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Tarmack explains how Digital Homicide really made money on Steam.

So all those times I've said that "if you play your cards right"... it was for real?

I wonder how many series and games can be held afloat by cards?
 
I mean, that's part of it, but they also made money by people buying their games. 2,000 copies at $1/copy is a low but liveable wage for a single person, if you can pump out a game a month (which has been about their average release rate). They average 95,000 copies per game according to the video, so even if <5% of their units are sold at full price, they'd still be making a living wage, and at 20% they're making more than two living wages.

It's also not a "flaw" that people can make money on bad games by selling cards. To sell cards, there needs to be someone to want to buy them. If no one wanted to buy them, they wouldn't sell, which means no one would buy bundles to sell the cards, so the scam wouldn't work. Which implies that they offer value to the buyer.

Let me suggest an alternate theory: people want to buy the cards for bad games ironically because people like Sterling keep giving attention to the games and making them go viral.
 
Yep. There's companies that buy the rights to old ass shovelware, make some basic trading cards, and then put the game on a indie bundle or on a 90% sale so they can flood the market with their cards.
 
Someone who has more ambition than I should make DH and Jim Sterling trading cards. We can create an OT and put the proceeds for a legal defense in an escrow account. So, when we all receive subpoenas in the mail, we can hire LawyerGAF
 
Yeah, I bought them because of the cards, for some reason people actually bought them, so it was good business for me.

For example steam started using my local currency since May of the last year, before that I had like 10 cents, thanks to the conversion I actually got more money than what the dollar was valued here (wasn't that much really) but I benefited with the fact that the conversion rate for this cheap games was super favorable to me, thanks to that I managed to convert 20 cents in 2 dollars, which is a lot if you consider that I didn't put any money then, plus since my library got bigger I actually increased the rates of packs from this games.

It sucks that Digital Homicide were such colossal jerks with everyone.

What I really want to know is why people buys cards from this shovelware games
 
Makes me think of Bmc Studio, they put completely shit non-games up on greenlight with promise of cards that will get you meme emots.

https://steamcommunity.com/id/BmcStudio/myworkshopfiles/?section=greenlight

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I am not following the math on this at all. I wish he had included infographics instead of just showing Turing Test gameplay.

I don't see how they were generating $60K a month on trading cards. Can someone break it down for those of us not intimately familiar with Steam's card system?
 
I am not following the math on this at all. I wish he had included infographics instead of just showing Turing Test gameplay.

I don't see how they were generating $60K a month on trading cards. Can someone break it down for those of us not intimately familiar with Steam's card system?

From each card transaction, you have to include a 15% fee which is divided between valve and the devs (I think this are the percentages).

I want to know why not every games has trading cards, seems like a good enough extra income for devs, unless you have to pay another fee to Valve in order to put them
 
I am not following the math on this at all. I wish he had included infographics instead of just showing Turing Test gameplay.

I don't see how they were generating $60K a month on trading cards. Can someone break it down for those of us not intimately familiar with Steam's card system?

It's pretty simple, they get 10% of any transaction happening with anything going on related to their games on steam. So if a dude sells a card to another dude for 10 cents, they get 1 cent. This is happening constantly all over steam among crazy people trying to get complete sets of cards for achievements or whatever. If there are 10,000 10 cent transactions every day, they make $100 every day. Per game that's having those 10,000 10 cent transactions.
 
I could probably Google this, but can someone explain why people buy Steam trading cards? Where does their value come from? How many can a developer implement into their game?

It's one aspect of Steam I've never used.
 
I could probably Google this, but can someone explain why people buy Steam trading cards? Where does their value come from? How many can a developer implement into their game?

It's one aspect of Steam I've never used.

I've barely used it myself, but I think it's all about making a number go higher
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I could probably Google this, but can someone explain why people buy Steam trading cards? Where does their value come from? How many can a developer implement into their game?

It's one aspect of Steam I've never used.

