The Epic Games Store's slow, steady growth continues, as 1,100 more games were added to the storefront.

That title makes it seem like they have made 600 million separate games free and not that they have had 600 million users claiming games they have given away free.

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I suspect the contract means that they only actually pay for those that are played

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Pretty sure it’s a fixed amount to the publisher/devs for unlimited licenses during the free period, but varies by popularity of the game, according to documents from the lawsuit against Apple

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