It’s actually pretty easy to argue it’s fair once you look at everything. Steam offers a shit ton of resources for that 30%, including hosting, distribution, patching, workshop, etc. And that’s not even getting into the fact that the dev can get all of that AND get steam keys that they can distribute themselves (meaning valve doesn’t get a cut of that) that still utilizes the same infra.
I wish I could find it, but I recently saw a video of Thor (@piratesoftware, does his own game dev and used to work for Blizzard) talking about this and going into even more detail than I can remember at the moment.
Ok, so then handle all of that yourself at cost. Which will lead to the death of your studio faster?
Seriously though, a $15 game selling just 100k copies is still $1m to you (before taxes) and has no upkeep. You do all that steam does yourself, you’re going to drown in operations costs and upkeep time.
I agree with you but at the same time I feel like I should point out that this is the China fallacy, where there’s a billion people in China and if you could just tap into even 0.3% of their market you would make bank.
While it’s technically true, the fallacy behind it overshadows the difficulty of acquiring that percentage of the market. The grand majority of games released never become cash positive, and over 50% of games on steam alone never make more than $4,000.
This is not an issue with distribution, it’s an issue with marketing and market fit, and accompanied by the base fact of that if you’re the kind of person who is good at making games, it would be a rarity for you to also be the kind of person that’s good at marketing the games you made.
Those are two entirely different wheelhouses that function best with two entirely different personality types, and that’s not covering all of the different disciplines that you need to make a game or run a game making company in the first place.
Use Steams competitors then if you don’t want to pay Steams cut. If you’re getting less overall from them, that tells you all you need to know about the validity of Steams fees
Ah fair. My reading comprehension also failed there because I thought you were the same person the person you responded to was responding to was (Person I thought you were - Person you responded to - you - me: if that makes what I said make more sense). I guess my response though is that discoverability is going to be an issue for any new game regardless of whether someone chooses to put their game on Steam or not (and I’d argue that not putting their game on Steam would negatively impact their discoverability, hence another point in favour of Steams cut)
edit: (I actively hate Epic though, so consider taking their money as losing the possibility of ever getting mine. I am NOT for console exclusive bs on the PC marketplace, and Epic is actively trying to make that a thing. So if you except money from epic to go exclusive on their store, I’m only ever going to pirate your game, if I can even be bothered to play it at all)
Competition isn’t possible? EGS is an active competitor that only takes 12% and they still can’t get fucking anywhere because their store fucking sucks. GoG exists and also takes 30%, their store/launcher are ok, but they don’t offer nearly as much for that 30%, but they make up for that with drm free games. There are other minor players out there, so competition is definitely possible, but not one of them offers a comparable product.
The only way steam would lower their cut is if someone came along and made a game store that actually offered a significant portion of the services steam offered and was about as good but also had a lower cut of sales. But good luck finding someone who can do all of that and also takes less than 30%.
You don’t seem to understand what a monopoly is. Having some small competition that’s not ever going to threaten you because you can leverage your dominant position is also a case of a monopoly.
Epic poured billions of Fortnite money with little to show for it. How is anyone going to compete with a platform that most gamers have all of their games on? This is why they need to be broken up or brought to order via regulations. Companies are not your friends.
Success is not illegal. Valve isn’t buying up smaller competing storefronts, or paying off developers for exclusivity, or burying competition in legal fees and prepared 80-page lawsuits. The only thing holding back real competition is the competing platforms being dogshit.
I was excited for the EGS when it was announced. Then it turned out to be a garbage platform with the shady exclusivity deals that turned Steam into an ad platform for games that had been poached by Epic. Valve responded to it with the Steam Deck and Proton.
At some point you’re so entrenched in the market you don’t have to do anything anymore. I was quite surprised that Valve somehow evaded EU Digital Markets Act gatekeeper criteria.
Ok but you made a claim that they were leveraging their market position to maintain a monopoly. So please describe how they are doing that in any way shape or form.
It’s actually pretty easy to argue it’s fair once you look at everything. Steam offers a shit ton of resources for that 30%, including hosting, distribution, patching, workshop, etc. And that’s not even getting into the fact that the dev can get all of that AND get steam keys that they can distribute themselves (meaning valve doesn’t get a cut of that) that still utilizes the same infra.
