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

madjoki

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 that's case then they should be financing game too. Many just market by throwing free keys outthere or bundling game. you could do that yourself too (but it will hurt more than help)

Bonus: EU contries will take 19-27% for copies sold there. that's a lot.
 
You know how I know this is a Steam thread?

Look at all of the people who don't use Steam and don't know anything at all about Steam, chiming in about what Steam is.

The idea that the features of the platform are irrelevant to Steam's market position is some disengenous shit.

this this this this this

anyone who disputes this, again, doesn't use Steam, and doesn't know a damn thing about Steam

BUT AT LEAST THEY'D BE IN GOOD COMPANY HERE HUH

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.

I'm bringing this straight to the new page for you senselessly salty console gamers to totally ignore because this post isn't a AAA game read
 

LordRaptor

Member
You know how I know this is a Steam thread?

Look at all of the people who don't use Steam and don't know anything at all about Steam, chiming in about what Steam is.



this this this this this

anyone who disputes this, again, doesn't use Steam, and doesn't know a fucking thing about Steam

but benghazi the emails crooked killary the 30% the effective monopoly what if steam just closes suddenly one day
 

Durante

Member
This thread is embarrassing.
Every Steam thread is.

I guess in a way that tells you just how successful it is -- and, just maybe -- how much it irks some people when they defend a company for e.g. requiring an (increasing) monthly fee for online gameplay or cloud saves and others can point to Steam to show that this is, in spite of all the arguments, in fact not at all a necessity.
 

madjoki

Member
this this this this this

anyone who disputes this, again, doesn't use Steam, and doesn't know a fucking thing about Steam

Yeah. Especially very true 10+ years ago, when "competitors" were like you got 90 days to download and after that you got to rebuy unless you bought warranty upgrades to 1 years download time. Or try to charge monthly payment for multiplayer. etc.
 

Gamezone

Gold Member
That's fine. I prefer having most of my games in one library. I usually buy less EA games because of Origin.
 

SystemUser

Member
Valves cut might sound like too much, but they replace distribution, manufacturing, retail, and some publishing services. The price of entry for a indie has probably never been lower.
 
I'll parrot for the millionth time, the 30% is the same across all platforms. The App store, Amazon store, Google Play, PSN, XBL, and every other store take the same cut.

Steam is not a monopoly. I'll prove it. Let's play a game. Which of these games were sold on Steam?

highest%20grossing%20videogames%202015.jpg
 

Mooreberg

Member
Same as the consoles, same as the Epic Launcher, same as iOS, same as Android.
Yeah I don't see any controversy adhering to industry standards. Obviously, if you are like Blizzard or an Asian MMO company and have transaction histories with customers about as long as Valve's, you will keep rolling with that infrastructure. But I don't see the point of showing up a decade late to the party and then complaining that Valve acted first and spent the money to build a huge, very active customer base.

Kinda surprised somebody hasn't just tried an Amazon-On-iOS approach, where a web portal handles item purchasing, but I could see Valve not allowing it. Do starter packs for Gigantic bought on Arc (which Valve allows to be automatically installed) not show up in the Steam version?
I'll parrot for the millionth time, the 30% is the same across all platforms. The App store, Amazon store, Google Play, PSN, XBL, and every other store take the same cut.

Steam is not a monopoly. I'll prove it. Let's play a game. This is the list of the top grossing PC games of 2015. Which ones were sold on Steam?

highest%20grossing%20videogames%202015.jpg

I am guessing that Western markets is the topic on Sweeney's mind, unless that is exclusively what the image refers to? Blizz doesn't even handle their own distribution in China, which makes things a bit fuzzy.
 
But GAF tried to convince me that Steam doesn't have an effective monopoly on the Western market for the vast majority of devs.

How this thread makes me feel:

me & everyone in here who's ever actually used Steam
|
|
v

mom_son_scared_sad_room_talk.jpg


Isn't Spotify #1 in that platform?

:eek:

Well, I guess that makes Spotify the effective monopoly effective monopoly effective monopoly they're an effective monopoly effective monopoly they're an effective monopoly
 

jmga

Member
Maybe Tim should think what would happen if Valve drops their taking to, let's say, 10%.

Most developers would want people to buy their games on Steam instead of GOG, UPlay, Origin, Humble Store or whatever other store, and those other stores maybe can't afford lower their revenue to that extent.

So in the end Steam would gain even more power.

So maybe he should ask EA and CDProjekt why they are taking 30% instead of a lower value that could make their platform more attractive to developers.
 
How this thread makes me feel:

me
|
|
v

mom_son_scared_sad_room_talk.jpg




what is wrong with you people
Honestly I think it's just jealousy at this point. It's the only reasonable explanation aside from absolute ignorance for why console players still think Steam is some kind of robber baron boogeyman when in actuality PC has the most diverse marketplace in the industry. (i.e. Steam, Origin, UPlay, GOG, Battle.net, Humble Bundle, LoL, etc.)

