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.
No, it is where it is because Valve decided it wanted to invest in it outside of it being a launcher/updater for Valve games.
And it’s not really the first. The first was probably Battle.net by Blizzard, which initially was a way to connect players (chat and join games) back in the mid-90s. It wasn’t a game sales/distribution service for many years, but it got there w/ the release of the dedicated desktop app in 2013 and had some of the core features that makes Steam special (chat and match making). In fact, I had the desktop app before I had a Steam account, which I created in ~2013 when Steam came to Linux (I switched to Linux in ~2009, and had played games on Windows for years before that). Blizzard was never interested in becoming a game distribution network, so Battle.net remained largely exclusive to Blizzard titles.
I wouldn’t have bothered w/ Steam if it didn’t provide value. I was fine managing games individually, and I bought many games from Humble Bundle and directly from devs for years before Steam became a thing. I only started preferring Steam when it provided features I couldn’t get elsewhere. These days, it provides so much value since I’m a Linux user, that I honestly don’t consider alternatives, because everything else is painful. Heroic launcher closes that gap substantially, so I’m actually considering buying more from GOG (outside of a handful of old games I can’t find elsewhere).
If another launcher provided better value vs Steam, I’d switch in a heartbeat. I use both Steam and Heroic, and I still prefer Steam because it has great features like controller mapping. But if, say, GOG supported the features I care about on the platform I use, I’d probably switch to GOG because I also care about DRM-free games. But they don’t, so I largely stick to Steam.