Lower distribution costs (in exchange for less marketing and a worse product) are not lower prices though. If Epic had spent half the time and money they spent negotiating for exclusives on negotiating for lower prices, Im sure they easily could have. For example, Epic advertises a 12% fee on sales, but if they instead took 10% (maybe spent less on exclusives to account for this) and then required prices be 5% lower than MSRP on other stores, then suddenly its a lot more appealing to customers - the ones actually providing the money - while still offering a much better deal than Steam. Similarly, Epic could have just passed on the saving more directly, like I said, with a rewards program or similar. Epic had plenty of ways to actually lower prices for their customer rather than just their buisiness partners. They just chose not to.

Frankly, Epic is pretty irrelevant to this point considering how significantly they chose to burn the bridges with their customers right from the get-go anyway. Unless you're studying how to lose consumer trust or goodwill, they're not really a good reference.