I have paid $10 for every $1 of game I play, perhaps as high as $100:$1. A 30% cut of that seems totally reasonable. I have hundreds of games I keep just in case, and have played 10s of games I'd never have considered because they dont appear in Game Informer, PC Gamer, GoG, Twitch, Youtube, or other channels. They just are magically brought to me by steam, and I buy it and try it because I'm an adult now.
If game creators hate this, I feel bad for them, but I don't want anything to change as a consumer.
This doesn't mean Valve is perfect but if a developer is "suffering" because of a 30% cut they probably need to improve their pricing/game/community/etc.
Steam conveniently abstracts all of that for you. One stop shop. No complex deals just to deal with getting paid for your game (or additional content), barely any chargeback fraud, you don't even have to deal with stuff such as Germany's highly complex age rating because Steam abstracts that with a questionnaire. Steam claimed to recognize and support 237 countries [1], although that list includes disputed countries, so take it with a grain of salt, but in general I'd say unless a country is affected by US sanctions (i.e. North Korea, Iran, Russia, Belarus) or has its own restrictions (i.e. China), chances are 99% you as a publisher can sell your game in this country with everything being taken care of.
And on top of that, gamers likely will already have a Steam account with payment already set up, which means far, far less friction than the likes of Epic Games impose.
That definitely is worth a cut.
Indie games would be far more of a gamble to buy if Steam wasn't around, and just finding them would be a huge hurdle.
A list that's growing by the day lol
The market rate for this is low single digit percents.
>update distributions
Bandwidth is not worth a percentage of game revenue. If it were it would be <1%.
>DRM
Steam's DRM is terrible.
>anti-cheat
Also terrible.
>user management...
This is not worth a percentage of revenue.
All of these together is not worth 30%. The only thing worth 30% is the ability for the Stram store to put your game in front of a random person. Being able to reach new customers.
We're talking about virtually every country on Earth. Good luck trying to replicate that, the taxes/legal entity part alone will cost you an arm and a leg in setup time, not to mention ongoing costs in accounting, filing reports and dealing with other bureaucracy BS.
> Bandwidth is not worth a percentage of game revenue.
I'm not talking about bandwidth or a CDN here. I'm talking about a reliable and easy mechanism to get updates distributed to end-users - consisting of a management backend, the CDN and finally a client side software that's actually doing the upgrades. And the latter is something many have tried and failed to do or ended up getting 0wned in the process (e.g. just recently notepad++ [1]).
> Steam's DRM is terrible.
Is it? Sure, for some AAA titles you'll see Denuvo slopped on top, but for the wide masses, Steam's DRM is more than enough.
> [user management] is not worth a percentage of revenue.
Managing user data is an utter PITA in the era of GDPR et al, and on top of that it creates a need for customer support resources - people forget their password, get hacked, god knows what else. As a game dev under any of the major storefronts, you don't have to deal with that at all.
[1] https://notepad-plus-plus.org/news/hijacked-incident-info-up...
Because for the wide masses you don't actually need any DRM, which is about what Steam provides: nothing.
Why would you need to? Notice that the comment you replied to used the phrasing "market rate". The service you're describing is commoditized today and none of the major players charge anywhere near 30%.
Payment, yes, that is effectively commoditized. But Stripe, Paypal or cryptocoins only solve the "collect and move money across the world" part, not the "deal with the BS around taxes and tariffs in an N-N matrix of countries for publishers and consumers".
As a publisher of a game or other piece of software, I either have to use one of the global storefronts (Apple's App Store, Google's Play Store, Steam, Epic, Microsoft Store) to abstract this problem away for me (and all of them but MS have a somewhat comparable revenue share), or I have to find publishers in each jurisdiction I want to sell and negotiate with them and have additional expenses and efforts in repatriating the income, or I have to go and create my own legal entity for each jurisdiction and deal with filing the proper taxes and other BS on my own. Oh and notably the latter case also applies to dealing with sanctions lists - can't imagine OFAC being happy when my, say, Swiss subsidiary has the sanctioned offspring of a Russian oligarch buy a game from them?
This regulatory moat of doing international business is what keeps revenue shares at ~30% across the global stores. It is extremely difficult to build a competitor for the messes I mentioned - otherwise, someone else would have stepped up long ago to capture this gigantic money spigot.
If I didn't have Steam (or equivalent service like GoG), I wouldn't buy new games. That's just reality. I would play the same games I have for decades. Instead, Steam has created a very effective recommendation engine that gives me a great selection. That's more than worth a 30% cut.
Maybe their business model is awful, but I love what they do, and what they have done. They have made my linux machine a top tier gaming option, freeing me from the only use of windows left. They have brought me the steam deck, which has a thriving accessory market due to their creative commons licensing. Etc etc. They are pro consumer.
I want steam to continue largely as is. In an ideal world all artists would be better compensated for the joy they bring to the world, but I'm quite happy as a consumer of art. Not to be too harsh, but frankly, the existence of struggle for recognition does not entitle artists to a penny of my money or a second of my time beyond the transaction they propose, nor does it entitle them to anything that Valve does or makes. That we can all work together well is a function of a local solution to the tension of conflicting interests. Valve is seeking a balance. It could be much worse for both sides.
