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Former Valve employee says Steam was killing PC gaming, Epic Games is saving it

Shin

Banned
Recently, ex-Valve employee Richard Geldreich has been giving his thoughts via Twitter about the PC civil war that is currently waging between Steam and the Epic Games Store. Despite working for Valve from 2009 to 2014, he voiced his support for Epic’s new platform, stating that it is “fixing” what Steam is breaking.

In the tweet below, Geldreich emphasizes that Steam’s tax is not only unsustainable but that it is a drain for developers and gamers alike. “If it wasn’t for Epic the entire industry would still be crunching away to support Valve’s 30% revshare.”

The former Valve dev went on to say that the profits from these are going to people who didn’t care about the industry or the conditions its employees worked within. In the past Geldreich has been outspoken about his former workplace, stating that Valve’s internal politics were “ruthless” and “self-organizing.

This conversation all arose after Epic founder Tim Sweeney quote-tweeted a USgamer article discussing the allegations that the Epic Store is spyware that is tracking data to send to the Chinese government through Tencent Holdings.
He expressed that Tencent does not have access to Epic customer data and that the info that was being spread was completely unfounded.

Geldreich supported Sweeney’s views, writing the concerns off as “insane.”
“Anyone with procmon and some knowledge can see this,” Geldreich wrote. “I worked for Valve and believe me they gather huge amounts of data about virtually everything you do with the Steam client. Yet no one calls Steam spyware.”
While the tweets opened up conversation and debate regarding the situation, many simply see Geldreich’s thread as a disgruntled ex-employee that has an ax to grind.



Credit: Twinfinite
Source: https://twitter.com/richgel999/status/1113988444370300928
 

Ballthyrm

Member
The first clients of platform are always the developers.
I think it fair to fight for Devs with revenue share.
 

KonradLaw

Member
Valve's cut is actually closer to 22% when you take into account the free keys devs can sell elsewhere.
Also.. if somebody cares only about developers' revenue then Epic's 12% is still pure robbery. Dude should be pushing for acceptance of buying directly from devs instead of from shady Epic.
 

manfestival

Member
Not sure how Epic is truly fixing this for all gamers.... they aren't exactly any better and just providing competition by strong arming. EGS isn't exactly some savior.

Though the guy does bring a fair point. Valve lost its way a while back and yeah probably steam was to blame. Artifact and Dota 2 were the last 2 games developed by valve.... and we never got Half like Episode 3 or 3.
 
Well anyone that regularly uses steam knows this. It's not just a 30% take on every game. They take a big cut from every transaction in the marketplace.
 
“Killing the industry” seems like a hyperbolic stretch.

I can see how the 30 percent cut could easily be undercut by competing platforms though. I’m not a business guy though. I just wish Steam had been able to meet devs in the middle and the separation could have maybe been avoided?
 

shark sandwich

tenuously links anime, pedophile and incels
Also.. if somebody cares only about developers' revenue then Epic's 12% is still pure robbery. Dude should be pushing for acceptance of buying directly from devs instead of from shady Epic.
So if you prefer that a storefront take a smaller cut of the profits.....you should just oppose the idea of a storefront altogether?

Sorry, this is easily the dumbest thing I’ve read all week.
 

Fbh

Member
Ex-employee is critical of the company he used to work for? Now that's something I've never seen before!
 

Croatoan

They/Them A-10 Warthog
ITT anti-epic crybabies move the goal posts even farther back while trying to act like they are anything but lazy fanboys for a man that gives zero shits about them.
 

McHuj

Member
Killling the industry? Unsustainable? Lol no.

30% is high and ripe for competition to drive that percentage down, but it wasn’t killing the Indus or unsustainable. I wish people would stop the hyperbole, it only lessens the argument.
 

Xyphie

Member
30% is high and ripe for competition to drive that percentage down

The problem of course is that Valve prevents you from selling the game cheaper on other stores. You can't open a store with a 15% cut and sell a $60 game for $50. The consumer doesn't care if the developer gets 15 or 30% if the price is $60 either way.
 

DeepEnigma

Gold Member
The problem of course is that Valve prevents you from selling the game cheaper on other stores. You can't open a store with a 15% cut and sell a $60 game for $50. The consumer doesn't care if the developer gets 15 or 30% if the price is $60 either way.

Yet games are not cheaper on Epic. They are still the same $60 with %18 more profit. Even the exclusives.

This has been an industry strong arm tactic stores have been using since Gamestop at the dawn of digital stores for console games.
 

Xyphie

Member
Yet games are not cheaper on Epic. They are still the same $60 with %18 more profit. Even the exclusives.

