Some interesting industry news for you here. Epic Games have announced a change to the revenue model of the Epic Games Store, as they try to pull in more developers and more gamers to actually purchase things.
the vast majority of the money that valve makes comes from indie games, not big studios
This is definitely not the case. Big studios price their games higher and sell more copies. There are only a handful of indie games like Stardew Valley and Terraria that come close to being in the same spot of the bell curve. Most of Valve’s money comes from microtransactions in the longest-running live services and the biggest games of the year.
Ah yeah my bad its the number of sales where indie games win. In terms of money its almost 50/50 tho. People are sick and tired of expensive garbage games and that shows in the drastic changes in revenue from 2023-2024.
Ofcourse if you include in game costs, then it probably changes again.
People are sick and tired of expensive garbage games and that shows in the drastic changes in revenue from 2023-2024.
Be careful not to make the data fit your conclusion. Anecdotally, I’ve observed a similar sentiment, but for one thing, AAA releases have slowed down due to long development times, so there just aren’t that many of them in a given year. For another, we know that, by a wide margin, most time spent gaming is only on a handful of mainstay games that first debuted years ago, like Counter-Strike 2, Grand Theft Auto V, Fortnite, Minecraft, etc. Plenty of those aren’t on Steam, but the same concept applies to the games that top the Steam charts.
My go-to is GoG, but I definitely want Steam to lose some market share in favor of literally anybody else. I will worry about moving that extra share towards GoG when the market isn’t a full on monopoly.
But hey, yeah, stop using Steam and go to Gog whenever you can. You heard it here first. DRM-free software should be your first choice.
GOG and Itch are both great services. Epic is run by a psychopath and working hard to create the walled garden they themselves have been railing against. That’s why EGS can go to hell but I’ll gladly buy from the others.
I do not know or care about the personality or intentions of any of the executives in these corporations. Pick your variety of libertarian tech billionaire, I don’t intend to root for any of them.
This is a Godzilla “let them fight” moment where in my ideal scenario none of these people would have this amount of money or control over other people’s work, but since that’s the world we live in, them being in competition benefits me down the line, so I don’t want any one of them to get away with the whole thing.
Reminder that the world’s biggest money makers in PC gaming are not on Steam.
Minecraft isn’t (it’s on Microsoft Store and a stand-alone web store), Fortnite isn’t (it’s EGS exclusive), Roblox isn’t (its own store), League of Legends and Valorant aren’t (Riot Launcher and EGS),…
And that’s a fantastic showcase of the bar you need to hit to not be effectively toiling in the Steam mines. Assassin’s Creed, FIFA, Call of Duty? Not big enough. Still have to deal with Steam.
It takes being significantly bigger than the entire Epic store to even consider not doing Steam on PC. And none of those is even close to having a viable platform for third party releases outside of Epic, which is perhaps the last one standing on that front and currently not managing to get a foothold. And judging by the rabid fanboy backlash anytime they try to do something nice to attract devs, not even finding a path towards one at any point in the future, either.
That’s a bad look for competition on the PC market. There aren’t that many Fortnites or Minecrafts coming in the future. Gaming investment is drying up and gaming is becoming a cash business, rather than an investment business. And the cash flows to Valve.
Assassin’s Creed, FIFA, Call of Duty? Not big enough. Still have to deal with Steam.
They don’t have to. OK, maybe Microsoft has to because they are the actual monopolist and making the Activision Blizzard franchises available on storefronts other than Microsoft’s own is to keep the watchdogs away.
Also, none of the franchises are exclusive to Steam, so Steam has no monopoly.
It takes being significantly bigger than the entire Epic store to even consider not doing Steam on PC.
That sentence makes no sense. Fortnite is exclusive to EGS, therefore it cannot be “significantly bigger than the entire Epic store”.
Steam has no policies that forbid offering games on other stores, Epic has policies that makes certain games timed exclusives to EGS.
What makes EGS unattractive compared to Steam is the simple fact that Epic chooses to most prominently display their own games on EGS. Valve does front page banners, fests, that window that opens with every Steam launch, etc. and goes out of their way to make everything from big launches as well as solo dev indie games discoverable.
