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Tim Sweeney: Not sure why Steam is still taking 30%

If it isn't an assumption tell me where the border lies.
You can't.
The theory isn't an assumption, you artificially setting the border at xy% is.
Holy shit you can't possibly be this daft

The border is whatever the market is doing. If everyone is doing 30% then going well below 30% is predatory pricing, it's not fucking rocket science.
 

Clockwork

Member
Value is subjective.

Any publisher/developer that feels Valve/Steam takes too big of a cut by all means is not required to offer their titles on that service.
 
Psst - there is a reason i wrote "normal case".
If you are the next big thing you can find success outside steam.
For the average indie dev who is on it's own the situation is a "little" different.

If Steam's userbase was split up into five different companies the 'average indie dev' would still be in the exact same situation because either they rely on the people going to the big storefronts to get eyeballs on their games.
 

AHA-Lambda

Member
I'm not sure "Steam is a monopoly if you ignore every single major AAA publisher, a few indie titles, the entire console market and GOG" will hold up in an anti-trust suit but you do you.

Don't forget MMOs, Minecraft, LoL, and all of the major IP in the Asian market that aren't on Steam

God that monopoly, eh?
 
At Steam Dev Days Sweeney talked about the future of technology for a solid 30 minutes without saying anything concrete. I'm guessing after this and also that, he won't be back.
 

AmFreak

Member
So what you're saying is that the market leader lowering their sales cut below every competition's for no reason would not fuck over the competition entirely? lmao
The cut is artificially set.
It could be at 20,30,40 or whatever amount and you would make the same post.
Your "argument" can be made against any price cut ever made in every market.
 

LordRaptor

Member
They would still need a Steam storefront page though, right?

Nope.

I mean, it'd be pretty dumb not to, because then anyone browsing steam looking to buy your game definitely won't be able to, but if they wanted they could sell steam keys only via epicgames.com
 

Ascheroth

Member
Nope.

I mean, it'd be pretty dumb not to, because then anyone browsing steam looking to buy your game definitely won't be able to, but if they wanted they could sell steam keys only via epicgames.com
No, I'm pretty sure you can't sell Steam keys without selling your game on Steam. And you're also not allowed to have your Steam version cost 1000$ and sell your game for 30$ or something on your own site. Developers have to give Steam users 'fair prices'.
 
Fwiw, I think being able to take 30% of basically every transaction on a platform is ridiculous, whether its Valve or Apple.

I'm a little less vexxed about the practice on game consoles, since that hardware is often sold for a very meagre profit (that doesn't cover overall R&D costs) with the expectation it will be made up via software cuts. Apple doesn't have this argument with the iPhone, and the only thing Valve actually creates is the Steam client, which is hardly the pinnacle of software engineering.

No, I'm pretty sure you can't sell Steam keys without selling your game on Steam. And you're also not allowed to have your Steam version cost 1000$ and sell your game for 30$ or something on your own site. Developers have to give Steam users 'fair prices'.

I wonder, however, if you could get away with consistently selling a game at a 30% higher base price on Steam.
 

Pixieking

Banned
The cut is artificially set.
It could be at 20,30,40 or whatever amount and you would make the same post.
Your "argument" can be made against any price cut ever made in every market.

(GafMobile is so frustrating. Can't find ignore user button)

Context matters. If GOG, Origin, Humble all lowered their cuts, then the onus would be on Valve to lower their cut to stay competitive. But because Valve is the dominant market leader, if they lowered the price first it would be seen as a predatory pricing move to bull-out the competition.

Fwiw, I think being able to take 30% of basically every transaction on a platform is ridiculous, whether its Valve or Apple.

I'm a little less vexxed about the practice on game consoles, since that hardware is often sold for a very meagre profit (that doesn't cover overall R&D costs) with the expectation it will be made up via software cuts. Apple doesn't have this argument with the iPhone, and the only thing Valve actually creates is the Steam client, which is hardly the pinnacle of software engineering.

Steam Link. Steam Controller. Steam Machines. Steam VR. SteamOS. Steam API for workshop, cards, market, VAC.

