Man it’s a shame the Epic store sucks so so bad. I’d love to give developers a bigger cut. Steam is amazing but taking a 30% cut is a bit insane.
Still, having to struggle with the Epic launcher… oof. GOG’s isn’t great either but it beats the hell out of Epic still.
30% has been industry standard across any digital storefront until Epic found out they couldn’t beat steam by just paying for exclusivity deals. Then they decided to go down this race to the bottom strategy.
Steam is good because of that 30%.
Firstly, data transfer and storage isn’t free and is an ongoing cost for Steam even after purchase. How many times can you think that you installed a game, then deleted it and ultimately downloaded it again—Steam doesn’t get any more money, but that costs them. They could have done all the limited number of downloads or transfer speed limiting shit that used to be more common.
The profit they make on top goes straight back into Valve. They are a private company without shareholders to please and pay dividends to. This has allowed them to keep reinvesting into Steam and making it the best experience for the consumer they can—they’ve been rewarded with a load of goodwill and market share following that. You can guarantee that we wouldn’t have proton or the steam deck without the money valve made from steam sales.
Epic doing this is just another attempt to try and tempt developers to choose their store and not list on Steam. They have no interest in actually improving their offering, their only strategy is to try and find ways to put Steam users at a disadvantage and hope that people go “well I guess I’ll go for it on epic if I have to”. They don’t have any problem getting companies to list their games on Epic, this is 100% about manipulating developers to not list on Steam.
GoG is the alternative to Steam, and offers something that benefits consumers to compete with Steam in DRM free games.
Friends don’t let friends reward Epic for anti-consumer business practices.
Hey don’t mistake that comment for a defense of Epic. I am a fan of Steam in general (in so far as I can be regarding “license selling” companies.) I think Gabe did many great things for game distribution. I’m working on an indie game myself and if it ever gets to the point that I can release it, it will be on Steam no doubt. I do dread the day Gabe has to pass on the torch though.
Didn’t Steam essentially create the “standard” for 30% price point for digital distribution in the first place? While a 30% margin makes sense for physical retail, it’s never made sense for digital distribution.
If they created the problem in the first place, then isn’t that actually an issue?
I’d argue it makes more sense for digital distribution, once the sale has been made in a physical store, there’s no ongoing cost for them.
A digital storefront has the ongoing cost of downloads and updates, as well as the distributed storage costs (Steam has many copies of games all over the world to mean downloads are quick)
Data transfer costs back in the mid 00s mean that every install of a game like HL2 cost them a dollar or so (A quick Google suggests they might have paid a couple of cents a gigabyte, but they may have had a better deal given the volume of data). If a user ever uninstalled and reinstalled more than a couple of times (a lot more common back then with the limited storage everyone had), and couple that with ongoing update transfer costs then most of the profit from a full price sale could easily be gone, let alone if the game was bought with a discount as is very common. If they never made any profit from the sales, Steam never makes it past its awkward years.
Data transfer is definitely cheaper these days, but then games are bigger and they probably spend a lot more on datacenter space than back in the day
The sheer data transfer happening is insanely costly and is not something people think about. Valve could certainly tweak their cut for small developers in sone way, but they arent just pocketing 30%.
A physical storefront has to deal with asset depreciation however. A product can sit on the shelf and reduce in value as it ages, there is no such thing with digital distribution.
Based on estimates, and various reports, leaks etc. since they aren’t a public company… Steam makde an estimated $10.8 Billion in 2024. They made $780,000 per employee as of 2018 based on an internal report, more than nearly every other company on the planet. They’re not spending anywhere near that on operations.
Surely the sales are an equivalent there? Both ultimately mean the total price goes down and the store’s cut goes down accordingly.
Don’t get me wrong, they’re definitely profiting these days. $11bn is a massive amount of revenue* for a company with the number of staff they do. But Steam are going to have disproportionately high datacenter costs compared to most other companies. As a rough comparison: Watching an hour of netflix at HD quality is about 1GB of transfer or so, Call of Duty is something like a quarter of a terabyte. Someone who downloads call of duty once would have to watch 250h of netflix to cost them the same—and Netflix is funded by subscription.
Then remember they’re likely paying their staff very well, I would not be surprised at all if well over half of their revenue just goes to operational costs before any reinvestment.
*Checked the figure was revenue and not profit.
Also killed physical media for PC games, carving out a near monopoly for themselves.
Eh, I would argue that the expansion of broadband internet and the increased expectation of instant gratification by consumers made it a perfect time for Steam’s expansion. The death of physical media is a side effect of the ability to near instantly download anything you want.
By offering a far better experience for the vast majority of people. Like how DVDs killed VHS, where some people who couldn’t afford to upgrade were left behind.
Simple just use short term oriented goals because that’s what the company is focusing on. Steam was always long term oriented from the beginning Gabe said CD less gaming.
I do wonder just how much a policy like this would effect Valves bottom line though.
This would be pretty amazing for small studios.
Steam is amazing because of that 30%. That money goes into features that attract users which in turn brings publishers.
No other store has invested so much money on their platform. If you take that 30% off, you defund development.
That said, Steam has different percentage tiers for different amounts of sales. That could obviously be better or refined to give indies a better chance.
But I’m more than happy when Steam takes big chunk out of Rockstar, EA and Ubisoft for example.
The tiers work in the opposite direction though, only huge titles will likely qualify for lower % takes while indies barely scraping by are getting hit for the full 30%.
Again this is only a minor point of criticism, I love valve in general. But man it would be so easy to add something like a “15% on the first $50.000 in sales” exception, wouldn’t cost Valve all that much and would help small indie teams immensely.
I’d love to give developers a bigger cut.
Sure, but this just gives the publisher a bigger cut, developers and gamers will see absolutely no difference, as usual.
Just curious what issues you’re having with the Epic store. I’ve bought a few games now and thought the process was pretty smooth.
Main problem: incredibly slow/unresponsive. Clicking things doesn’t give good visual feedback and can take forever for the underlying webpage to load/reload.
It’s designed as a webshop first and game library second (third, fourth?) Unintuitive UI, hard to search, hard to categorize, poor feedback on what’s being downloaded and why. Basically every quality of life feature from Steam is missing.
But to be fair it’s been a few years since I opened it. Might have improved a lot since then. I use Heroic these days. Also not amazing but at least it’s open source.
Epic sucks so bad they have to bribe both the gamers and the developers to use it.
Also fuck Epic.
might have to reinstall and see how many more of my free games have magically disappeared.
Ah yes. Epic, store that gave Hell Let Loose for free in January and the community is still recovering.
Imagine Mahjong matches constantly visited by new players that sit down, dont say anything, flip the table and shout at you for losing.
I wish Etsy would follow suit.
