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

Gattsu25

Banned
Steam charges the same rate as Sony's, Microsoft's, Apple's, Google's, Amazon's, and even Epic's (read: Tim Sweeney's ) digital app/games stores. Also:
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.

For the new page
 

MUnited83

For you.
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're completely and utterly wrong. They do more than Sony Nintendo or Microsoft. "how little valve does for gaming in general " fucking LMAO what a huge showing of complete ignorance.
 
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.
The image is worldwide but League, World of Tanks, Overwatch, and World of Warcraft are all huge in the west. Battle.net will probably give Steam a run for it's money if they keep adding Activision's biggest games on to it.
 
That's a lot as a number completely in a vacuum but it's not out of line vs most other stuff that gets distributed and what distributors take. Offline or online.
 
Valve pretty much saved PC gaming, and spear headed digital downloads, while still cooperating with other third party stores such as humble bundle.

They can take 40% and whack the extra 10% on to the end consumer, IDGAF, they deserve it for how much they have contributed to improving PC gaming infrastructure.
 

Zarth

Member
Haven't seen anyone mention it or maybe I missed it but Sweeney's Keynote at Devcom at Gamescom focused on this topic.

gamesindustry.biz paraphrases parts of his speech.

http://www.gamesindustry.biz/articl...a-huge-amount-of-profit-at-developers-expense

He clearly seems to think that all online merchants (not just Steam) are taking advantage of developers. He also seems to think that these storefronts are doing less than they used to but still charging the same cuts.
 

teh_pwn

"Saturated fat causes heart disease as much as Brawndo is what plants crave."
Well it shouldn't be 30% but it also should be more than credit cards. Credit cards don't have to send TBs of data to their clients indefinitely.
 

Gattsu25

Banned
Well it shouldn't be 30% but it also should be more than credit cards. Credit cards don't have to send TBs of data to their clients indefinitely.

Going to quote myself from the top of this page:
Steam charges the same rate as Sony's, Microsoft's, Apple's, Google's, Amazon's, and even Epic's (read: Tim Sweeney's ) digital app/games stores.​
 

Nzyme32

Member
30% is the standard for almost every thing. How about asking the question of when most companies will veer away from this when at a particular volume.

How are people in this thread surprised by an industry standard cut?

XBL and PSN take the same cut AND have a monthly fee.


lol

Not to mention a royalty fee on top of that, which makes many of the comments here hilarious, and then of course it's the 0% Valve get for any external sales / keys with third parties, which actually opens the door for variation below 30% at other places / digging into that standard margin to undercut competing third party stores
 
Haven't seen anyone mention it or maybe I missed it but Sweeney's Keynote at Devcom at Gamescom focused on this topic.

gamesindustry.biz paraphrases parts of his speech.

http://www.gamesindustry.biz/articl...a-huge-amount-of-profit-at-developers-expense

He clearly seems to think that all online merchants (not just Steam) are taking advantage of developers. He also seems to think that these storefronts are doing less than they used to but still charging the same cuts.

Good post. The people posting in this thread saying "but Apple/MS/Sony" are missing this context.

This is ultimately something developers, publishers, and storefronts have to fight out in between themselves as part of their business. It's interesting to watch and wonder why 30% has been becoming standard. I suspect the issue is that the publishers with the biggest leverage simply create their own storefront rather than deal with someone else getting a 30% cut, such as Origin or the Windows Store. The ability to easily set up a competing store where you get 100% and have total control prevents the market from forcing steam to lower their 30% cut.
 

Audioboxer

Member
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.

That I can get behind if I take one thing away from this topic. Paying for online multiplayer is garbage and always will be. We just don't have a choice on console and the strangle-grip MS/Sony have over gamers is never letting go. Sony just put PS+ prices UP... lol.

As for a brief comment on Valves cut, seems to be an industry standard amount. Can't say I don't wish the devs pocketed more, I do, but the world of business is often a harsh cunt. Publishers probably do more damage than the digital distribution platform. They're routinely life sucking or microtransaction/DLC pushing maniacs.

Gaming is a messy beast and the best thing to do is just hate every company, publisher and dev and moan all the time. Loyalty is selling your soul. No one is your friend, the only thing they all want is your wallet (ง ͠° ͟ل͜ ͡°)ง
 

teh_pwn

"Saturated fat causes heart disease as much as Brawndo is what plants crave."
Going to quote myself from the top of this page:
Steam charges the same rate as Sony's, Microsoft's, Apple's, Google's, Amazon's, and even Epic's (read: Tim Sweeney's ) digital app/games stores.​

Digital purchases on my PC should be less than a console which subsidizes hardware cost and marketing from publishing fees.

