this post was submitted on 14 Mar 2024
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Maybe he meant in the sense that they filtered out the shovelware and asset flips from Epic Games Store (at least until recently) so to make the store look good. That way they're providing hosting only for the games that actually will be downloaded a decent amount of times, avoiding wasting storage on bad/forgotten games.
But hosting is basically a rounding error in the equation of selling games on an online store. The actually significant cost is going to be in developing and maintaining the software powering the online store, and that cost is fixed. This in turn means that having less games in the store is an obvious disadvantage, not an advantage.
....I don't mean to be rude, but you shouldn't speak to things you do not understand or know about. Cloud hosting costs for a large e-commerce site are rather large, definitely variable and not cheap.
Cost of developing software is also not fixed over any meaningful period.
It's also an indefinite cost. It's not like Valve decides to stop hosting a game they've sold after a while. Generally speaking, they store and host it forever even if they never get revenue from sales of it ever again. Of course, I'm sure if the revenue wanes that much that downloads will too, but there's definitely a crossover point where maintenance will start being a permanent negative cashflow. Now multiply that across tens to hundreds of thousands of games and counting. Forever. You kind of have to consider that for the long term when setting your pricing for today since sales cuts are the only revenue you get.