But if you want, think of it this way - all of Steam's profits, billions of dollars, are only 30% of the sales they have brought. They made 17 Billion in rev last year, so nearly 25 Billion went to game makers / publishers. This is 2-3x what spotify paid to artists in the same year.
I believe so. However, even if it's not I don't see any other platform allowing you to use their service and sidestep platform fees. Someone mentioned above that there might be limitations for the number of keys, but I'm not aware.
They're demonstrably not. I'd advise you to read up on the concept of a monopoly.
> They made 17 Billion in rev last year, so nearly 25 Billion went to game makers / publishers. This is 2-3x what spotify paid to artists in the same year.
And? I don't understand why you're just comparing two values in absolute values. You're talking as if Valve is giving away money.
You do not have hundreds of games. You have a non-transferable license to play those games while they are made available by Valve and while your account is not banned.
- One chargeback for your 5$ game can consume you 55$ or more, handful and you permanently lose the ability to accept the payment anywhere including future businesses outside of games
- Amount of people that will take parents cards is eye watering
- The value of offline payment acceptance in the form of physical cards (kids do not possess standard payment rails but can acquire your game on steam in the cash)
- They don't take flat 30% for almost a decade now
- You don't often get to use Stripe or 2-3%. Your cost closer about 15% if you choose to process you own payments
Yes Valve is very generous.
They take MORE from developers who make LESS money. I sure bottom 98% of developers never sell above $10,000,000 to decrease cut from 30% to 25%.
Very few indie devs or small indie studios ever sell over 50,000-100,000 copies.
PS: In practice if your project funded by publisher it means that you as developer will make less money from a game than Valve.
So that essentially means a publisher takes even more than valve, while doing almost nothing.
Then publisher takes 70-90% before recoup and 50% afte of what remain after VAT, refunds and Valve's 30%.
Problem is when you spent $100,000 and sold lets say for $400,000:
* Valve gets $133,000
* Publisher gets $100,000 + $90,000
And you get $90,000 and real number would be much worse because VAT, refunds, etc.
Oh, dont forget to pay your taxes on $90,000. Good luck!
This sounds like personal experience. Can you elaborate?
Edit: OHH perhaps you are saying this is one of the benefits of Steam; that it shields you from all this.
Yes. In a sijmilar way: regular companies get Stripe at commodity pricing, games get xsolla, paysafe, tebex, and a massive compliance questionnaire, games are software (to you) but closer to porn or gambling on risk (to MoRs and processors).
People are less "likely" to charge back Steam because of their other games being frozen and Steam has volume to dilute chargebacks whereas you starting out may hit double digit dispute rates in one. Whether this is fair is an exercise best left to the reader ;.
They ran it at a loss and try to use its existence to declare everyone else overcharging. Apple, Google, Steam. Meanwhile, they were unable to make money, just proving they don't know how business works.
The number of fully funded attempts to compete with steam is impressive. Steam has more competition than any other of the major app stores. Steam also had to provide additional value over pre-existing methods of installing games on the PC in a way the Android Play Store or the PlayStation Store did not have to.
You would have thought that close relationship with the games industry- someone must know how to make a high performance native application. Yet it always felt like web developers pumping out another half assed Electron platform. The Steam store must generate billions in revenue -put some real manpower behind the engineering.
I'm very fine with them not getting a clue though, Valve spends money and effort on promoting Linux and Epic (Tim Sweeney) kinda does the opposite. With all the shit Microsoft is pulling, he still prefers Windows while complaining about it.
This is exactly how it's setup right now.
Edit: whoops that’s completely false. I do not know where I got that idea
They don't own the OS, they don't (until very recently) own the hardware, they haven't really made any major uncompetitive or anti-consumer moves I'm aware of, and they provide a service that the majority of devs consider worth it.
I guess you could argue they're taking advantage of a bit of a "natural monopoly", but there's still plenty of room for other people to eat their lunch, and things like itch seem to have carved out a niche for devs that would rather keep their money than get the additional services Steam offers.
I don't think Steam is flawless, but for how powerful they are, they sure seem a lot less evil than almost every other large corporation.
Valve built a platform that gamers like, and gamers like it for all the choices Valve made.
I also find it interesting you chose "not allowing reselling" as a thing that would have made users not like steam... but not allowing reselling is probably the feature that game developers like the most! I wouldn't be surprised if developers would choose to keep the 30% fee over dropping the fee but changing to allow reselling.
Same reason to embed your trailer on your site with YouTube, even if you could afford the bandwidth and keep users from having to watch ad-rolls--self-hosted and the YouTube algorithm will punish you.
A huge part of the high profits portions of the economy is based on this kind of winner take all capture.
I can easily see this providing value above and beyond most other retailers that would sell video games. For example, Best Buy takes a 30% cut for physical merchandise, without providing any of the above mentioned features.