but… when they handle payments, refunds, advertising (within their application) and game download costs (server infrastructure?), etc etc etc. it doesnt seem that crazy.
at least, for a lot of indie developers, not having to worry about those things, might easily be worth those 30%
I’d say it’s very reasonable. Steam is EXPENSIVE. If you know anything about bandwidth, it’s the insane cost. They don’t do many exclusivity deals, and they even let you sell steam keys elsewhere with 0 cut for steam without giving users a degraded experience.
For it to “even out” they’d only have to increase your reach ~50%.
They do way more than that. And they give you an inherent legitimacy that putting it on your own site doesn’t. It’s not just handling refunds; it’s the certainty as an end user that you’ll get one hassle free.
Without Steam (or another retailer with similar traits), selling an indie game would be closer to a pipe dream than really hard. In almost all cases (and this seems to apply even to AAA publishers as most of them come back), the 30% they’re taking is money you wouldn’t have without them.
I think there are a lot of people who weren’t around for, or don’t remember, how buying digital titles was before Steam got quite so popular.
It was pretty rare, and the overwhelming majority of indie games were released for free. There just wasn’t many good ways to get the word out, and most ways of taking payment were costly enough to set up that it was rarely worth trying to get some meager amount of pay if you were just a one man show with no external financial backing.
All of this is true but the ugly truth people don’t want to unpack is this is largely because over 90% of PC game purchases occur on Steam, meaning it’s not that they give you an advantage much as you’re nearly dead in the water if you aren’t on Steam unless you’re a AAA game made by a major dev. I’m sure they help as well but that market dominance means they’re essential more than anything.
Valve didn’t do something nefarious to get there, let me be clear. They run overall what most consider a good operation. But saying “they’re so helpful and expand your reach” is like saying “google search helped expand my business’s reach so much” when the reality is if you can’t be found on google you practically don’t exist due to their dominance in search.
TL;DR: Choosing not to be on steam unless you’re on console or a major AAA game is choosing not to exist. And sometimes I worry what kind of company we’ll see in the future if they don’t maintain their company culture/philosophy down the line.
Edit: see the defensive responses for my point 🤷♂️
But they do give you an advantage. If steam didn’t exist at all, without a comparable replacement, it would not be possible for you to move a real quantity of units at all. The market they provide has massive value, and their market share is a product of genuinely being far and away better than any alternative.
People don’t refuse to buy games on Epic or Origin or Uplay just because they need everything in one place. It’s because all of those platforms are so much worse that they degrade the experience of games purchased through them.
That’s highly speculative. But again, I like valve and think steam is beyond a net good. We need to be asking these questions though. Market dominance is a risk in any hands.
You can’t discount the fact that if you are not on Steam then your game basically didn’t release on computer. You can’t just hand wave away that factor. It’s baked in.
Again, that’s because every other way to distribute games is terrible.
And it doesn’t really matter, because any sales you actually drive yourself you can give them 0% of, with free steam keys. Sales through their storefront are inherently partly driven by their value add.
I am not arguing about why the market is the way it is, it’s not relevant.
I am saying regardless of how we got here, valve controls the PC game market, and that will always be a liability no matter who is in control. We have to be sober about this.
This is an anecdote, but it is also absolutely not speculation. I won’t install Epic, I avoid most AAA launchers/required accounts, prefer GOG, and get most of my games on Steam. Epic and many other studio launcher apps are hostile to the consumers or just a royal pain to use. I have a couple Sony games. Why should I have to be online to play a 20-year-old single-player game that I bought through Steam? So now I check if they have that garbage before I buy them through Steam.
I think Steam could afford to charge less, but I don’t think most smaller companies could get a basic store up for less than they charge (and the big companies have the tools to determine if thos is saving them money), and that still doesn’t get you everything Steam brings to the table, consumer confidence being the most important.
30% is industry standard (although it is starting to change). Until recently, both Apple and Google took 30% cuts from their phone app stores. Numbers I can find for GoG range from 30%-50%. Epic games is like 12%.
