Comment by j_maffe
3 hours ago
Of course 30% seems reasonble to you, you're not the creator of the games. It's quite confusing to me that you're endorsing the side that has an insane ROI instead of the side that is sufferring greatly to make ends meet.
A 70% take would have blown the minds of developers pre-Steam. Retailers took 40% and were ruthless about shelf space and inventory. Distributors took 20%. Plus you had to actually make a box/CD/etc. They were lucky to keep 30% not pay it.
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.
The economy is not static. A good deal in the past is not necessarily a good deal in the present.
It still is a damn good deal. Steam abstracts a whole lot of messes. In ye olde times you as a game developer had to acquire a publisher for each country you'd plan on selling your game to deal with local distribution structures and laws, taxes, payments, update distributions, DRM and anti-cheat, user management...
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.
[1] https://news.ycombinator.com/item?id=40263518
You're implying that Sales, Marketing, and Distribution is not a valuable service by saying 30% is not reasonable. I work in the electronics industry selling components. Suppliers regularly give us 30% margin, far more on some products, despite the upfront cost of making a new microcontroller or FPGA being far in excess of the most expensive video games ever made, with our value add being, to be frank, much less than Steam. 30% margin is about average for distribution, be it food, minerals, cars, or any other industry.
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.
I'm endorsing my side. Not Steam's side, or the creator's side.
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.
Regarding the 30% cut. Developers can actually generate steam keys and publish them on third-party sites which can be redeemed by users on Steam. Developers then get 100% of the profit.
But they're only limited to 5000 keys. beyond that requires special approval, which is not given if the game is being sold more outside Steam than inside.
> Valve is seeking a balance.
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.