Epic has it in their own hands to make EGS more than the Fortnite launcher. They could promote other EGS games inside Fortnite but they don’t. They host concerts inside Fortnite but nothing to promote 3rd party EGS games, for examle.
That’s a bad look for competition on the PC market. There aren’t that many Fortnites or Minecrafts coming in the future. Gaming investment is drying up and gaming is becoming a cash business, rather than an investment business. And the cash flows to Valve.
USD 45 billion overall PC gaming revenue and all of Steam combined is 8.6bn. “And the cash flows to Valve”? Sure…
Oh, yeah, they have to. All of those examples are from publishers that tried to have their own platforms and then could not sustain that option and had to come back to the Steam platform.
So they’re not big enough.
As for Fortnite being bigger than EGS… well, yeah, it is. So much so that Epic themselves report on the two separately. And Fortnite makes more money than every other game in there put together.
10 Bn for Steam revenue this year, by the way. They are the only thing growing in the space. Everything else pulling money is aging games, 5-10 years old, that have a fossilized playerbase mobile-style. The money flows to Valve because Valve doesn’t need to make ANY games at all, pay for exclusives or do anything else. Especially since the fanboys paint any attempt at competing against a monopolistic actor as an anticompetitive act, somehow.
So still far off anything resembling >50% market share on PC. Good to know they’re still not a monopoly.
The money flows to Valve because Valve doesn’t need to make ANY games at all, pay for exclusives or do anything else.
So Valve is not engaging in any anti-competitive behaviour as well as pumping resources into Linux support to break the Windows hegemony? Great!
Especially since the fanboys paint any attempt at competing against a monopolistic actor as an anticompetitive act, somehow.
Yeah, these people are very strange. I mean, it’s a fact that Microsoft is the convicted monopolist because of the grip Windows has on the industry, the same Microsoft that bought Minecraft, Bethesda, and Activision Blizzard King to become the world’s single biggest games publisher and their Windows-exclusive PC GamePass is also growing (surely at least partially thanks to Microsoft “continuing to misuse its Windows operating system monopoly” to promote their other services).
And yet, there are people who put the sole Linux supporter in the same corner, as if that company had anything approaching Microsoft’s market power. Not even the EU thought Valve was important enough. Microsoft, Apple, Google, ByteDance, and Meta are Digital Market Gatekeepers, not Valve.
But nobody is complaining about Steam OS having a monopoly on PC OSs, the issue is with Steam having control of the PC gaming market.
I am exhausted by humanity’s ongoing inability to hold more than one idea in their heads at once. The world isn’t made of good guys that play for your team and bad guys that play for the other team. Can people be adults for one moment at some point this century? Holy crap.
Steam can ABSOLUTELY have a dominant position in one market while attempting to erode a competitor’s dominant position in another market.
Microsoft has a dominant position in the OS market that should be eroded by both competitors and regulators.
That dominant position includes having about 75% of the PC OS market.
Steam has about 80% of the PC digital distribution market for new releases.
One of those facts isn’t tolerable just because you’ve decided to make supporting a specific alternative in the OS market your entire personality. That’s not how that works. Microsoft should be held back from the areas where it has dominance (and that includes keeping them on a very tight leash when it comes to aggregating more studios under their gaming division) and Steam should be kept on a tight leash when it comes to their dominant position on the gaming digital distribution space. Ideally by having other competitors not only survive but thrive and grow to prevent regulators having to intervene in the first place.
Those two ideas are, in fact, entirely consistent with each other with no contradiction. I am imploring social media dwellers to stop treating every issue as a football match or get off the Internet.
For generic SteamWorks integration, there already exists a open source DLL called Goldberg Emulator. If publishers opt for real DRM, the games are not available on GOG anyway.
Also, downloading and backing up the games have to be done by yourself before the storefront goes bust. Distributing GOG games outside of GOG is a copyright violation, unless the copyright holders explicitly allow it.
So, to sum up: You can backup DRM-free Steam games and make them work with little effort.
