"Giving away free games seems counterintuitive as a strategy, but companies spend money to acquire users into games," said Sweeney. "For about a quarter of the price that it costs to acquire users through Facebook ads or Google Search Ads, we can pay a game developer a lot of money for the right to distribute their game to our users, and we can bring in new users to the Epic Games Store at a very economical rate.

Good for Epic.

"And you might think that this would hurt the sales prospects of games on the Epic Game Store, but developers who give away free games actually see an upsurge in the sale of their paid games on the store, just because their free game raises awareness. And it's so much that often developers, when they're about to launch a new game, come with us wanting to work closely on a timed release of a free game, just to drive user awareness of their next game. That's been an awesome thing. And it's been by far the most cost effective aspect of the Epic Games Store."

Good for developers, that have decent enough games.

"We spent a lot of money on exclusives," said Sweeney. "A few of them worked extremely well. A lot of them were not good investments, but the free games program has been just magical."

Exclusives, of course this is the expected result, because that how game publishing/marketing works. People in this thread talking like publishers make a lot of money on 80% of their released games. (<-- it's not, in case you did not get it. ) I think it's just Tim Sweeney's way of saying, we will adjust our approach in the future, like what any publicly traded CEO would do.