I wish I could find it, but I recently saw a video of Thor (@piratesoftware, does his own game dev and used to work for Blizzard) talking about this and going into even more detail than I can remember at the moment.
As an Indie dev, a 30% cut of profit could be the death of my one man studio (if I ever get around to actually starting it)
Ok, so then handle all of that yourself at cost. Which will lead to the death of your studio faster?
Seriously though, a $15 game selling just 100k copies is still $1m to you (before taxes) and has no upkeep. You do all that steam does yourself, you’re going to drown in operations costs and upkeep time.
I agree with you but at the same time I feel like I should point out that this is the China fallacy, where there’s a billion people in China and if you could just tap into even 0.3% of their market you would make bank.
While it’s technically true, the fallacy behind it overshadows the difficulty of acquiring that percentage of the market. The grand majority of games released never become cash positive, and over 50% of games on steam alone never make more than $4,000.
https://vginsights.com/insights/article/infographic-indie-game-revenues-on-steam
This is not an issue with distribution, it’s an issue with marketing and market fit, and accompanied by the base fact of that if you’re the kind of person who is good at making games, it would be a rarity for you to also be the kind of person that’s good at marketing the games you made.
Those are two entirely different wheelhouses that function best with two entirely different personality types, and that’s not covering all of the different disciplines that you need to make a game or run a game making company in the first place.
Use Steams competitors then if you don’t want to pay Steams cut. If you’re getting less overall from them, that tells you all you need to know about the validity of Steams fees
I think you missed my point. I am in favor of steam and valve by far, my quibble is with the idea that anyone can sell 100,000 copies of a $15 game.
For every Stardew Valley there are thousands of other games no one has ever heard of and that almost no one bought.
By all means though, make great games. I’ll be buying them on steam.
Ah fair. My reading comprehension also failed there because I thought you were the same person the person you responded to was responding to was (Person I thought you were - Person you responded to - you - me: if that makes what I said make more sense). I guess my response though is that discoverability is going to be an issue for any new game regardless of whether someone chooses to put their game on Steam or not (and I’d argue that not putting their game on Steam would negatively impact their discoverability, hence another point in favour of Steams cut)
edit: (I actively hate Epic though, so consider taking their money as losing the possibility of ever getting mine. I am NOT for console exclusive bs on the PC marketplace, and Epic is actively trying to make that a thing. So if you except money from epic to go exclusive on their store, I’m only ever going to pirate your game, if I can even be bothered to play it at all)
The cut would be less if competition was possible. I will bet my arm, first child and souls on this.
And you’d lose all of that.
Competition isn’t possible? EGS is an active competitor that only takes 12% and they still can’t get fucking anywhere because their store fucking sucks. GoG exists and also takes 30%, their store/launcher are ok, but they don’t offer nearly as much for that 30%, but they make up for that with drm free games. There are other minor players out there, so competition is definitely possible, but not one of them offers a comparable product.
The only way steam would lower their cut is if someone came along and made a game store that actually offered a significant portion of the services steam offered and was about as good but also had a lower cut of sales. But good luck finding someone who can do all of that and also takes less than 30%.
You don’t seem to understand what a monopoly is. Having some small competition that’s not ever going to threaten you because you can leverage your dominant position is also a case of a monopoly.
Epic poured billions of Fortnite money with little to show for it. How is anyone going to compete with a platform that most gamers have all of their games on? This is why they need to be broken up or brought to order via regulations. Companies are not your friends.
Success is not illegal. Valve isn’t buying up smaller competing storefronts, or paying off developers for exclusivity, or burying competition in legal fees and prepared 80-page lawsuits. The only thing holding back real competition is the competing platforms being dogshit.
I was excited for the EGS when it was announced. Then it turned out to be a garbage platform with the shady exclusivity deals that turned Steam into an ad platform for games that had been poached by Epic. Valve responded to it with the Steam Deck and Proton.
Leveraging dominant position to keep your monopoly is illegal even in the US.
What are they doing to leverage their dominant position?
At some point you’re so entrenched in the market you don’t have to do anything anymore. I was quite surprised that Valve somehow evaded EU Digital Markets Act gatekeeper criteria.
Ok but you made a claim that they were leveraging their market position to maintain a monopoly. So please describe how they are doing that in any way shape or form.