If it free, there is an incentive to release quantity and not quality, it could become a spam problem. I am all for having a lower percentage though, but 0 could be a problem.
But hey, yeah, nobody is advocating a 0% cut for Valve. Epic is doing this because they need to attract developers and most of their money comes from Fortnite anyway, so it’s something they can try.
But Valve has a looot of ground between 0 and 30% and a lot of ways to give back to the developers that built their empire. And I don’t think starting by treating smaller devs as well as they treat major corporations would be a bad start at all.
From the POV of steam, you want the big releases to happen on your platform and take your cut even if its a bit smaller. In the end people change platforms for the big releases. Its the main reason I haven’t fully switched to GOG yet, it doesn’t have the major releases I want (or gets them late like Kingdom Come Deliverance 2).
You can spread idealism, but I rather stay realistic.
You can’t simultaneously go “it is what it is” when Valve gives big games a better deal to secure their position and be mad that Epic gives games exclusivity deals. It just doesn’t follow. Realistically.
Cause that would probably get abused for things like money laundering, since Steam is open for everyone who wants to sell a game unlike Epic’s store where you get vetted. You can just set up a shell corp that releases shitty shovelware and buy the game from yourself with steam cards you bought from the store with your dirty cash. And then you’d get all your money back ready to be taxed and laundered.
Couldn’t you just like… sell those stolen gift cards on G2A, Kinguin and such instead? You wouldn’t have the 100 euro posting game fee + needing to have it checked and such.
I’m not talking about stolen gift cards. The goal of money laundering is to move dirty cash from the criminal underworld into lawful society. Selling stolen gift cards on G2A doesn’t help with that. You want to create proof for the tax man that the money you earn comes from a legitimate source. If you sell stolen gift card you don’t have a paper trail for where you have sourced those cards. It’s suspicious. And selling cards on G2A you buy with your dirty cash from a legit store is still suspicious since you still have to proof if the money you used to buy those cards was earned legitimately.
If you buy gift cards with your dirty cash at a store and then pretend to be a customer by buying your own game you have created a money paper trail for the tax man since your earnings will come from Valve with receipts and all and you don’t have to proof where and how your “customers” have bought those gift cards. And then once that money is taxed that money is earned legitimately.
You could buy stolen gift cards from another criminal but good chance stores report to their supplier if a batch of cards is stolen and then it gets reported to Valve. And Valve knows which numbers those are. If they see a game getting bought with cards from the same stolen batches and have almost no other sales there is a chance the game gets flagged automatically by their systems and they probably report it to the authorities.
You have given money laundering via making terrible games a suspicious amount of thought.
I mean, one could argue that this is on Steam to manage, and that the way to manage it shouldn’t be “we’ll just keep 30%”. It was Steam who spent an inordinate amount of effort and terrible half-assed attempts automating game curation so they could have fewer people looking at approving games the way other first parties do. If Valve wants to Uberify game distribution they have an onus on moderation and on protecting the developers using their platform.
But that’s irrelevant because nobody needs them to lower their cut to 0%. 20% would be great. 10% would be fantastic. Flipping the current order of things to give more money back to smaller games and keep more money from bigger games would be more than good enough. Whatever arbitrary bar you think would stop this entirely imaginary scheme they could meet and it’d still be an improvement.
Hell, I have never laundered money, but from what I hear out there 30% may not be enough to put a stop to that. That may be a decent return for some squeaky clean money out of Unreal asset flips. Should Valve set their cut to 50%? You know, in the interest of international security?
It’s not that strange a thing to think about. Steam partners have abused the system before creating a fuckton of games just for achievements, trading cards and emoticons. Also Banana
Which is entirely a result of Steam abandoning any human intervention on their curation system, first by trying to crowdsource it and when that didn’t work just opening the floodgates and implementing the lightest possible moderation, social media-style.
So okay, do they want to avoid exploits? Go back to curating the library. That’s how it used to work, it didn’t need to be an automated, hands-free process.
But if you’re going to let everybody upload to it then you are on the hook for the costs of moderation. It’s not a valid excuse to charge more for the privilege of being slotted against shovelware. It’s not a viable argument at all.