Let's acknowledge Valve do more than just chuck out a client and nothing more.
 
Fwiw, I think being able to take 30% of basically every transaction on a platform is ridiculous, whether its Valve or Apple.

I'm a little less vexxed about the practice on game consoles, since that hardware is often sold for a very meagre profit (that doesn't cover overall R&D costs) with the expectation it will be made up via software cuts. Apple doesn't have this argument with the iPhone, and the only thing Valve actually creates is the Steam client, which is hardly the pinnacle of software engineering.
Valve does way more than just the Steam client lol
 

Shifty1897

Member
Comparing Steam to Visa or Mastercard is idiotic, but I do agree that a 30% cut on digital storefronts is killing developers and something needs to be done.

Side note, does GoG charge 30%? If I was GoG, I'd try and undercut Steam, maybe convince Ubisoft and EA their storefronts aren't worth it and killing potentials sales, and negotiate PC exclusivity. If that were to happen, it would create pressure on Steam to compete.
 

LordRaptor

Member
No, I'm pretty sure you can't sell Steam keys without selling your game on Steam. And you're also not allowed to have your Steam version cost 1000$ and sell your game for 30$ or something on your own site. Developers have to give Steam users 'fair prices'.

Yes you can and no you don't.

Although this is recently changed somewhat for certain developers, but its not exactly clear how.

e:
I wonder, however, if you could get away with consistently selling a game at a 30% higher base price on Steam.

If you sell your game on your own website for the same price as Steam sells it, you make 30% extra per sale.
This is also how websites like GMG and Humble can sell steamkeys cheaper than steam day one - they buy at a discount from the publisher, and then sell at a reduced price to undercut steam.
 

KHarvey16

Member
Comparing Steam to Visa or Mastercard is idiotic, but I do agree that a 30% cut on digital storefronts is killing developers and something needs to be done.

Side note, does GoG charge 30%? If I was GoG, I'd try and undercut Steam, maybe convince Ubisoft and EA their storefronts aren't worth it and killing potentials sales, and negotiate PC exclusivity. If that were to happen, it would create pressure on Steam to compete.

GoG is 30%. Everyone is 30%, except humble bundle which is 25%.

Boxed retail pays developers less.
 
30% is somewhat reasonable to run the entire infrastructure and ensure users can download and redownloaded these titles.

However, it is a big chunk of money knowing how small the pie will become when you add in publisher cut, etc.
 

sprinkles

Member
Steam Link. Steam Controller. Steam Machines. Steam VR. SteamOS. Steam API for workshop, cards, market, VAC.

Let's acknowledge Valve do more than just chuck out a client and nothing more.
People who don't use Steam features and hardware regularly have the tendancy to ignore the existence of these.
 
This thread reads like one about a console maker.
Lots and lots of people defending an effective monopoly with nonsense arguments.

"Sell elsewhere if you don't like it" - ...

"30% is standard, everyone takes 30%" - So if everyone took 50% it would be okay? What if they took 70%, 90%? By that logic it's ok as long as everyone does it.
That the big guys don't throw away money by lowering the cut without pressure should be obvious.

30% is more than console manufactures take/took as their physical cut.
30% is more than a retail store gets.
Steam takes 30% - for what?
They take 30% because they have the market power, not because of any service they provide.

They don't, so your hypotheticals are dumb and nonsensical
 
The 👏 30% 👏 cut 👏 is 👏 used 👏 for 👏 many 👏 other 👏 things 👏 than 👏 just 👏 paying 👏 for 👏 the 👏 bandwidth
 
People are up in arms about this 30%, but get this: if you're a writer and want to self-publish an e-book on Amazon, unless you're planning to stay Amazon-exclusive, all you get is 35% percent of the sale.
 

MUnited83

For you.
30% is more than console manufactures take/took as their physical cut.
30% is more than a retail store gets.
Steam takes 30% - for what?
They take 30% because they have the market power, not because of any service they provide.
In other news, you know hilariously nothing about what you're talking about.
 