You use cards to get badges. Badges make your level go higher. Higher levels can have bigger friends lists. That's about the only tangible reason to increase level right now.
 
Of course it'd be the fucking cards.

Yeah, doesn't Valve take a 30% cut then the rest goes to like the developers in addition to the the person selling it? I wouldn't be surprised.

Saganator said:
've barely used it myself, but I think it's all about making a number go higher

Well, when you hit 20-30 you get a HUGE (like 20-60%) increased drop in booster packs randomly being given to you. You can sell those unopened for like $.40 each.

Throw in that every 10 or so levels give your profile a new thing (friend list increase, profile box to use)... Not that hard to see people meta-gaming the Steam profile/levels through trading cards. Especially as buying games after a while doesn't jump start your levels.
 
Yeah, doesn't Valve take a 30% cut then the rest goes to like the developers in addition to the the person selling it? I wouldn't be surprised.

I don't think the devs get anything, and Valve only get's like, 10-20%. If I put a 38 cent card up for sale, I'm personally getting 34 of those cents.
 
It's pretty simple, they get 10% of any transaction happening with anything going on related to their games on steam. So if a dude sells a card to another dude for 10 cents, they get 1 cent. This is happening constantly all over steam among crazy people trying to get complete sets of cards for achievements or whatever. If there are 10,000 10 cent transactions every day, they make $100 every day. Per game that's having those 10,000 10 cent transactions.

Have their games really sold enough to make that much passive income though? If so, why do so many users want trading cards associated with garbage games?
 
There are two questions we should ask:

One, should cards and similar items continue to be a part of Steam and most games? The market says yes. Granted, I'm not convinced it offers any real value as to be a commodity, but I'm a capitalist and the facts are the facts.

Two, should Valve continue to be so lax in their store policies that games developed in large part to cash in on the card market and other tradable/selleable can flood the market? Personally, I don't think so. There is no perfect amount of oversight that will allow any reasonably good or competent game on the store and any bad or broken game to be declined, but surely being more strict and pushing the 50/50 games towards green light is a much better alternative to what Steam is now.

Think about it, people can spend very little time and effort to make a "game" with the sole purpose of selling their games sometimes for pennies simply so they can garner as much money from continuous reselling of digital items that otherwise would be generic freebies. It's quite absurd, even for great games. The fact there is an emerging market is going to mean even more garbage filling up the storefront. It's an avalanche of shit games that Valve is allowing to happen.
 
[...]It's also not a "flaw" that people can make money on bad games by selling cards. To sell cards, there needs to be someone to want to buy them. If no one wanted to buy them, they wouldn't sell, which means no one would buy bundles to sell the cards, so the scam wouldn't work. Which implies that they offer value to the buyer.

Let me suggest an alternate theory: people want to buy the cards for bad games ironically because people like Sterling keep giving attention to the games and making them go viral.

The cards have value due to their base valuation as Steam Cards into the badge -> leveling system. Websites track how to make badges cheapest and I think it's fair to say this has more value than the extremely questionable value of having a badge from DH on one's steam profile. I can only remember the name of two of their games, but the badge cost of both are still at the bottom tier.

And of course as we know and as the video states, having that base value established can lead to developers like DH selling their games+harvestable cards to users and then the users themselves make a profit or break even by selling the cards.
 
I mean, that's part of it, but they also made money by people buying their games. 2,000 copies at $1/copy is a low but liveable wage for a single person, if you can pump out a game a month (which has been about their average release rate). They average 95,000 copies per game according to the video, so even if <5% of their units are sold at full price, they'd still be making a living wage, and at 20% they're making more than two living wages.

He's married with kids.
 
One of the problems with this video is that the narrator is going by Steam Spy and assume that ever owner of a DigiHom game was someone who purchased it.

Digital Homicide was notorious for giving away most of their games using Steam groups and Gleam giveaways. They also gave away games in exchange for social media followers and to promote their other games on Greenlight to get them up on the store.