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Why do you want to keep “the big boys” happy?
I mean, if you’re Gabe then I get it. If you have a spare yacht call me, let’s talk.
But if you’re not, then… what’s the reasoning there?
Not me, but i do want steam to stay the main game platform, if the alternative is epic games. That means you want to keep big studios on the platform.
On the other hand the vast majority of the money that valve makes comes from indie games, not big studios.
This is definitely not the case. Big studios price their games higher and sell more copies. There are only a handful of indie games like Stardew Valley and Terraria that come close to being in the same spot of the bell curve. Most of Valve’s money comes from microtransactions in the longest-running live services and the biggest games of the year.
Ah yeah my bad its the number of sales where indie games win. In terms of money its almost 50/50 tho. People are sick and tired of expensive garbage games and that shows in the drastic changes in revenue from 2023-2024.
Ofcourse if you include in game costs, then it probably changes again.
Be careful not to make the data fit your conclusion. Anecdotally, I’ve observed a similar sentiment, but for one thing, AAA releases have slowed down due to long development times, so there just aren’t that many of them in a given year. For another, we know that, by a wide margin, most time spent gaming is only on a handful of mainstay games that first debuted years ago, like Counter-Strike 2, Grand Theft Auto V, Fortnite, Minecraft, etc. Plenty of those aren’t on Steam, but the same concept applies to the games that top the Steam charts.
My go-to is GoG, but I definitely want Steam to lose some market share in favor of literally anybody else. I will worry about moving that extra share towards GoG when the market isn’t a full on monopoly.
But hey, yeah, stop using Steam and go to Gog whenever you can. You heard it here first. DRM-free software should be your first choice.
GOG and Itch are both great services. Epic is run by a psychopath and working hard to create the walled garden they themselves have been railing against. That’s why EGS can go to hell but I’ll gladly buy from the others.
I do not know or care about the personality or intentions of any of the executives in these corporations. Pick your variety of libertarian tech billionaire, I don’t intend to root for any of them.
This is a Godzilla “let them fight” moment where in my ideal scenario none of these people would have this amount of money or control over other people’s work, but since that’s the world we live in, them being in competition benefits me down the line, so I don’t want any one of them to get away with the whole thing.
Reminder that the world’s biggest money makers in PC gaming are not on Steam.
Minecraft isn’t (it’s on Microsoft Store and a stand-alone web store), Fortnite isn’t (it’s EGS exclusive), Roblox isn’t (its own store), League of Legends and Valorant aren’t (Riot Launcher and EGS),…
Yeah.
And that’s a fantastic showcase of the bar you need to hit to not be effectively toiling in the Steam mines. Assassin’s Creed, FIFA, Call of Duty? Not big enough. Still have to deal with Steam.
It takes being significantly bigger than the entire Epic store to even consider not doing Steam on PC. And none of those is even close to having a viable platform for third party releases outside of Epic, which is perhaps the last one standing on that front and currently not managing to get a foothold. And judging by the rabid fanboy backlash anytime they try to do something nice to attract devs, not even finding a path towards one at any point in the future, either.
That’s a bad look for competition on the PC market. There aren’t that many Fortnites or Minecrafts coming in the future. Gaming investment is drying up and gaming is becoming a cash business, rather than an investment business. And the cash flows to Valve.
They don’t have to. OK, maybe Microsoft has to because they are the actual monopolist and making the Activision Blizzard franchises available on storefronts other than Microsoft’s own is to keep the watchdogs away.
Also, none of the franchises are exclusive to Steam, so Steam has no monopoly.
That sentence makes no sense. Fortnite is exclusive to EGS, therefore it cannot be “significantly bigger than the entire Epic store”.
Steam has no policies that forbid offering games on other stores, Epic has policies that makes certain games timed exclusives to EGS.
What makes EGS unattractive compared to Steam is the simple fact that Epic chooses to most prominently display their own games on EGS. Valve does front page banners, fests, that window that opens with every Steam launch, etc. and goes out of their way to make everything from big launches as well as solo dev indie games discoverable.
