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this post was submitted on 11 Jun 2024
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...what? Yeah, 30% is the standard when there are higher costs and higher risks. Why would it not follow that Steam using the same percentage - with lower costs and none of the physical-based risk - is simply greed?
If you look at the overall cost of running a platform though, especially one that does several things, you can see where that 30% becomes viable.
A few things to highlight are, long-term storage and availability of purchases. There is not a single game I have bought on Steam in close to 20 years that I can't still download and play to this day. Many of those are games that are no longer available for sale on the storefront yet valve as a content provider keeps them available to me and likely will in perpetuity.
There's an argument to be made that storage is cheap but they are also storing other people's things that are no longer generating revenue for them. Also, they are providing the bandwidth for us as users to download those games whenever and as many times as we like without concern for how many copies of title sold or who the initial publisher or developer was.
When you look at something like a console provider such as Nintendo or Microsoft who will completely shut down legacy stores, it makes the value of valve taking a unilateral 30% all the more attractive. Anything I buy on Steam I will be able to download and play in perpetuity. That 30% goes to making sure this isn't just for big-name or the current hot shit. This is for everything ever put on their platform.
Sure, in a vacuum 30% seems like a lot but when you consider the overall maintenance costs and the fact that they have seemed to be pretty pro-consumer all along, The intrinsic value in what they're offering becomes a lot easier to see.
I also wanted to add on a recent experience I had that highlights this even more so.
I was going through old archive drives and found a digital copy of "The Club" that I had purchased from Direct2Drive. I don't know if anybody remembers them or not but, they were one of the early digital storefronts that focused on PC digital downloads.
Anyways, I had the installer and my provided key in the directory so I installed the game and attempted to launch it only to be met with an activation screen. When I attempted to activate those servers had long since been decommissioned so I was dead in the water. Feeling that sting that one gets when they can no longer play something they legally purchased I started searching around for information on workarounds before I grabbed a crack. I found a thread from the company that had purchased the rights to all direct2drive purchases that had a workaround for doing the authentication through an alternate method.
I tried all the steps listed including performing a recovery process for an account that I had long since lost the login information for only to be met with a failed authentication once again. By this point I had invested close to an hour maybe an hour and a half of my time trying to get some shitty old game to work and decided it wasn't worth it.
I hopped over to Steam and saw that I was able to purchase the game directly from them for $5 and download it immediately without any need for additional authentication steps or trying to track down who had purchased the rights to give me access rights to the thing that I had purchased 15 years ago.
Sure, my one experience may be anecdotal but I think it highlights some of the greater issues people might not take into consideration when talking about what valve's cut is and what that represents to us as the users of the services they provide.
If their revenues were close to their running costs Gaben wouldn't own multiple yachts, stop defending a company that made a billionaire out of its owner while you're making less a year than he burns in a day on his boat.
I don't begrudge him running a successful business. And I didn't give a shit about who you feel I can or cannot defend. Lol.
If people can become billionaires from selling you stuff it means you got ripped off and overpaid, so yeah, you should be pissed.
Funny how you look at people's history and they all have anti rich comments in there, but when it's Gabe Newell? Oh he doesn't count.
Two issues, you can download and play your games in ‘perpetuity’ so long as Valve continues on the current operating model.
And Valve has not been particularly consumer friendly in the past.
They were found to be violating consumer rights in Australia at the very least and had to put a large notification on their storefront to disclose exactly what they had been wrong.
Valve were forced into providing a refund model and even then it often conflicts with consumer interest. Though admittedly bad actors will always try to abuse any refund model on digital products.
Most of the retailers mentioned in that article were also digital only and had the exact same or less risk. Steam certainly does a lot to try and get people's money, but they aren't just greedily fucking over Devs for that 30%, that is in fact industry standard.
I also have no doubt that Epic will enshitify itself and raise its rate closer to 30% after growing.
Its not one to one, but providing digital services is not exactly cheap. Data centers and servers take a lot of costs, both the electricity and salary for a team of ops engineers to keep it running smoothly. The building, conditioning, maintenance, insurance, storage, equipment. To ensure low lag and high download speeds you need several data centers with data caches in different regions of the world. If anything it is actually more risky. If a store closes the stock was already paid for by the the owner to the publisher. Zero risk for the publisher. If Steam goes down, it brings windows of opportunity for sales with it and not a dime is secured. They pay for the uptime and quality of service, not just processing a payment once and a download link with a shitty 72 h expiry time. People expect access to their digital goods 24/7 virtually forever. Steam provides it all with a myriad more of business and client facing services that a physical store would simply be incapable of providing.
It's still the market standard for digital stores, and if steam was greedy they could absolutely charge more with their market dominance.
For comparison audible has audiobook market dominance, and takes a 75% cut. If you agree to make your audiobook audible exclusive, they'll "only" take 60% of the profit, and many audiobook authors take that deal because getting an extra 15% cut on audible is worth more than the sales from other audiobook stores.
Audible is what you get when a greedy corporation has market dominance, in comparison Steam's cuts are very tame for all the benefits they give.
Or maybe they were as greedy as they could be without risking another company coming and taking their place, they also protected themselves against that by including a clause that prevents selling games cheaper on other stores so even if someone comes and tries to compete the devs are stuck because they need to choose if losing access to Steam's monopoly is worth it to be able to sell their game cheaper to end up with the same amount per copy in their pockets.
Is that even a real thing? Other stores sell games cheaper all the time. Even when buying steam games it's usually cheapest to buy the steam key from another store, because someone else will have it on sale for cheaper.
It's part of their contract, Wolfire Games is suing them for anti competitive practices.
That lawsuit is from 2021, and was thrown out later that year for failing to meet "the most basic requirements of an antitrust case,"
There's a new lawsuit, Gabe even has to show up in person.
https://www.gamesindustry.biz/gabe-newell-ordered-to-make-in-person-deposition-for-valve-v-wolfire-games-lawsuit
https://casetext.com/case/wolfire-games-llc-v-valve-corp-7
It was approved not long after the first one was dismissed, but (surprise surprise) Valve fans like to pretend everything stopped in 2021.