I feel like 15-20% should be the ballpark, especially as the compute, networking, and storage costs has dropped significantly since Steam started.

The reason Steam hasn't is because it doesn't have significant, direct competition. There's no reason to pass on the operational savings to the consumer.

I'm not saying Steam shouldn't make a profit. They should make a lot of money, instead of obscene amounts of money.
 

Armaros

Member
Digital purchases on my PC should be less than a console which subsidizes hardware cost and marketing from publishing fees.

I feel like 15-20% should be the ballpark, especially as the compute, networking, and storage costs has dropped significantly since Steam started.

The reason Steam hasn't is because it doesn't have significant, direct competition. There's no reason to pass on the operational savings to the consumer.

They are less, devs and publishes don't pay royalty fees to Steam like with console manufacturers.

Just like the consoles you have to pay for online because you can't compete against them with multiplayer access because they control it all.

But apparently that is fine because hardware. Which is the new 'console manufactures can do anti-consumer shit' excuse.

But apparently it's STEAM that is being greedy, when they provide online services equal or better then the console manufacturers but for free

But Alas HARDWARE is a cureAll
 

KHarvey16

Member
Digital purchases on my PC should be less than a console which subsidizes hardware cost and marketing from publishing fees.

I feel like 15-20% should be the ballpark, especially as the compute, networking, and storage costs has dropped significantly since Steam started.

The reason Steam hasn't is because it doesn't have significant, direct competition. There's no reason to pass on the operational savings to the consumer.

I'm not saying Steam shouldn't make a profit. They should make a lot of money, instead of obscene amounts of money.

See:

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.

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.
 

teh_pwn

"Saturated fat causes heart disease as much as Brawndo is what plants crave."
They are less, devs and publishes don't pay royalty fees to Steam like with console manufacturers.

Just like the consoles pay for online because you can't compete against them with multiplayer access because they control it all.

But apparently that is fine because hardware. Which is the new 'console manufactures can do anti-consumer shit' excuse.

There are royalty fees in addition to the 30% cut on consoles for digital content? That's straight up highway robbery.
 

Armaros

Member
There are royalty fees in addition to the 30% cut on consoles for digital content? That's straight up highway robbery.

What do you think? Just because it's digital that publishers and devs don't pay for the licensing they pay on physical copies?

You think any of the console manufacturers would let that slide?
 

teh_pwn

"Saturated fat causes heart disease as much as Brawndo is what plants crave."

Well thanks for the explanation - I'm late to the thread and obviously didn't read it entirely. Seems they are giving a fair deal. Perhaps that's partly why there isn't competition because the market is already fairly efficient.
 

Mrbob

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.

Yeah that is a big difference between Steam and other store fronts which sell steam keys. They take 0 in for keys sold outside of Steam. How many other digital store fronts do the same thing and take a zero cut outside of their platform? I don't think there are any others.
 

M3d10n

Member
I just remembered the fee wasn't always 30%. It actually used to be higher several years ago before Greenlight. I remember a time when the standard fee was 40% and you had to negotiate to get it lower.
 
"HOW COME NO ONE TOLD ME" the thread.

It's doubly silly compared to this recently unearthed nugget. But why fight the fight you didn't start, right? So much responsibility, so much risk.

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

"I reject your reality, and substitute my own."
 
There's no reason to pass on the operational savings to the consumer.

I'm not saying Steam shouldn't make a profit. They should make a lot of money, instead of obscene amounts of money.
Let's be completely clear: those savings will never be passed onto the consumer, regardless of where said savings are made. Tim Sweeney isn't complaining about a 30% cut because he wants to reduce the price of purchase for Epic's content, he's complaining because a 30% cut eats into his bottom line. Just like with Blizzard, EA, and Ubisoft, any savings made from selling games directly to the consumer without that 30% cut are not being passed onto the consumer.
 

patapuf

Member
Well MS tried to Break this quasi Monopol. But thanks to your shittalking its Not happening

Yeah, MS tried to introduce paid MP to PC gaming. Then they left their store for dead when it was struggling. Thats' the company that looks out for devs and consumers.

And the Win10 store is not taking off because it's bad, not because people are mean to it on the internet.
 

JaseC

gave away the keys to the kingdom.
I just remembered the fee wasn't always 30%. It actually used to be higher several years ago before Greenlight. I remember a time when the standard fee was 40% and you had to negotiate to get it lower.

Valve offers an alternative Source Engine licensing option that increases its cut in lieu of an upfront fee. That's how Garry's Mod went from, well, Garry's mod to Garry's commercial success.

