Here we go again. Armchair economists bleating “why everything cost money, corporate bad” with no actual expertise to back it up. Steam is not a parasitic middle man, it is a collection of services that would have to be provisioned and operated by the developer otherwise.
- A massive infrastructure to store and deliver the game and its updates, worldwide, and at an acceptable bandwidth that Valve operates
- A storefront that enables monetizing the game
- The audience and discoverability that would not exist otherwise
- The Steam API, achievements, cloud saves
- The client itself, content management, validation, and Linux compatibility tools
- Network and operational security
- (edit) Also keep in mind that Steam and its services are operated by experts. A game developer would have to hire the experts or get training.
That’s where the cut goes.
Valve has about 100 employees, Steam is operated by about 40, but I would love to have a source on the “generational wealth” part. Most of the income is likely spent on operational costs, like the aforementioned massive CDN infrastructure. If you’ve never worked in corporate-level networking, it might elude you how ridiculously fucking expensive stuff gets, especially at a worldwide scale.
it might elude you how ridiculously fucking expensive stuff gets
I don’t know how that scales to worldwide CDN setup, but I work with a company who has presense on multiple countries and they drop casually 150-200k to few servers alone which provide services for at maximum for couple of thousand users. Networking, labor, power and things like that not included, just the hardware in a cardboard boxes.
Obviously there’s a ton of factors on this and I can’t elaborate our setup any further for obvious reasons, but just to give some scale how expensive things can get I can share my very real world experience. And that setup is pretty much the low end on the spectrum. 10k a month for a any as-a-service setup is almost a rounding error even with relatively low user count.
Serving anything to 100+ million people globally is a whole another beast. Wikipedia is a decent comparison, running a single website which looks like relatively simple to the end user (and oh boy it is not, but your Joe Average doesn’t know nor care about that) takes around 170 million dollars per year just on operating costs.
I don’t have any kind of opionion if that 30% is reasonable, but I do know that running that beast is not cheap and the money needs to come from somewhere. And as a customer, Steam just offers me what I want in a package which is the best one around, so they’ll keep getting my pennies until something better comes along. And I’m very aware that their service is not perfect and that I don’t really own anything on their platform, but for me in the current state in my life, they just provide the best bang for my buck and for the very limited time I have to spend with gaming.
You forget to mention the cut that goes into the ceo billion dollar worth fleet of mega yachts
https://luxurylaunches.com/transport/gabe-newell-luxury-yachts.php
Success is not illegal. In Valve and Gaben’s case, it’s deserved, and probably as clean as you’ll ever see.
I firmly believe that Steam has allowed fair competition to exist. Epic had the greatest chance to become viable competition, but they fumbled the store’s launch, poached Metro Exodus and fucked over the people who preordered, did not have the foresight to implement some kind of preloading for Borderlands 3, and pissed people off when they refused to allow non-exclusive indie games to exist on the store while they made an exception for Cyberpunk 2077. In that time, the only thing that Valve did that might have hurt EGS is refuse to host store pages and ads for games that weren’t going to launch on their platform. Shortly after that, Valve released the Steam Deck (the most pro-consumer handheld I’ve seen to date), SteamOS (free), Proton (free), DXVK (free), Gamescope (free), and have contributed (for free) to upstream projects like Wine. Of all the billionaires, Gaben is the only one I can think of that I’m okay with being a billionaire.
You are one of the few who share my exact same feelings toward Epic as compared to Steam. I intentionally have never, and will never, have any of my money go to Epic for the shady “exclusivity deals” they made with shitty devs, to poach business from Steam. I only just now bought Metro: Exodus, in Steam, because of their lead dev’s comments to the backlash they faced when pulling it from Steam.
You missed something, however. If I recall Epic did all the things you mentioned, but also was caught stealing user data from Steam .dat files found on the machine.
Y’all wanna know what anti-competitive business practices look like? Turn your gaze toward EGS, cause that’s what it looks like. Steam is the beast it is thanks to Gabe and the work of talented devs over the last 20 years. Make better products, get more loyal consumers!
Sucks that so many misinformed consumers/devs conflate success from better products with success from monopolistic actions. But then again, we got another 4 years of tRump due to that illiteracy so…
Success is not illegal. In Valve and Gaben’s case, it’s deserved, and probably as clean as you’ll ever see.
Fuck off. Steam is a third party proprietary launcher that promotes gambling to kids. We are on the verge of a climate disaster and people are getting poorer every year that goes by. A fleet of mega yachts is a smack on everyone and the planet.
Making billions off a proprietary app targeted at kids and spending the money on yacht it’s not success, it’s greed and mental illness. You do not make billions in a clean way.
That’s all nice, but you’re dreaming if you think any of that adds up to 30% of the value of a video game.
I don’t think that’s exactly how it works… It isn’t just the value of the game, it’s the exposure and distribution that it gets just for being on Steam. I imagine that’s well worth the 30% to most, which is why most devs seem OK with it.
It does seem slightly high to this non-expert, but I don’t really know enough to say for sure that it’s anti-competitive or anything.
It’s a monopoly on exposure.
The infrastructure and services they provide (outside of an advertising monopoly), do not cost, and are not worth anywhere near 30%.
Think about how much effort and time goes into developing a game, and then think about how much time and effort go into hosting the download files for that game and providing a forum. It’s not 30%.
They should get more than credit card transaction fees, but nowhere near 30%. I expect Epic would be quite profitable at 12% if they hadn’t invested in a terrible exclusive strategy that people hated.
It’s not slightly high when you realize that someone has to pay for bandwidth, advertising, licensing fees etc. IGN (please take that with a grain of salt) has an infographic about this from an article awhile back. I feel like it explains fairly well that the industry standard is 30% and that only a handful of stores actually provide anything below that. And Nintendo particularly is reported to take 30-40% depending. I can appreciate that people are naturally distrustful of any large company. I can appreciate that steam doesn’t get it right 100% of the time and there are valid criticisms of it’s business practices and decisions over time. But on the other hand, this has always seemed like a nothing burger to me.
When you buy a digital key at Walmart or Best Buy or Game Stop, they get a 30% cut too.
It’s not even 30% of all sales: “Valve even adjusted Steam’s rates late last year in what seemed to be a response to the pressure from Epic, but this change is likely only impactful to major developers. After $10 million in sales through Steam, Valve’s cut drops to 25% on all new sales, and drops again to 20% on sales after $50 million. For reference, earning $10 million would mean selling just under 170k copies of a $60 game, and far more for independent games that are rarely that expensive.”
Yeah, I think the big difference between Steam and Google Play and the App Store is that Steam does not own Windows and has actual competition.
I think asking for a cut just because you own the OS is despicable, but Steam is actually providing a service.
Steam does own SteamOS but they also bundle a third party software repo (flathub).
You bring up a good point, why are consoles not being forced to allow other app stores like phones?
People should really read the Steamworks documentation to get an idea of the absurd amount of services Steam offers https://partner.steamgames.com/doc/home
The Community > Discussions page for a game is one of Steam’s most underrated features. The amount of times I’ve wanted to know something super specific about a game prior to buying and found exactly the info I was looking for in the Discussions page. Oftentimes with developer comments on said feature clearly labeled. So clutch.
