Newzoo Backtracks as Analyst Defends Viral “Epic Games Store Can’t Recover” Claim with Receipts

Newzoo distances itself from analyst’s claim that Epic Games Store cannot recover

A viral critique of the Epic Games Store has taken an unexpected turn after Newzoo publicly distanced itself from comments made by one of its own senior analysts. The remarks suggested that Epic’s PC storefront was struggling to find a sustainable path against Steam, but Epic Games quickly pushed back with performance figures that paint a much stronger picture.

The controversy began when Emmanuel Rosier, Newzoo’s director of market intelligence, questioned whether the Epic Games Store could realistically recover or compete with Steam’s dominant position in the PC gaming market. His comments focused on Epic’s long-running free games strategy, arguing that many users claim free titles without actually playing them, turning the platform into more of a digital library collector than a regularly used storefront.

Rosier also suggested that Epic Games may have spread itself too thin by fighting several major battles at once. In recent years, Epic has challenged Steam in PC game distribution while also taking on Apple and Google over mobile app store policies. According to his view, the company may be better served by focusing on its strengths as a game developer, especially with Fortnite continuing to evolve into a broader entertainment platform.

While Rosier’s comments gained attention quickly, Newzoo later clarified that they should not be interpreted as an official company assessment. The research firm stated that the remarks were not based on Newzoo data or analysis and did not account for relevant publicly available evidence.

Epic Games also responded directly with numbers that strongly contradicted the idea that its storefront is failing. Martin Keely, president and general manager of the Epic Games Store, said player engagement and spending on third-party PC games reached record levels in 2025.

According to Epic, players spent 2.78 billion hours playing third-party games through the Epic Games Store in 2025. The company also said spending on third-party PC games grew 57% year over year, reaching an all-time high of $400 million.

Those figures suggest that Epic’s storefront is still gaining traction, even if it continues to face an uphill battle against Steam, which remains the default platform for many PC gamers. Steam’s deep library, long-established user habits, community features, reviews, mod support, and frequent sales have made it difficult for any competitor to pull players away in large numbers.

Still, Epic has managed to carve out a recognizable place in the PC gaming market. Its weekly free games have been one of its most visible tactics, with major giveaways such as Grand Theft Auto V helping bring millions of users to the platform. Even if not every claimed game is played immediately, Epic’s strategy has helped build account numbers, expand awareness, and keep the store in the conversation.

The company is also expected to release a new launcher later this year, which could be part of a broader effort to win over PC gamers who remain loyal to Steam. Improvements to the launcher experience, library management, performance, and user interface could play a key role in making the Epic Games Store feel more competitive.

There are also signs that Epic may continue expanding its reach beyond traditional Windows PC gaming. Reports have pointed to a possible future Linux launch, a move that could help the store appeal to a wider audience, especially as Linux gaming continues to gain attention through handheld PCs and compatibility tools.

For now, the situation highlights a larger debate in the gaming industry: can any PC game store meaningfully challenge Steam’s dominance, or is the market already too locked in? Rosier’s personal assessment argued that Epic may be running out of room, while Epic’s own data suggests the store is far from finished.

What is clear is that the Epic Games Store remains a major player in the PC gaming space, even if its strategy continues to divide opinions. Free games, exclusive deals, third-party game sales, Fortnite’s massive ecosystem, and upcoming platform improvements all remain central to Epic’s push for a stronger foothold in digital game distribution.