30% seems rather high
but… when they handle payments, refunds, advertising (within their application) and game download costs (server infrastructure?), etc etc etc. it doesnt seem that crazy.
at least, for a lot of indie developers, not having to worry about those things, might easily be worth those 30%
I’d say it’s very reasonable. Steam is EXPENSIVE. If you know anything about bandwidth, it’s the insane cost. They don’t do many exclusivity deals, and they even let you sell steam keys elsewhere with 0 cut for steam without giving users a degraded experience.
For it to “even out” they’d only have to increase your reach ~50%.
They do way more than that. And they give you an inherent legitimacy that putting it on your own site doesn’t. It’s not just handling refunds; it’s the certainty as an end user that you’ll get one hassle free.
Without Steam (or another retailer with similar traits), selling an indie game would be closer to a pipe dream than really hard. In almost all cases (and this seems to apply even to AAA publishers as most of them come back), the 30% they’re taking is money you wouldn’t have without them.
I think there are a lot of people who weren’t around for, or don’t remember, how buying digital titles was before Steam got quite so popular.
It was pretty rare, and the overwhelming majority of indie games were released for free. There just wasn’t many good ways to get the word out, and most ways of taking payment were costly enough to set up that it was rarely worth trying to get some meager amount of pay if you were just a one man show with no external financial backing.
All of this is true but the ugly truth people don’t want to unpack is this is largely because over 90% of PC game purchases occur on Steam, meaning it’s not that they give you an advantage much as you’re nearly dead in the water if you aren’t on Steam unless you’re a AAA game made by a major dev. I’m sure they help as well but that market dominance means they’re essential more than anything.
Valve didn’t do something nefarious to get there, let me be clear. They run overall what most consider a good operation. But saying “they’re so helpful and expand your reach” is like saying “google search helped expand my business’s reach so much” when the reality is if you can’t be found on google you practically don’t exist due to their dominance in search.
TL;DR: Choosing not to be on steam unless you’re on console or a major AAA game is choosing not to exist. And sometimes I worry what kind of company we’ll see in the future if they don’t maintain their company culture/philosophy down the line.
Edit: see the defensive responses for my point 🤷♂️
But they do give you an advantage. If steam didn’t exist at all, without a comparable replacement, it would not be possible for you to move a real quantity of units at all. The market they provide has massive value, and their market share is a product of genuinely being far and away better than any alternative.
People don’t refuse to buy games on Epic or Origin or Uplay just because they need everything in one place. It’s because all of those platforms are so much worse that they degrade the experience of games purchased through them.
That’s highly speculative. But again, I like valve and think steam is beyond a net good. We need to be asking these questions though. Market dominance is a risk in any hands.
You can’t discount the fact that if you are not on Steam then your game basically didn’t release on computer. You can’t just hand wave away that factor. It’s baked in.
Again, that’s because every other way to distribute games is terrible.
And it doesn’t really matter, because any sales you actually drive yourself you can give them 0% of, with free steam keys. Sales through their storefront are inherently partly driven by their value add.
I didn’t say their success wasn’t due to offering a great product over a sea of bad ones. That isn’t relevant nor am I contesting it.
Of course it’s relevant.
It’s why the PC market is what it is.
I am not arguing about why the market is the way it is, it’s not relevant.
I am saying regardless of how we got here, valve controls the PC game market, and that will always be a liability no matter who is in control. We have to be sober about this.
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This is an anecdote, but it is also absolutely not speculation. I won’t install Epic, I avoid most AAA launchers/required accounts, prefer GOG, and get most of my games on Steam. Epic and many other studio launcher apps are hostile to the consumers or just a royal pain to use. I have a couple Sony games. Why should I have to be online to play a 20-year-old single-player game that I bought through Steam? So now I check if they have that garbage before I buy them through Steam.
I think Steam could afford to charge less, but I don’t think most smaller companies could get a basic store up for less than they charge (and the big companies have the tools to determine if thos is saving them money), and that still doesn’t get you everything Steam brings to the table, consumer confidence being the most important.
30% is industry standard (although it is starting to change). Until recently, both Apple and Google took 30% cuts from their phone app stores. Numbers I can find for GoG range from 30%-50%. Epic games is like 12%.