Some friendly advice though to strictly console players, its really not hard to get into PC gaming. You don't even need a high end rig or need to have a lot of technical know how because a lot of PC games aren't that demanding aside from newer stuff and most of those are multiplatform anyway. A basic laptop could probably run the majority of everything GOG sells for example.
 

big_erk

Member
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.
cAkoCXx.jpgj

Your point is well reasoned and clearly explained. You will be ignored.
 

joe_zazen

Member
Sweeney's point has been missed. Like visa and MasterCard, Valve adds very little into the chain: all three are parasitic rent seekers, and valve is worse because they take 30%. It is a slam highlighting how little valve does for gaming in general given how much they take from it.

Could the same charges be levelled at Sony, Nintendo, and Microsoft? IDK to be honest. Steam just seems to be a kinda crappy digital storefront, could be wrong tho.
 

KHarvey16

Member
Sweeney's point has been missed. Like visa and MasterCard, Valve adds very little into the chain: all three are parasitic rent seekers, and valve is worse because they take 30%. It is a slam highlighting how little valve does for gaming in general given how much they take from it.

And the discussion here has been knowledgeable folks who know what they're talking about explaining why that's completely incorrect.
 

Durante

Member
Sweeney's point has been missed. Like visa and MasterCard, Valve adds very little into the chain: all three are parasitic rent seekers, and valve is worse because they take 30%. It is a slam highlighting how little valve does for gaming in general given how much they take from it.
I'll just quote this, since there's not really any way I can do better:
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.
(Except to note that the "Several engine tech stacks, including the major tech stack for VR, completely free" really is very significant, even outside the obvious stuff which most enthusiasts know about like VR)

Could the same charges be levelled at Sony, Nintendo, and Microsoft? IDK to be honest. Steam just seems to be a kinda crappy digital storefront, could be wrong tho.
You are completely and utterly wrong. Steam does more than any of them for its users, without asking them for a monthly fee. And, as outlined above, it does at least as much for developers too.
 
I'm shocked at all the people who didn't realize Valve takes a 30% cut of all Steam sales. I assumed it was common knowledge. It's been mentioned here on GAF multiple times in the past.

The short answer to Tim's question is that Valve takes a 30% cut because they can. Valve has created tons of loyal customers who have addict-level dependency habits. They refuse to buy anything unless it's 90% off. They refuse to purchase on any store that isn't Steam. As long as Valve hold a this mindshare over PC Gamers, they can charge whatever the hell they want and people will let them.
 

joe_zazen

Member
And the discussion here has been knowledgeable folks who know what they're talking about explaining why that's completely incorrect.

They don't extract a fuck ton of money from the system while giving the gaming world nothing but a kinda crappy storefront? Do they have scholarship programs? Third world game dev outreach? Etc? If so, my apologies
 

KHarvey16

Member
I'm shocked at all the people who didn't realize Valve takes a 30% cut of all Steam sales. I assumed it was common knowledge. It's been mentioned here on GAF multiple times in the past.

The short answer to Tim's question is that Valve takes a 30% cut because they can. Valve has created tons of loyal customers who have addict-level dependency habits. They refuse to buy anything unless it's 90% off. They refuse to purchase on any store that isn't Steam. As long as Valve hold a this mindshare over PC Gamers, they can charge whatever the hell they want and people will let them.

Yeah if only Valve let them escape they could purchase games on all the other services that also charge 30%.
 

JaseC

gave away the keys to the kingdom.
They refuse to buy anything unless it's 90% off.

http://www.neogaf.com/forum/showthread.php?t=1421550

They refuse to purchase on any store that isn't Steam.

http://www.neogaf.com/forum/showthread.php?p=246801062#post246801062

They don't extract a fuck ton of money from the system while giving the gaming world nothing but a kinda crappy storefront? Do they have scholarship programs? Third world game dev outreach? Etc? If so, my apologies.

There is more to Steam than just the distribution of game installation data, yes.
 

wazoo

Member
I'll just quote this, since there's not really any way I can do better:
(Except to note that the "Several engine tech stacks, including the major tech stack for VR, completely free" really is very significant, even outside the obvious stuff which most enthusiasts know about like VR)

You are completely and utterly wrong. Steam does more than any of them for its users, without asking them for a monthly fee. And, as outlined above, it does at least as much for developers too.

steamworks is one the reason we see japanese devs on PC. a stable API that can help them to invest in the platform long term with limited piracy and online services.
 
Sweeney's point has been missed. Like visa and MasterCard, Valve adds very little into the chain: all three are parasitic rent seekers, and valve is worse because they take 30%. It is a slam highlighting how little valve does for gaming in general given how much they take from it.

Yes, those parasitic VISA and Mastercard, companies that *just* run some of the most advanced international payment systems on the planet.

And similarly to them Valve makes money hand over fist because they run a valuable consolidated marketplace that handles the majority of the headaches of payment and distribution.
 

