Despite facing increased competition in the space, not least from the Epic Games Store, Valve's platform is synonymous with PC gaming. The service is estimated to have made $10.8 billion in revenue during 2024, a new record for the Half-Life giant. Since it entered the PC distribution space back in 2018, the rival Epic Games Store has been making headway – and $1.09 billion last year – but Steam is still undeniably dominant within the space.
Valve earns a large part of its money from taking a 20-30% cut of sales revenue from developers and publishers. Despite other storefronts opening with lower overheads, Steam has stuck with taking this slice of sales revenue, and in doing so, it has been argued that Valve is unfairly taking a decent chunk of the profits of developers and publishers.
This might change, depending on how an ongoing class-action lawsuit initiated by Wolfire Games goes, but for the time being, Valve is making money hand over fist selling games on Steam. The platform boasts over 132 million users, so it's perfectly reasonable that developers and publishers feel they have to use Steam – and give away a slice of their revenue – in order to reach the largest audience possible.
The wolfire games lawsuit is so damn cringe.
No company is your friend, but there's a reason Steam is number 1. The reinvestment in the platform and breadth of features steam has is unrivaled.
Epic has been trying for nearly a decade now and their store doesn't even have 1/4 the features of steam.
I love GoG though. For me they offer something steam can't, installers for my games.
My view is if you don't like a distribution platform taking 20-30% of the sale then don't use that distribution platform. It's a free market and a free internet. Use Epic, GOG, or host it yourself
If I don't like what Comcast charges I don't do a class action lawsuit.
Excuse my frank speech but that's absolute bollocks and lacks any understanding at all of how a monopoly works.
E: It's so hilarious to watch the Lemmy idiots be like "lEaVe ThE mUlTiBiLlIoN dOlLaR cOmPaNy AlOnE!" when it comes to Nintentdo but when it's Valve, then it's totally cool for some reason.
Is there a monopoly though?
Other store fronts exist. They are usable and often sell the same games. It's not Nestle owning half the food options in every food store, this is whole foods, vs all the other grocery stores.
You can get game pass and stream your games and never own them past your subscription lasts.
Or the Microsoft game store which isn't great but exists. GOG gives you installers and has big games on it.
Fanatical, GMG, Humble Bundle, are all store fronts. You could even consider Nintendo and PlayStation to have their own game storefronts while needing their hardware.
Is Steam a monopoly?
Monopoly does not mean no other businesses exist.
Sure but it means there is no other competition though. That could be price collusion but epic takes a completely different cut amount and other stores have different prices for games.
Just because other definitions exist doesn't answer the question, it avoids it by saying something else entirely.
Is Steam a monopoly?
The PC is an open platform. Even more so with Linux. Steam doesn't force exclusivity, you're free to host your game on Steam for discoverability while also self-distributing or using other storefronts. Valve's 30% is a price that a studio chooses to pay, because they know that a ton of PC gamers like buying games on Steam.
If all you want out of a storefront is a payment processor, CDN, and possibly DRM, you can release on Steam, Epic, Itch, GOG, or all at once. You pick Steam (or Steam+others) instead of others because you know that enough PC gamers are willing to pay for your game on Steam, because they like Steam. Epic can tout its small cuts or exclusivity bonuses or "zero percent cuts on the first $x" deals, but game devs know that 100% of revenue on an Epic launch week is going to be a lower absolute number than 70% of revenue on a Steam one.
Hell, if Steam did lower their cut to undercut Epic (which they absolutely could do, especially since they don't have any shareholders and thus just need to be profitable instead of demonstrating YoY growth), that would be a more "monopolistic" move in the PC gaming space. Remember, the alleged monopoly is over devs, not users. As a dev, the only reason you'd ever consider Epic instead of Steam for your game is that generous profit-share ratio. Steam could remove that only advantage overnight if it wanted to "compete", and doesn't. Valve will settle for winning exclusively on the merit of "being a platform that doesn't suck, and hasn't sucked for 20 years, and doesn't have financial motivation to start sucking now". Because Valve isn't beholden to shareholder value, if they lowered their cuts to 10%, that ten billion in revenue would be closer to three billion... Which absolutely covers every employee's salary, the hosting and bandwidth costs of their CDN, and material costs for their hardware. Instead, they consistently reinvest in not just sitting there doing nothing and also not ever sacrificing user experience for number go up. Steam Machines and the Steam Controller could fail without bringing down Valve. The Index and Deck could be produced at scale and aimed at niche audiences because hey, they could afford a failure.
No its not. Its a fee they have to pay because they have no other option, because Steam is a monopoly. Even CDPR, who literally owns their own game store, lists their games on Steam, because there's no way they could ever be successful without it.
CDPR judges that selling on Steam is enough of a boost that it's worth the cost. Riot (for example) doesn't. If you think every game company or indie studio feels mandated to use Steam, that's a hugely consolebrained take. Nintendo has a monopoly. Want your game on Switch? Follow Nintendo's terms and list on Nintendo's store. Apple has a monopoly, challenged recently. Want your app on iPhone? Follow Apple's terms and list on Apple's store. Want your game on Windows PC? Upload an EXE somewhere. Sell a disc. Run your own launcher. Or license out to Steam/Epic/whoever.
The only reason you get more sales on Steam is because the PC gaming userbase overwhelmingly prefers Steam. Hell, I play Guild Wars 2, a 12 year old MMO that "launched" on Steam a couple years ago. You can still buy and play that game without any third parties getting involved at all, and always could. It doesn't have any Steam achievements, doesn't benefit from any Steam features, and has a decade old community in spaces other than Steam ones. ArenaNet decided that exposure via Steam recommendations was worth losing $x/player to list on Steam.
