Nothing more disappointing to me than seeing a game I might enjoy… and then it’s only available on PC on Epic Games store. Why can’t it be available on Epic, Xbox game store and Steam? It’s so annoying, like you have no choice but to use Epic… which I would literally do ANYTHING not to use.
With regards to
People don’t want monopolies because companies can abuse their position to hurt consumers.
It’s important to remember that it’s not only buyers, but developers that use Steam. Steam is currently involved in a lawsuit with developers.
The “commission” would be Valve’s cut on sales made through Steam, which starts at 30% and drops to 20% as sales increase. Valve defended the percentage as “industry standard” when Wolfire’s lawsuit was first filed, but that’s no longer the case: The Epic Games Store and Microsoft both take just 12% of sales made through their stores.
Also relevant, from 2021 but the same lawsuit,
The Wolfire lawsuit estimates that Valve controls “approximately 75 percent” of the $30 billion market for PC game sales, a number that lines up with other public estimates of Steam’s dominance.
I like Steam, I’m not hating on Steam, but rushing to defend it from people saying it’s a monopoly (or calling Epic Games Store a monopoly) is very much denying reality.
30% as industry standard
That’s the same as app stores/etc, and is still a common cut to take. I’m not convinced the cuts that Epic is taking are actually sustainable for offering downloads/updates/etc for a game indefinitely, but it’s hard to tell since the Epic store is already bleeding money.
I’ll also mention that Audible (which has a monopoly in the audiobook space) reportably takes a 60-75% cut of audiobooks sold on their platform (they take only 60% if you agree to sell exclusively on audible, but they take the full 75% if you want to sell the book somewhere else as well). Monopolies abusing their position is really common, but I haven’t seen anything similar from Steam that makes me think they’re abusing their position. I suspect PC gaming would be in a far worse state if another company controlled the popular storefront.
That 30% is standard for most storefronts. Just look at Google Play and Apple’s App Store.
If you’re that put off by 30% cuts then don’t look into retail stores because their markups make that look like chump change.
It’s important to remember that it’s not only buyers, but developers that use Steam. Steam is currently involved in a lawsuit with developers.
Actually, it’s generally publishers, not developers that end up paying the 30% cut. For most games the developer gets paid upfront by the publisher, and the publisher pockets the difference between development costs and sales. I’d also like to point out that prices between EGS and Steam are generally the same, so instead of getting lower priced games as promised, the publishers are just pocketing the larger profits.
Repeat Tim Swiney’s fake talking points all you want, the fact of the matter is that Valve isn’t behaving like a monopoly, even if they command a huge portion of the market. The reason they’re so big in the first place is specifically because they’re very pro-consumer
It’s important to remember that it’s not only buyers, but developers that use Steam. Steam is currently involved in a lawsuit with developers.
Actually, it’s generally publishers, not developers that end up paying the 30% cut.
I’m keeping the model simple by equating publisher with developer. Basically, you’ve got the consumer, the store, and the supplier. That some (most) developer studios go through a publisher for funding is a business practice that’s actually unrelated to Steam. Especially because they allow indie content.
Epic is running a loss leader at this point so it’s not an business model to point to, since it’s subsidized by unreal and fortnite.
Microsoft on Xbox is taking a 30% cut so it wouldn’t be farfetched to assume cut is more a strategy to try to expand market share and are willing to increase down the line if they got market share. And Microsoft is Microsoft so has lot of other profitable divisions to be able to run things at a loss.
One actually better to point to might be GOG which is also taking 30%, but in 2021 had a 1 million dollar loss. https://www.pcgamer.com/gog-looks-like-its-in-a-much-healthier-spot-after-a-hairy-2021/
Which raises the question. What is actually sustainable? Especially the lower cut offered have other much more profitable divisions that are covering potential losses and not being the main source of revenue.
All retail establishments utilize loss leaders. It’s not some underhanded duplicitous tactic, it’s just a common business strategy
Loss leaders that lead to buying other things that lead to overall profitability for that section of the business.
This entire division is operating at a loss. Point isn’t that it is unusual or underhanded. It’s that because of the way the division is currently run it is not a business model to point to as being sustainable.