This has been an industry strong arm tactic stores have been using since Gamestop at the dawn of digital stores for console games.

Sure.

My point is that the only realistic (non-regulatory) avenue of competing with Steam is to flat out buy exclusives like Epic is doing.
 
I have zero problems with Epic wanting to open an online gaming portal/store to capitalize on Fortnite's success and challenge Steam. Hell, we already have (for example):
  • EA and the Origin store
  • CD Projek Red and GOG
These stores are just trying to get a leg up on Steam and offer a robust environment for sales and community. And save for Epic, I would suggest GOG is doing the best job of this...but I may be partial since I'm an older gamer.

However, I do have problems with a company like Epic that gets in bed with a Chinese company that is known to have passed sensitive information to Chinese government leadership and intelligence agencies and has little regard for government regulation and the law. This is something that should give all gamers pause, as any company that works with the Chinese government is ultimately beholden to the Chinese Government and its leadership.

Frankly, it wouldn't shock me to wake up tomorrow and read that the Epic Gamestore was a trojan horse for Chinese government-sponsored malware that spreads like wildfire and cripples our infrastructure in many different ways. Think WannaCry on an even bigger scale.
 
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Panajev2001a

GAF's Pleasant Genius
Yet games are not cheaper on Epic. They are still the same $60 with %18 more profit. Even the exclusives.

This has been an industry strong arm tactic stores have been using since Gamestop at the dawn of digital stores for console games.

The thing is that they keep pulling the same bait and switch ("C'mon gamers if you do X we could lower the price by Y!!!!... wait you have done it... uhm... we said we could lower it, not that we would trolololololo....")... look at how digital downloads, cutting out the middle man, reducing the resale, cheap used copies issues would have freed up lots of profit margins to pass onto customers... hahaha...

Only to have some publishers justifying that they actually have higher prices than some retail shops because they are selling you the "convenience" of digital downloads... and here they go again.
 
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DeepEnigma

Gold Member
The thing is that they keep pulling the same bait and switch ("C'mon gamers if you do X we could lower the price by Y!!!!... wait you have done it... uhm... we said we could lower it, not that we would trolololololo....")... look at how digital downloads, cutting out the middle man, reducing the resale, cheap used copies issues would have freed up lots of profit margins to pass onto customers... hahaha...

Only to have some publishers justifying that they actually have higher prices than some retail shops because they are selling you the "convenience" of digital downloads... and here they go again.

Seriously. It has been a bait and switch for years with all the smoke they blow at us as consumers. Which is why I have no issues waiting for sales now.
 

Ixiah

Banned
If Epic would be interested in truly being Competitive, they would spend some of that Fortnite Money on a freaking Store UI and QoL features, instead of pissing everyone off with their scummy Exclusive deals.
 

DeepEnigma

Gold Member
If Epic would be interested in truly being Competitive, they would spend some of that Fortnite Money on a freaking Store UI and QoL features, instead of pissing everyone off with their scummy Exclusive deals.

They should have used the Unreal Engine to build their store.
 

Sakura

Member
How is a 30% "tax" unsustainable? What do PSN etc charge? How does 30% compare to what they lose selling retail? More importantly why would any of this matter to the consumer? I don't care if the cut is 0% or 60% if the price I pay is the same. The only reason the Epic store takes a smaller cut is because it is a business opportunity. They think they can draw developers away from putting their games on Steam through the promise of more revenue, and as a result rake in some of that Steam money. It's not like they are taking a smaller cut because they think it is the right thing to do, or that 30% is unfair or anything.

The problem of course is that Valve prevents you from selling the game cheaper on other stores. You can't open a store with a 15% cut and sell a $60 game for $50. The consumer doesn't care if the developer gets 15 or 30% if the price is $60 either way.
Let's be real here. If they sold the game for $50 on the store with a 15% cut then they aren't making any more money than they would be selling it for $60 on the 30% cut store, killing the entire reason for developers to want to put the game on the store. I don't think Valve preventing you or not matters.
 
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demigod

Member
Bitter ex-employee. If anything pc games are thriving because of Steam. Look at all those niche Japanese games that are on Steam.
 
But without Steam where can I play quality games such as Border Control?

ss_f39d7caa8aa1b4ec8eb36fe7e1d9a57c55f7458e.600x338.jpg


Honestly, I don't care about Steam v Epic. Please carry on.
 
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Drake

Member
I feel like I'm one of the few who doesn't have an issue with what Epic is doing. Mostly because it keeps Valve honest and prevents a monopoly. In the end, competition is good for the consumer.
 