If Steam had an exclusivity clause, that'd be another matter entirely. As it stands, listing on Steam doesn't prevent you from also listing your game elsewhere or bypassing the entire storefront middleman scheme.
I literally just explained this in the comment you just replied to.
You can upload it wherever you want and create whatever launcher you want, you will be unsuccessful. Fucking EA did this for 8 years, failed, and went back to Steam. As did Ubisoft. You simply won't be successful without Steam. That's what a monopoly is.
Ah yes. Massively unsuccessful games like... checks notes League of Legends. World of Warcraft. Fortnite: Battle Royale.
The magic part of the PC is that if your independently distributed game does fail, you can still, after the fact, decide to slap it on someone's storefront in a desperate attempt for eyeballs - see Overwatch 2. Why not double dip? It only costs you hypothetical money you haven't made yet. Am I supposed to be sad that E fucking A failed to install their shareholder value store on my computer?
If you lose access to a vast majority of the market if you don‘t use a service, it’s a monopoly. Don’t defend monopolists.
Steam does nothing to prevent running non-steam games on any platform. Charge 20-30% extra on Steam and call it done.
Steam doesn't let you do that. This is literally what the lawsuit is about.
Sure. Not being able to sell literal Steam keys on other platforms for less on other platforms for less according to the terms is the same as being prevented from selling on other platforms for less at all, nevermind that Valve gets a 0% cut on Steam Key Sales made like so.
Also, there is no mention of said policy in either the OP article, nor the separate article about the lawsuit it links to.
That's a poor example, because in many markets, Comcast (or another cable provider) is the only option, or there's only one other option with much lower top-end speeds (e.g. DSL). So a class-action against Comcast may be a reasonable idea, since they're an actual monopoly in many markets.
The games industry is different. Steam does have a commanding share of the market, but there's no real lock-in there, a developer can choose to not publish there and succeed. Minecraft, famously, never released on Steam, and it has been wildly successful. Likewise for Blizzard games, like Starcraft and World of Warcraft.
Maybe a better comparison is grocery store chains? Walmart has something like 60% market share in the US, yet I have successfully been able to completely avoid shopping there.
The reason Steam is #1 is because they were first to the market and everyone’s so invested into it.
That’s why today’s business model is „dump VC money until you’re ubiquitous, once monopolised drive the prices up”. We see that with things like Just Eat / Glovo, Steam or YouTube.
Nah mate, Steam is just the best game platform on PC. A game has access to so many features like cloud saves, community, workshop, matchmaking when it comes out on Steam, while the users have access to user reviews, curators, guides, sales, bundles etc etc. Epic doesn't have most of those features. And yes, a game dev can go out of their way to create those features for their game, on Steam they don't have to. Epic had all the time in the world to implement even half of them, but they still haven't. GOG is an alternative because it offers something Steam won't, and it's been going great for them. Epic is just a bootleg version of Steam. Their only claim to fame is their free game giveaways, but even then you're stuck playing the game without the features Steam users have.
It’s easy to do that when you employ couple of hundred people while taking 30% cut of 90% of PC game sales.
Steam should be broken up as a monopoly that it is. Decouple infrastructure from the store, allow others to pay fair price for access to it and game prices would go down in an instant. That’s how telecom monopolies were broken up where I live with wonderful results. Console makers should allow alternative stores too now that they don’t subsidise hardware.
Oh come on, comparing Steam to telecoms is a bit of a leap. Nobody needs access to video games on a day-to-day basis. Video games are a luxury item at the end of the day.
Their breaking up also assumes that hosting video games for downloads is a thing only Steam can do. Steam hosting the game files and Steam as a service for the customer have little to no relation to each other. Steam, or anyone else for that matter, could just as easily use AWS. Breaking up Steam into many, smaller Steams might lead to lower prices, or devs will choose one, that one will become the dominant one, and we're back to square one.
The best way to drive prices down is competition. It's economics 101. Do not blame Steam for being successful, blame their competition (Epic in this case) for being inept. Epic was the VC baby everybody was banking on going toe-to-toe with Steam, but they couldn't even get basic shit like a cart or a wishlist working for far too long.
Steam's 30% cut is a different problem altogether. Yeah, it's probably excessive, and would ideally be tiered by sales. However, all the games (that I have seen) that released on Epic first, with their paid exclusivity, eventually came out on Steam. So what does that tell us about how impactful that 30% cut is. Steam's pre-existing userbase is a factor. Userbase they have, and maintain, due to their wide array of features. And, all those features Steam provides aren't free to maintain. They host the game on their own servers, they host all the user generated content on their servers, Steamworks matchmaking is ran by Steam. Game devs aren't just getting their game sold through Steam, Steam does much much more than that.
Sorry, they didn't gobble up existing infrastructure. Comparing them to telcos is just a bad argument.
I dunno about those lame features, I use Steam because AAA mostly gets exclusively released there on PC. It kinda sucks.
That's most likely just cause they enjoy the auto downloader, patch tools and anticheat software that they can bundle in.
GOG has installers for AAA games like Witcher and Baldurs Gate 3 because the developers were better about giving the option. Heck lots of AAA games on epic. We don't complain about PlayStation and Nintendo exclusives. Blame the developers for liking the easy features to only be on Steam. Ask them to change not Valve.
Steam has so many more features than any other platform.
First to market or not, that's why steam is number one.
None of its competitors offer the community, market, discussion boards, rating system, friend system functionality and overall reliability that steam does.
It has competition, just not on PC.
Epic is atrociously bad. From hampering system performance to a total lack of any of the above features, using epic sucks.
The Xbox app is somehow seemongly always broken despite literally being developed by the platform holders and with a shit load of cash behind it.
I don't love the idea of a steam monopoly but you gotta also give them their flowers, it's a fantastic storefront, arguably the best when considering all gaming platforms that exist even outside of PC.