Renesis

Member
People are up in arms about this 30%, but get this: if you're a writer and want to self-publish an e-book on Amazon, unless you're planning to stay Amazon-exclusive, all you get is 35% percent of the sale.

Thats fine though, cause it isnt Valve taking the cut /s
 

AmFreak

Member
(GafMobile is so frustrating. Can't find ignore user button)

Context matters. If GOG, Origin, Humble all lowered their cuts, then the onus would be on Valve to lower their cut to stay competitive. But because Valve is the dominant market leader, if they lowered the price first it would be seen as a predatory pricing move to bull-out the competition.
Yeah and this isn't true.
It depends on the circumstances, a market leader lowering it's price to the lowest doesn't automatically mean it's predatory pricing.
There can be endless reasons why a company may lower the price of it's product.

And this was my last post to you, because i don't need an ignore button to ignore you.
 

TVexperto

Member
This is what angers me so much about the gaming community. Imagine EA would have created steam and be the main online store for games and they would take such a cut and have bad support like steam (unlike the real ea origins which as amazing support), they would get so much shit from neogaf and all the other gamers. but because its steam its always right what they do no matter how greedy and anti consumer and anti dev they are.
 

Vark

Member
The 👏 30% 👏 cut 👏 is 👏 used 👏 for 👏 many 👏 other 👏 things 👏 than 👏 just 👏 paying 👏 for 👏 the 👏 bandwidth

Like Help Desk, Customer Service, and Testers to verify builds.
 

tuxfool

Banned
The 👏 30% 👏 cut 👏 is 👏 used 👏 for 👏 many 👏 other 👏 things 👏 than 👏 just 👏 paying 👏 for 👏 the 👏 bandwidth

Yup. This has to be quoted on every page, because people are dumb.
They handle:
- Credit card processing, including payment processing for every payment processor in every country
- Historically, giving you literally hundreds of thousands of front page impressions -- not sure if they still guarantee this but historically they did; I know they currently guarantee tons of patch update impressions on the front page
- Unlimited keys for external sales which they take 0% on
- All handling of refunds and chargebacks
- A marketplace for item content, which they only take 10% on
- A marketplace for trading cards, which are free for developers, where each sale they take 10% on
- Custom art and promotion in major sale events
- Hosting every download and redownload, all patches and patch downloads, all costs associated with patch certification
- Hosting preloads
- Closed beta tests and interactive branching for deployment
- Cloud saves and storage for all your users in perpetuity
- Coupons and targeted user contacts
- A pretty effective anti-cheat system, yours for free
- A community discussion forum and an unlimited supply of free labour to moderate it if you need it
- Purchase support in every major language
- Steam Days
- Matchmaking
- Leaderboards
- Several engine tech stacks, including the major tech stack for VR, completely free
- An audience of 100 million users

Of course you might say you can do without some of these and roll your own for some of these (also, when you discontinue your roll-your-own service 3 years from now because you can't afford it, I hope you enjoy an unending torrent of complaints for your customers because you demanded not to have to pay 30%). But the idea that "lol if u add up mastercard and my cdn costs steam ain't worth 30%" is stupid as hell.

The monopoly / monopsony arguments seem totally incoherent; maybe 6 or 7 of the the 10 biggest games on PC aren't on Steam at all.
 

patapuf

Member
This is what pisses me off so much about the gaming community. Imagine EA would have created steam and be the main online store for games and they would take such a cut and have bad support like steam (unlike the real ea origins which as amazing support), they would get so much shit from neogaf and all the other gamers. but because its steam its always right what they do no matter how greedy and anti consumer and anti dev they are.

EA takes a 30% cut on Origin....

and they don't offer half the features steam does. To devs or consumers.


Their online client is also even older than steam is. It was just really, really shit for the longest of times.

Also, Valve got plenty of shit for steam. Then it got better.
 
This is what angers me so much about the gaming community. Imagine EA would have created steam and be the main online store for games and they would take such a cut and have bad support like steam (unlike the real ea origins which as amazing support), they would get so much shit from neogaf and all the other gamers. but because its steam its always right what they do no matter how greedy and anti consumer and anti dev they are.
Yeah, because Steam wasn't fucking crucified at the start.
 
