- 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