast and younger audience through the Epic Games Store. This approach deserves significant recognition, especially in an era where some platform-centric games might prefer other parts of the industry did not exist.
If Microsoft genuinely intends to open the next Xbox to more third-party stores, Epic’s timing is opportune, and its ambitions are clear. The crucial question remains how far Microsoft is willing to go in redefining the Xbox ecosystem, and whether players are prepared for a console future that closely resembles a PC. The ongoing discussions could shape the next generation of Xbox.