Epic has it in their own hands to make EGS more than the Fortnite launcher. They could promote other EGS games inside Fortnite but they don’t. They host concerts inside Fortnite but nothing to promote 3rd party EGS games, for examle.
USD 45 billion overall PC gaming revenue and all of Steam combined is 8.6bn. “And the cash flows to Valve”? Sure…
Oh, yeah, they have to. All of those examples are from publishers that tried to have their own platforms and then could not sustain that option and had to come back to the Steam platform.
So they’re not big enough.
As for Fortnite being bigger than EGS… well, yeah, it is. So much so that Epic themselves report on the two separately. And Fortnite makes more money than every other game in there put together.
10 Bn for Steam revenue this year, by the way. They are the only thing growing in the space. Everything else pulling money is aging games, 5-10 years old, that have a fossilized playerbase mobile-style. The money flows to Valve because Valve doesn’t need to make ANY games at all, pay for exclusives or do anything else. Especially since the fanboys paint any attempt at competing against a monopolistic actor as an anticompetitive act, somehow.
So still far off anything resembling >50% market share on PC. Good to know they’re still not a monopoly.
So Valve is not engaging in any anti-competitive behaviour as well as pumping resources into Linux support to break the Windows hegemony? Great!
Yeah, these people are very strange. I mean, it’s a fact that Microsoft is the convicted monopolist because of the grip Windows has on the industry, the same Microsoft that bought Minecraft, Bethesda, and Activision Blizzard King to become the world’s single biggest games publisher and their Windows-exclusive PC GamePass is also growing (surely at least partially thanks to Microsoft “continuing to misuse its Windows operating system monopoly” to promote their other services).
And yet, there are people who put the sole Linux supporter in the same corner, as if that company had anything approaching Microsoft’s market power. Not even the EU thought Valve was important enough. Microsoft, Apple, Google, ByteDance, and Meta are Digital Market Gatekeepers, not Valve.
But nobody is complaining about Steam OS having a monopoly on PC OSs, the issue is with Steam having control of the PC gaming market.
I am exhausted by humanity’s ongoing inability to hold more than one idea in their heads at once. The world isn’t made of good guys that play for your team and bad guys that play for the other team. Can people be adults for one moment at some point this century? Holy crap.
Steam can ABSOLUTELY have a dominant position in one market while attempting to erode a competitor’s dominant position in another market.
Microsoft has a dominant position in the OS market that should be eroded by both competitors and regulators.
That dominant position includes having about 75% of the PC OS market.
Steam has about 80% of the PC digital distribution market for new releases.
One of those facts isn’t tolerable just because you’ve decided to make supporting a specific alternative in the OS market your entire personality. That’s not how that works. Microsoft should be held back from the areas where it has dominance (and that includes keeping them on a very tight leash when it comes to aggregating more studios under their gaming division) and Steam should be kept on a tight leash when it comes to their dominant position on the gaming digital distribution space. Ideally by having other competitors not only survive but thrive and grow to prevent regulators having to intervene in the first place.
Those two ideas are, in fact, entirely consistent with each other with no contradiction. I am imploring social media dwellers to stop treating every issue as a football match or get off the Internet.
Naw, each time I buy on gog over steam I end up regretting it for some reason, usually related to modding or portability.
Gogs great, but has limitations. With steam everything works better.
Until it doesnt and your entire game library is done…
For generic SteamWorks integration, there already exists a open source DLL called Goldberg Emulator. If publishers opt for real DRM, the games are not available on GOG anyway.
Also, downloading and backing up the games have to be done by yourself before the storefront goes bust. Distributing GOG games outside of GOG is a copyright violation, unless the copyright holders explicitly allow it.
So, to sum up: You can backup DRM-free Steam games and make them work with little effort.
If it free, there is an incentive to release quantity and not quality, it could become a spam problem. I am all for having a lower percentage though, but 0 could be a problem.
You think the current cut Steam is taking…
… is preventing shovelware spam?
Have you been on Steam this decade?
