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.
if you don’t like a distribution platform taking 20-30% of the sale then don’t use that distribution platform
Excuse my frank speech but that’s absolute bollocks and lacks any understanding at all of how a monopoly works.
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?
Is there a monopoly though?
Other store fronts exist.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?
Sure but it means there is no other competition though
Not correct either. Do you think Google has no competition?
This is a whataboutism.
Is steam a monopoly and how?
If I don’t like what Comcast charges I don’t do a class action lawsuit.
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.
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.
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.
It‘s not about platform compatibility or difference in fees. It‘s about the necessity to go through Steam (at competitive prices) and bow to whatever they may come up with in the future. The generic danger of a monopoly.
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.
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.
Epic pays handsome sums for exclusives, can’t blame the devs for taking it. They go to Valve to not miss out on the gigantic market share cause it’s a monopoly. And I do complain about Nintendo and PlayStation exclusives ;)
But they could release their own installer like CD project Red and other studios do. They don’t want to miss out on the ease of the installer that enables a larger market share. That’s not a monopoly. Literally.
No. The vast majority of potential customer will only buy if it’s on Steam. This is not about features, it’s about market access.
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.
And this is how people will explain why upcoming technofeudalism is a good thing. Our new masters have earned it :)
Lots of new EU regulations specifically target scenarios like this because that’s in the interest of consumers. Governments should work for the people, not winners with the most money.
[edit] You’d think you’d get more people against big tech on Lemmy lol.
Maybe it’s just a bad take. Just a hurdurr big tech bad sticker on an argument doesn’t win it for you if your argument is crap.
A monopoly isn‘t good if the product is good. It‘s still bad.
Sorry, they didn’t gobble up existing infrastructure. Comparing them to telcos is just a bad argument.
Why? They lucked their way to owning the infrastructure and got paid handsomely for that already. What are the negative aspects of breaking up Steam that way? I can’t think of any. I provided plenty of benefits both to consumers and developers.
No valve means no steam controller, no proton compatibility layer (don’t tell me to use wine I was there already) no steam deck, no freedom to game on any PC OS I want.
You know nothing, Jon Snow.
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.
It is where it is because it was the first.
If tomorrow someone made a better Steam you’d still buy everything there because that’s where all your games are. Be honest with yourself.
Brother I already buy things on GoG lol.
Steam is great and all but ownership is far more important to me personally
Great! Not everything’s available there unfortunately. Some games release on Steam only even. So you probably are affected either way.
90% of people buy on Steam. And they do that because their entire libraries are on Steam.
Translation: agree with me or you are wrong.
Earth is round.
Off topic
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.
So is the issue that Valve kicks you off the platform if you sell your game cheaper somewhere else? That does seem a little troublesome. I don’t think Apple or Sony has those restrictions? Apple takes 30% as well, right?
Only if you are selling a steam key elsewhere, they ask you to treat them equivalently but that doesn’t mean you can’t do sales for your products on other platforms.
It’s a little weird cause it would be like buying an apple app on android to use on apple but apple doesn’t get the 30% anymore so they ask you to at least price it about the same so people don’t avoid buying from them completely.
Okay so if Steam takes 30% and Itch takes 5% then the same game could be sold for approx $64 on Steam and $47 on Itch and the developer would take the same-ish amount home? But if they priced them the same they would make more money from Itch 🤑
And if you sell Steam keys separately then the user would still go to Steam to download and Steam would make sure that it goes to one person’s library and a bunch of other jazz.