Valve may not offer the sexy stuff for PC gamers, but I remain gobsmacked how much they do, and how many services they maintain.

Well said. Valve created the digital PC games market as it exists today. Many developers are thriving on PC today because Valve invested in the PC platform and stuck with it. Just a few years ago many developers seemed ready to call time of death on PC gaming qnd move on. This was Epic Games' position on PC gaming seven years ago:

"If you walked into [Epic's Offices] six years ago, Epic was a PC company. We did one PS2 launch title, and everything else was PC. And now, people are saying ‘Why do you hate the PC? You're a console-only company.'"

"And guess what?" says Capps, "It's because the money's on console."

"We still do PC, we still love the PC, but we already saw the impact of piracy: it killed a lot of great independent developers and completely changed our business model."

"So, maybe Facebook will save PC gaming, but it's not going to look like Gears of War."

http://kotaku.com/5541266/epic-blames-pirates-for-console-first-development

So, yeah. Valve deserves every penny it gets.
 

KHarvey16

Member
Yeah and this isn't true.
It depends on the circumstances, a market leader lowering it's price to the lowest doesn't automatically mean it's predatory pricing.
There can be endless reasons why a company may lower the price of it's product.

And this was my last post to you, because i don't need an ignore button to ignore you.

Strange how you only allow for nuance and complicating factors when it supports your fantasy narrative.
 

MUnited83

For you.
This is what angers me so much about the gaming community. Imagine EA would have created steam and be the main online store for games and they would take such a cut and have bad support like steam (unlike the real ea origins which as amazing support), they would get so much shit from neogaf and all the other gamers. but because its steam its always right what they do no matter how greedy and anti consumer and anti dev they are.
So is this just a general Valve shitposting thread where idiots posts without reading anything at all?

It's also hilarious people trying to compare EA support with Valve. Origin barely had any fucking features or even fucking games. They don't need to invest all that much into support because there is barely any reasons to use it.
Meanwhile, I'm pretty sure Valve gets around 100x the number of customers contacting CS that EA does per day.
 

Heigic

Member
I read it as Mastercard only take 2% and bandwidth costs nothing so why is Steam taking 30%? Not Steam should only be taking 2%
 

ezodagrom

Member
This is what angers me so much about the gaming community. Imagine EA would have created steam and be the main online store for games and they would take such a cut and have bad support like steam (unlike the real ea origins which as amazing support), they would get so much shit from neogaf and all the other gamers. but because its steam its always right what they do no matter how greedy and anti consumer and anti dev they are.
http://store.steampowered.com/stats/support

I really doubt EA gets close to a hundred thousand support requests per day (though I guess most of the support requests Steam gets are refund requests, at least based on the last 24 hours).
 

KHarvey16

Member
I read it as Mastercard only take 2% and bandwidth costs nothing so why is Steam taking 30%? Not Steam should only be taking 2%

Which is an even worse argument than attempting to compare them. Steam is far more than a bandwidth provider and simple transaction processor.
 

jimmypop

Banned
I have a great deal of respect for Sweeney's technical abilities and his conservation efforts, but he jumped the shark a few years ago.
 

Rushster

Neo Member
You also need to factor in that some indie publishers will take an additional 30% for their marketing help. That doesn't leave a lot for the developer/
 
If you sell your game on your own website for the same price as Steam sells it, you make 30% extra per sale.
This is also how websites like GMG and Humble can sell steamkeys cheaper than steam day one - they buy at a discount from the publisher, and then sell at a reduced price to undercut steam.

Exactly. So if I charged Steam buyers 30% more, I'd be making the same amount regardless of where people shopped. I wonder if you could get away with that consistently (ie, not just during special sales), or if Valve would tell you to cut it out or stop generating keys.
 

orava

Member
People who claim that steam is a monopoly. How would you fix this situation? What should valve do about it?
 

ArtHands

Thinks buying more servers can fix a bad patch
I think Apple taking 30% of the cut from the App Store is more of an insult than Steam doing the same. On the PC, devs do atleast have other options. No choice on the matter when it comes to IOS, it's either the App Store or nothing.