From what I know about Steam collectors, I'd say that a vast majority of the reported owners for any of their titles were freeloaders, and the only money they got was through the trading card system.
 
I'll be honest, I've got no idea what, why, or how, steam trading cards work :-/

Most games have trading cards.

Trading cards are, well, digital trading cards with artwork on them. When you play a game, you gradually unlock, say, less than half of the cards available for that game. There are neat little buttons and things you can unlock for your Steam profile only by completing sets of cards. There are different card rarities (foil, etc.).

The way you get complete card sets once you hit your playtime unlock limit is by trading. The steam marketplace allows people to trade money for digital stuff.
 
Most games have trading cards.

Trading cards are, well, digital trading cards with artwork on them. When you play a game, you gradually unlock, say, less than half of the cards available for that game. There are neat little buttons and things you can unlock for your Steam profile only by completing sets of cards. There are different card rarities (foil, etc.).

The way you get complete card sets once you hit your playtime unlock limit is by trading. The steam marketplace allows people to trade money for digital stuff.

So like achievements, but collectible cards, that people buy and sell for real money?

Blimey.

So cheap shitty assest flips can just be vehicles for trading card flipping?
 
So like achievements, but collectible cards, that people buy and sell for real money?
Blimey.
So cheap shitty assest flips can just be vehicles for trading card flipping?

Yup and if you look through the discussion threads for games you can see comment after comment from people fucking desperate for cards. If you don't have cards and trophies your discussion thread & comments will be full of "I'll buy it when you add cards and chievo's" or "When are cards and trophies coming?"

Sadly, the addiction and desperation is real and just playing a game is not enough for some people. Hell, the steam level epeen chasing is more of a game than actual gaming is for some.
 
So like achievements, but collectible cards, that people buy and sell for real money?

Blimey.

So cheap shitty assest flips can just be vehicles for trading card flipping?

when collect all the cards in a set, you craft a badge and earn exp towards your steam profile. You'll be surprised at the amount of people obsessed with leveling up their steam account.
 
So you can sell you trading cards from steam? How and why?

You never used steam don't you?

You just have to left the game open, that would give you 3 -6 cards depending on the game, and you sell them on the steam market (you got steam wallet in return).

I guess for that amount that you sell, Valve gets some real money out of it, as well the developer.
 
Yup and if you look through the discussion threads for games you can see comment after comment from people fucking desperate for cards. If you don't have cards and trophies your discussion thread & comments will be full of "I'll buy it when you add cards and chievo's" or "When are cards and trophies coming?"

Sadly, the addiction and desperation is real and just playing a game is not enough for some people. Hell, the steam level epeen chasing is more of a game than actual gaming is for some.

when collect all the cards in a set, you craft a badge and earn exp towards your steam profile. You'll be surprised at the amount of people obsessed with leveling up their steam account.

Sounds like it could get horribly addictive.

I don't mind all this kind of thing, it just gets a bit muddy when money is involved, and developers can game the system by just churning out crap and relying on the trading cards to make their products sale worthy, that takes the pee a little bit.
 
Steam Cards and Steam Gems are the point at which I became Seymour Skinner/Armand Tamsarian.
"Am I so out of touch? No, it's the children who are wrong"

Just, why?
 
So like achievements, but collectible cards, that people buy and sell for real money?

Blimey.

So cheap shitty assest flips can just be vehicles for trading card flipping?
It goes beyond that. Cards will almost always sell, so during steam sales there are dozens, probably hundreds of games that go for cents and their cards are actually more valuable than what you would pay for the game itself.

I imagine it's a big hassle to do it, but there are people who buy all these games for next to nothing, idle them to get all the cards, then sell them for a tiny profit. They can turn $10 in shitty games into $30 in their steam wallets with a lot of dedication (it's also probably people that don't have to pay for power themselves and with too much time on their hands).
 
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