Hudo

Member
I feel like I'm one of the few who doesn't have an issue with what Epic is doing. Mostly because it keeps Valve honest and prevents a monopoly. In the end, competition is good for the consumer.

I agree. I would even say that Valve needed this for a long time. They need to get their shit together again and start communicating with people. This is their biggest issue they have to solve IMHO: Communcation. They are hilariously bad at it, especially as a platform holder/service provider.

But I still maintain my utopian vision of decoupling the games you buy from the fucking stores you buy them from. I still don't see why they need to be tied to some store account. I want the store to fuck off after I have bought the game.
 

daveonezero

Banned
There is nothing stopping Valve from changing payout and making these arguments pointless. Also Taxes are different as they are government enforced. You rarely see direct results or anything for this money and it is also compulsory.

Valve is giving you a store front and many other features for you game if they put it on their store. Its not a tax its a fee in exchange for the services valve offers. You are free to go somewhere else.
 
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If Epic would be interested in truly being Competitive, they would spend some of that Fortnite Money on a freaking Store UI and QoL features, instead of pissing everyone off with their scummy Exclusive deals.



THIS.


Looking forward to reading from an Epic former employee to tell us the opposite, though.
 

KonradLaw

Member
So if you prefer that a storefront take a smaller cut of the profits.....you should just oppose the idea of a storefront altogether?
.
If you care about devs themselves? Sure. 0% sure beats 12%. So if you prefer a smaller cut you should prefer direct sales over big storefronts.
 

demigod

Member
I think you are smart enough to realize that creating and running a game store for a dev studio to just sell their own games just isn't financially feasible.

I think you are smart enough to know that its not financially feasible for Valve to open their store for free either.
 

KonradLaw

Member
I think you are smart enough to realize that creating and running a game store for a dev studio to just sell their own games just isn't financially feasible.
Of course it is. That's how petite devs have been selling their games forever. And today it's even easier. because you don't need your own download service. You can generate Steam keys for free and then sell them directly. This way people get their games on Steam where they like it, while devs gets to keep 100% (well..minus transaction fees).
 

Fujan

Member
I kind of see what this guy is saying. If I sold $1,000,000 worth of a title I'd only see $700,000. That's bullshit.

How much would you sell if you didn't have Steam as a platform though for millions of users to see your product?
 

MadAnon

Member
Of course it is. That's how petite devs have been selling their games forever. And today it's even easier. because you don't need your own download service. You can generate Steam keys for free and then sell them directly. This way people get their games on Steam where they like it, while devs gets to keep 100% (well..minus transaction fees).
I hope you realize that Valve has full control over that market? So no, a dev can't just go and sell his game exclusively like that. Valve monitors how many games are sold on Steam and how many keys are activated. They don't completely crack down on key selling outside Steam but they keep it in check so it doesn't hurt them in any significant way. Valve ditched automatic key generation like 2 years ago if I remember correctly so devs don't abuse this system anymore.
 
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Lucumo

Member
I wouldn't say killing it. It's more a cancer that has grown a lot over the years and thus makes PC life miserable.
 

KonradLaw

Member
I hope you realize that Valve has full control over that market? So no, a dev can't just go and sell his game exclusively like that. Valve monitors how many games are sold on Steam and how many keys are activated.
Exclusivelly no, but large number of games do get sold this way. Enough that Valve's cut on average is actually closer to 22% than 30%.
Personally I sure hope Epic isn't imagining they could ever replace Steam, because that would be delussional. Steam will remain the biggest pcgaming store and Epic can only hope to carve out sustainable piece of the pie. In the end the result will be more fragmentation. But I don;'t think that's a bad thing. it's annoying, sure, but the more people learn to buy from multiple stores the better. And while there are plenty of people who buy from Steam only, there won't be many who buy "from Steam and Epic Store only". If Epic manages to convince people to look outside Steam those people will in most cases be willing to buy on different stores too.
Having so many launchers will suck, but in the end the more fragmentend the pcgaming market is the more resistant to damage it will become. I like Steam, but they've banned games like Cartagra and Kara no Shoujo, despite Steam version lacking any porn. If VN users wouldn't be already used to buying games directly from publishers those games woule be DOA. PCgaming market is too valuable and important to let it's fate be controlled by one company, even as pro-consumer one as Valve. It's also too imporant to let it be controlled by just two companies.
 

daveonezero

Banned
Monopolies are never good.

It wasn't a monopoly and there is noway for us to prove that. Digital stores have come and gone.

I think DRM is a big part of the question not being answered. Plus there is GOG where they sell DRM free games and the launcher isn't even necessary. Any developer could just put their game up on their store DRM free and it would be fine.
 
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