They can bring their app over to Google Play store. who also takes the same amount of cut.

It costs money to develop and and sell consoles.

Yah and they also profit off from selling consoles.

While Steam offers feature and doesn't charge money for online gaming. I don't understand your point.

This doesn't make any sense at all. EA, Ubisoft or whatever pay their 30% to allow the console market to exist. Not so Sony can use the money to make a new movie or MS a new office.

you can't be serious.

Fwiw, I think being able to take 30% of basically every transaction on a platform is ridiculous, whether its Valve or Apple.

I'm a little less vexxed about the practice on game consoles, since that hardware is often sold for a very meagre profit (that doesn't cover overall R&D costs) with the expectation it will be made up via software cuts. Apple doesn't have this argument with the iPhone, and the only thing Valve actually creates is the Steam client, which is hardly the pinnacle of software engineering.



I wonder, however, if you could get away with consistently selling a game at a 30% higher base price on Steam.

What logic is that? Valve has to rely on 30% cut for income, while console makers make money through 30% cut, "meager" hardware sales (and online subscription fee). There are more ways for console makers to earn money but their 30% cut is justified because one of their money making channels produces meagre profit?
 
Fwiw, I think being able to take 30% of basically every transaction on a platform is ridiculous, whether its Valve or Apple.

I'm a little less vexxed about the practice on game consoles, since that hardware is often sold for a very meagre profit (that doesn't cover overall R&D costs) with the expectation it will be made up via software cuts. Apple doesn't have this argument with the iPhone, and the only thing Valve actually creates is the Steam client, which is hardly the pinnacle of software engineering.

Tim Sweeney alt account?
 

Stumpokapow

listen to the mad man
After the earlier discussion in the thread, I thought an interesting thought experiment would be to find out what Valve's effective cut would be for a variety of AAA games. By "effective cut", what I mean is assuming they take 30% for on-Steam sales and 0% for off-Steam sales. This, note, does not include the fact that they lose money on off-Steam sales because of e.g. costs of running Steam and people being able to download the game, just the assumption that they get 0% on the copies sold elsewhere.

Here's how I proxy this; Steam reviews indicate if a game was sold on Steam or not sold on Steam. Although it may be the case that off-Steam purchasers are more or less likely to leave a review than on-Steam purchasers, for the purposes of this thought experiment, let's assume they are equally likely. As a result, I can extract the percentage of sales that are on-Steam versus off-Steam and use that to calculate Valve's effective take. There are a few methodological reasons why this isn't quite accurate, but the errors seem like they are conservative in some cases and permissive in others so I'd say this is ballpark true.

All games aren non-F2P, released for at least 1 year, by different publishers, at different pricepoints, different genres, and sold on at least one external store:

Final Fantasy VII: 25.7%
Lego Star Wars The Complete Saga: 25.6%
Grand Theft Auto V: 25.5%
Five Nights at Freddy's: 24.9%
Dead Space 2: 24.1%
Max Payne 3: 23.9%
The Witness: 23.3%
RimWorld: 22.1%
The Walking Dead Season 1: 22.0%
Enslaved: 22.0%
Fallout: New Vegas: 21.3%
Football Manager 2017: 21.3%
Resident Evil 5: 20.9%
Cook, Serve, Delicious: 19.5%
Hitman: Absolution: 19.3%
Just Cause 3: 18.9%
Dead Rising 3: 18.9%
Dark Souls II: 18.5%
Middle-Earth: Shadow of Mordor: 18.4%
Burnout Paradise: 18.2%
The Evil Within: 17.1%
Napoleon: Total War: 14.8%

The median of that list is around 21%. So perhaps the people arguing "Why doesn't Valve take 20%" might observe that Valve does, in fact, take 20% under real world conditions.
 

Pixieking

Banned
It's honestly impressive how the thread managed to get worse as time went on.
It's an issue with Valve/Steam threads. People push a narrative, ignore what's been happening recently, work off old info, use incorrect terms, ignore posts or entire pages...

This actually went better than some past Steam threads. :/
 
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