But hey, yeah, nobody is advocating a 0% cut for Valve. Epic is doing this because they need to attract developers and most of their money comes from Fortnite anyway, so it’s something they can try.
But Valve has a looot of ground between 0 and 30% and a lot of ways to give back to the developers that built their empire. And I don’t think starting by treating smaller devs as well as they treat major corporations would be a bad start at all.
From the POV of steam, you want the big releases to happen on your platform and take your cut even if its a bit smaller. In the end people change platforms for the big releases. Its the main reason I haven’t fully switched to GOG yet, it doesn’t have the major releases I want (or gets them late like Kingdom Come Deliverance 2).
You can spread idealism, but I rather stay realistic.
Yeah, but I’m not in the POV of Steam.
I’m in my POV.
You can’t simultaneously go “it is what it is” when Valve gives big games a better deal to secure their position and be mad that Epic gives games exclusivity deals. It just doesn’t follow. Realistically.
Cause that would probably get abused for things like money laundering, since Steam is open for everyone who wants to sell a game unlike Epic’s store where you get vetted. You can just set up a shell corp that releases shitty shovelware and buy the game from yourself with steam cards you bought from the store with your dirty cash. And then you’d get all your money back ready to be taxed and laundered.
Couldn’t you just like… sell those stolen gift cards on G2A, Kinguin and such instead? You wouldn’t have the 100 euro posting game fee + needing to have it checked and such.
I’m not talking about stolen gift cards. The goal of money laundering is to move dirty cash from the criminal underworld into lawful society. Selling stolen gift cards on G2A doesn’t help with that. You want to create proof for the tax man that the money you earn comes from a legitimate source. If you sell stolen gift card you don’t have a paper trail for where you have sourced those cards. It’s suspicious. And selling cards on G2A you buy with your dirty cash from a legit store is still suspicious since you still have to proof if the money you used to buy those cards was earned legitimately.
If you buy gift cards with your dirty cash at a store and then pretend to be a customer by buying your own game you have created a money paper trail for the tax man since your earnings will come from Valve with receipts and all and you don’t have to proof where and how your “customers” have bought those gift cards. And then once that money is taxed that money is earned legitimately.
You could buy stolen gift cards from another criminal but good chance stores report to their supplier if a batch of cards is stolen and then it gets reported to Valve. And Valve knows which numbers those are. If they see a game getting bought with cards from the same stolen batches and have almost no other sales there is a chance the game gets flagged automatically by their systems and they probably report it to the authorities.
You have given money laundering via making terrible games a suspicious amount of thought.
I mean, one could argue that this is on Steam to manage, and that the way to manage it shouldn’t be “we’ll just keep 30%”. It was Steam who spent an inordinate amount of effort and terrible half-assed attempts automating game curation so they could have fewer people looking at approving games the way other first parties do. If Valve wants to Uberify game distribution they have an onus on moderation and on protecting the developers using their platform.
But that’s irrelevant because nobody needs them to lower their cut to 0%. 20% would be great. 10% would be fantastic. Flipping the current order of things to give more money back to smaller games and keep more money from bigger games would be more than good enough. Whatever arbitrary bar you think would stop this entirely imaginary scheme they could meet and it’d still be an improvement.
Hell, I have never laundered money, but from what I hear out there 30% may not be enough to put a stop to that. That may be a decent return for some squeaky clean money out of Unreal asset flips. Should Valve set their cut to 50%? You know, in the interest of international security?
That was a serious reach, friend.
It’s not that strange a thing to think about. Steam partners have abused the system before creating a fuckton of games just for achievements, trading cards and emoticons. Also Banana
Which is entirely a result of Steam abandoning any human intervention on their curation system, first by trying to crowdsource it and when that didn’t work just opening the floodgates and implementing the lightest possible moderation, social media-style.
So okay, do they want to avoid exploits? Go back to curating the library. That’s how it used to work, it didn’t need to be an automated, hands-free process.
But if you’re going to let everybody upload to it then you are on the hook for the costs of moderation. It’s not a valid excuse to charge more for the privilege of being slotted against shovelware. It’s not a viable argument at all.