Durante

Member
They don't extract a fuck ton of money from the system while giving the gaming world nothing but a kinda crappy storefront?
Have you actually read the post I quoted above?

Just to give you an idea, just the single point (out of 20) "several engine tech stacks, including the major tech stack for VR, completely free" includes
  • basic research fundamental to every current consumer VR implementation
  • a full game engine and toolset, completely free
  • contributions to open standards, including OpenGL, Vulkan and OpenXR
  • development of great rendering debugging tools like VOGL
  • an extremely solid, feature-rich and hassle-free build packaging and patch distribution mechanism
    (that allows even individual developers to keep games up to date professionally, easily and while distributing only a minimum of data)
  • a full audio stack with state-of-the-art features that you are completely free to integrate in anything
  • and probably a lot more stuff I haven't personally used yet and which I can't think of right now

In conclusion, you have absolutely no idea what you are talking about.
 
You know, I really like Neogaf.
But there's ONE thing I absolutely loathe about it, although that could be argued to be the same for pretty much every single "forum":
How discussion just seems to "reset". We're at page 13, and there still are people that didn't read the entire thread or, hell, even the last page, and feel the need to regurgitate the same stupid-ass arguments that were rebunked again and again on this thread. This will go on for a few more pages, then the discussion will settle down. Then a few hours later, it'll start all over again. It's just tiring. It's like people are trying to win an argument by attrition.
 
Sweeney's point has been missed. Like visa and MasterCard, Valve adds very little into the chain: all three are parasitic rent seekers, and valve is worse because they take 30%. It is a slam highlighting how little valve does for gaming in general given how much they take from it.

Could the same charges be levelled at Sony, Nintendo, and Microsoft? IDK to be honest. Steam just seems to be a kinda crappy digital storefront, could be wrong tho.

You clearly know very little about the platform then. Why wouldn't you attempt to research your opinions before posting? Just wanted to throw that hot sports opinion out there? It's been stated multiple times by multiple people what exactly steam is and does. Needless to say this is another ridiculous Sweeney quote.
 

KHarvey16

Member
Lol, yeah, I'm done...too many know-it-all angry fans for this know-little tired non-fan.

Your willingness to make declarations despite a vast ignorance is really an inspiration. And then having the audacity to blame everyone else who actually knows stuff for correcting you...the cherry on top. Great job.
 

Sotha_Sil

Member
I'm fairly certain publishers like Bethesda and Square Enix make more money off of a full-price sale on Steam than they do a full-price sale of a console game at retail.

The latter involves writing to a physical medium, shipping across the country, the store's cut, and Playstation/Xbox/Nintendo's cut (which is probably close to 30% itself if I had to guess). The console makers love big 3rd party releases - they make a ton of money for little effort on their part.
 
You clearly know very little about the platform then. Why wouldn't you attempt to research your opinions before posting? Just wanted to throw that hot sports opinion out there? It's been stated multiple times by multiple people what exactly steam is and does. Needless to say this is another ridiculous Sweeney quote.

The "it seems" makes it obvious he doesn't use the store. Or PC in general
It is a phenomenon, but how similar are console and pc audiences? For example, GTA online is huge, but is anyone on pc playing that?


I sincerely have no idea why do people that don't know what they're talking about feel the need to give stupid-ass statements about these things. I don't own a PS4, but I don't go into a PS4 thread to shitpost about it, how the download speeds are terrible, how the security is bad, how there's no refunds or anything else.
 

mnannola

Member
I like Tim, but he is way off base here. Valve/Steam has done more for PC gaming than anyone else I can think of. They made a platform that is friendly to both indie games and AAA releases. Steam sales expose people to tons of games they most likely would have never tried. They built a freaking VR system inside of it.

They take zero freaking dollars for multiplayer gaming, unlike Microsoft / Sony.

This is a case where if Tim thinks he can do the same job for a smaller cut, you need to show the goods.
 
Lol, yeah, I'm done...too many know-it-all angry fans for this know-little tired non-fan.

Maybe if you recognize that you “know-little” you should stop and reflect on if coming into a thread and making bold claims is such a good idea

Food for thought for your next reply
 

tuxfool

Banned
I sincerely have no idea why do people that don't know what they're talking about feel the need to give stupid-ass statements about these things. I don't own a PS4, but I don't go into a PS4 thread to shitpost about it, how the download speeds are terrible, how the security is bad, how there's no refunds or anything else.

It would be perfectly fine for you to go into a PS4 thread.

However, one should read the thread before posting their hot takes. Most often if a person knows nothing other people will have done the legwork to help a know-nothing become a know-something.
 
It would be perfectly fine for you to go into a PS4 thread.

However, one should read the thread before posting their hot takes. Most often if a person knows nothing other people will have done the legwork to help a know-nothing become a know-something.

You're right, I may have worded that wrong. But it's as you said. The very minimum you need to do to post claims such as the ones posted in this thread is to read the thread you're posting in.
 
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