It says Valve “forces” game publishers to sign up to so-called price parity obligations, preventing titles being sold at cheaper prices on rival platforms.
Ms Shotbolt says this has enabled Steam to charge an “excessive commission of up to 30%”, making UK consumers pay too much for purchasing PC games and add-on content.
This is actually the norm on a lot of platforms unfortunately. Apple. Google Play. Not at all unique to Valve.
Just because it’s the norm doesn’t mean it’s not excessive. In contrast, Apple’s implementation of a 30% cut is even worse, since with an iPhone you can’t just install an app from another source (and even when you can in the case of the EU, there are recurring costs for doing so). Since Steam accounts for the majority of PC video game sales, with AAA titles only not releasing on it when they have a clear financial motive not to, Valve’s use of a price parity clause effectively makes it the arbiter of what the industry standard markup on PC should be.
Forcing you to sell at the same price as on steam when customers will be downloading from steam servers anyway is not sketchy but very fair.
As a developer you could set the game price on steam to a high number and sell keys on your own site for cheaper. Anyone who buys a key then used steam resources to download it. The dev keeps the 30% since its not a sale through steam. Yeah id like free file hosting with terabytes of bandwidth too please.
If you sell the game yourself and provide the files, you can set lower prices. This is fair and valve doesn’t restrict that.
There was a indie dev, the Spiderweb games guy, who refused to use Steam for years and he sold his games on his website. I think it was from like 2008 all the way to 2022. Refused to give Valve a cut.
Then he finally released it on Steam and he wrote a blog post how his niche games sold extremely well and regrets leaving so much money on the table for years.
That 30% cut is also done on the Xbox and Playstation stores. I would assume Nintendo does the same thing.
It also sounds like Valve’s price parity agreement only applies to Steam keys. So, if a developer or publisher wanted to provide the game through their own storefront or on another third-party platform then they could charge whatever they wanted.
As for the 30% cut being excessive, I don’t know if it is or not, but storing data at the scale that Valve does costs a lot of money, not to mention the costs associated with ensuring the data’s integrity and distributing the data to their users all over the world at reasonable speeds. In all likelihood they are running multiple data centers on multiple continents with 100s of petabytes of storage each with some extremely high speed networking within the individual data centers, between the data centers, and out to the wider internet. Data hosting, especially for global availability, is damn expensive.
As I mentioned in another thread, if their running costs were close to the revenues they make then their owner wouldn’t be a multiple yachts owning billionaire.
Their cut is a %, which means that as games become more expensive they make more money. But their running costs actually go down as they improve their tech and code.
An internal memo was made public and they make more revenue per employee than Microsoft.
We’re overpaying for games but people just got used to it.
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This is actually the norm on a lot of platforms unfortunately. Apple. Google Play. Not at all unique to Valve.
Just because it’s the norm doesn’t mean it’s not excessive. In contrast, Apple’s implementation of a 30% cut is even worse, since with an iPhone you can’t just install an app from another source (and even when you can in the case of the EU, there are recurring costs for doing so). Since Steam accounts for the majority of PC video game sales, with AAA titles only not releasing on it when they have a clear financial motive not to, Valve’s use of a price parity clause effectively makes it the arbiter of what the industry standard markup on PC should be.
Taking a cut isn’t a big deal, but effectively forcing price fixing seems much more sketchy to me
Forcing you to sell at the same price as on steam when customers will be downloading from steam servers anyway is not sketchy but very fair.
As a developer you could set the game price on steam to a high number and sell keys on your own site for cheaper. Anyone who buys a key then used steam resources to download it. The dev keeps the 30% since its not a sale through steam. Yeah id like free file hosting with terabytes of bandwidth too please.
If you sell the game yourself and provide the files, you can set lower prices. This is fair and valve doesn’t restrict that.
What about setting lower prices on other stores like GOG or Epic Games?
There was a indie dev, the Spiderweb games guy, who refused to use Steam for years and he sold his games on his website. I think it was from like 2008 all the way to 2022. Refused to give Valve a cut.
Then he finally released it on Steam and he wrote a blog post how his niche games sold extremely well and regrets leaving so much money on the table for years.
I tried to find the blog post but no luck.
That 30% cut is also done on the Xbox and Playstation stores. I would assume Nintendo does the same thing.
It also sounds like Valve’s price parity agreement only applies to Steam keys. So, if a developer or publisher wanted to provide the game through their own storefront or on another third-party platform then they could charge whatever they wanted.
As for the 30% cut being excessive, I don’t know if it is or not, but storing data at the scale that Valve does costs a lot of money, not to mention the costs associated with ensuring the data’s integrity and distributing the data to their users all over the world at reasonable speeds. In all likelihood they are running multiple data centers on multiple continents with 100s of petabytes of storage each with some extremely high speed networking within the individual data centers, between the data centers, and out to the wider internet. Data hosting, especially for global availability, is damn expensive.
As I mentioned in another thread, if their running costs were close to the revenues they make then their owner wouldn’t be a multiple yachts owning billionaire.
Their cut is a %, which means that as games become more expensive they make more money. But their running costs actually go down as they improve their tech and code.
An internal memo was made public and they make more revenue per employee than Microsoft.
We’re overpaying for games but people just got used to it.
Still shitty. No need to defend it just because it’s valve.