Epic is failing at being a loss-leader in the PC gaming digital distribution space because they provides a product that, at best, could be described as 'nominally competent' instead of equal to or better than those of the competition to one audience that actually matters - paying customers.This. This is also the same plan of basically every other tech company with years of massive losses fueled by venture capital. Out-"compete" everyone else by throwing cash at it, in the hope that once they are all forced out of the market you can make your money back.
People will go where the best service is provided, and EGS ain't pulling any early 2000s-Amazons.