I imagine Source 2 licensing will be handled the same way, minus the upfront fee option, but on that note I don't think we're going to see an SDK until L4D3 or whatever Valve's first fully-fledged Source 2 release ends up being.
 

AmFreak

Member
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
Great list to show to an indie dev after you told him he doesn't absolutely need to be on Steam, because lol.
 
I'm having one of those days and think Tim Sweeney's comment is stupid, and that he should feel stupid for making it.

Like the least you could do is have the wherewithal to not be a hypocrite because your own storefront takes the same cut.

Seriously.
 

patapuf

Member
Great list to show to an indie dev after you told him he doesn't absolutely need to be on Steam, because lol.

Tim Sweeney's parent company is Tencent. Which incidentally, is on top of that list (nevermind the origins of league of legends).

Indie devs have never had more stores and platforms to release their games onto, phones, consoles, stores from itch.io to steam and everything in between and self publishing on their own website. Steam being so popular with indies has a lot more reasons than just it's size, because there's way bigger fish to be on than steam.
 

ArtHands

Thinks buying more servers can fix a bad patch
Good post. The people posting in this thread saying "but Apple/MS/Sony" are missing this context.

This is ultimately something developers, publishers, and storefronts have to fight out in between themselves as part of their business. It's interesting to watch and wonder why 30% has been becoming standard. I suspect the issue is that the publishers with the biggest leverage simply create their own storefront rather than deal with someone else getting a 30% cut, such as Origin or the Windows Store. The ability to easily set up a competing store where you get 100% and have total control prevents the market from forcing steam to lower their 30% cut.

His tweet framed the context that only Steam is the issue there. Its certainly not people missing the context.
 

Roshin

Member
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.

...but because its steam its always right what they do no matter how greedy and anti consumer and anti dev they are.

I can't believe I'm reading such nonsense here.
 

kswiston

Member
Valve's cut is standard, but why isn't more of that cut used to improved the Steam app? I swear that I had fewer issues with it 4-5 years ago than I do now (between random start up problems, stalled downloads, and general sluggishness).

I prefer Steam, because I have hundreds of titles on it by this point, and I like some of their policies, but every other gaming app runs better on my machine.
 

Pixieking

Banned
Well MS tried to Break this quasi Monopol. But thanks to your shittalking its Not happening

I'm confused how something that was literally embedded into the operating system of the overwhelming majority of PCs sold was supposed to be "competition". I mean, what if it became so dominant that it became the very thing people think Steam is? And do people not remember the anti-trust filings against MS for doing this exact thing in the browser market?

Anyways, it was shit for consumers, and with its relative failure, MS are now moving towards cross-play WinStore/Steam, so they actually compete on feature-set and price, rather than weird console-like exclusivity of games in a walled garden.


Well, that makes me feel better. I mean, it's not like I paid money for Viva Pinata and cannot play it anymore. At all.

Oh, wait...
 
cAkoCXx.jpgj

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

That's not the worst part, he had the gall to back it up with hard numbers and even disclosed the statistically sound method by which he arrived to them. I'd be surprised if he's not put permanently on ignore by everone else.
 

NastyBook

Member
I'm confused. If other large companies do this, why is Steam being singled out? Were they not doing this before, or was the amount not disclosed?
 

Helznicht

Member
The sad thing about this 30% standard isn't really Steams monopoly, it's the collusion between all the stores to not undercut it, even companies like MS & Epic, even GOG who are trying to break into the market mysteriously still set their revenue share at 70/30.


Clearly the thinking is "we could lower the cut, but then if we do well Valve will just match us and we'll all just make less money, so stick to 30%"

The quoted is NOT collusion. My company walks away from opportunities all the time so as to not crush the market and weaken our long term profitability for a short term gain. As long as you are not making agreements with competitors, its all good.
 
This thread is embarrassing on both sides.
1) Yes, Steam is a de facto monopoly. Let's not mince words. If you're not Blizzard or a F2P game maker, you will starve if you try to sell your game elsewhere.
2) Unlike consoles, they became a monopoly fair and square, by simply being more attractive than the competition. Stop accusing them of being a monopoly as if it was some nefarious thing they did, especially if you're going to conveniently ignore pretty much every other platform's store is also a monopoly and one enforced by its manufacturer.
3) As pointed out by Stumkapow, Steam's effective cut, factoring in keys sold elsewhere, is closer to 20%. In that regard they're providing more (cloud saves, etc.) for less (no subscription fee, lower effective cut) than pretty much any other store.
4) Sweeny's "UE4 store is smaller so that makes it OK for us to take the same cut" excuse may be the most embarrassing thing in the entire thread.
 
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