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Paradox Interactive: "The 70/30 revenue split is outrageous"

I did not said they are restricted to hardware platform...

I said it is dumb to compare share between a hardware platform and a store front... they delivery more so they ask more... any store front trying to match that is ridiculous.

How much other store front set their share? Steam is basically way above all of them and some say it is the standard when it is not.
Are Sony and Microsoft giving away their hardware free and making it back with the 30%? They way you talk about it suggests they are. If they're not then in what way are they delivering more for that 30%?

Epic choosing to undercut Steam and force other, smaller, storefronts hands does not change the fact that 70-30 is standard. It's standard on the consoles. It's standard on PC. It's standard in retail.
It's standard.
 
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ethomaz

Banned
Are Sony and Microsoft giving away their hardware free and making it back with the 30%? They way you talk about it suggests they are. If they're not then in what way are they delivering more for that 30%?

Epic choosing to undercut Steam and force other, smaller, storefronts hands does not change the fact that 70-30 is standard. It's standard on the consoles. It's standard on PC. It's standard in retail.
It's standard.
It is not standard lol
70/30 was the retail standard.
Digital was never 70/30... just look at others store fronts.
 
It is not standard lol
70/30 was the retail standard.
Digital was never 70/30... just look at others store fronts.
Someone wasn't paying attention. Until Epic arrived 30% was standard. I also note you neglected to answer my question...so I'll ask again.
Are Sony and Microsoft giving away their hardware free and making it back with the 30%? They way you talk about it suggests they are. If they're not then in what way are they delivering more for that 30%?
 

ethomaz

Banned
Someone wasn't paying attention. Until Epic arrived 30% was standard. I also note you neglected to answer my question...so I'll ask again.
You are dumb comparing a platform holder share with Steam afain lol Steam has no platform, no closed ecosystem, etc.

And no... it was not the standard... show me which other digital store front asked 30% like Steam?

Neither Amazon ever asks that cut.
 
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Bryank75

Banned
Well, that is the benefit of being on an open platform. There is competition and stores can undercut eachother and if they want, they can try and make their own launcher.
I don't really get why PC gamers trumpet on about the benefits of the open platform and then rail against the obvious outcomes and consequences.
 

ethomaz

Banned
Well, that is the benefit of being on an open platform. There is competition and stores can undercut eachother and if they want, they can try and make their own launcher.
I don't really get why PC gamers trumpet on about the benefits of the open platform and then rail against the obvious outcomes and consequences.
Exactly.

How the things are happening (with more and more devs not agreeing with the cut) Steam will either drop the cut in the future and lose more and more devs in the process.

Consumers is not a issue because they will buy the game in any play it is available... a lot of examples of games breaking records even without being on Steam.
 
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... afain lol Steam has no platform, no closed ecosystem, etc.

And no... it was not the standard... show me which other digital store front asked 30% like Steam? ...
GOG, until Epic forced their hand, GOG being the only other major player that accepted third party titles at the time. Like I said, someone wasn't paying attention.

Also...you conveniently still haven't answered this question...
Are Sony and Microsoft giving away their hardware free and making it back with the 30%? They way you talk about it suggests they are. If they're not then in what way are they delivering more for that 30%?
You also still haven't explained how Steam is not a platform despite all the features and support they provide.
 
It is not standard lol
70/30 was the retail standard.
Digital was never 70/30... just look at others store fronts.
LOL you think 70/30 was the retail standard? I remember EVERYONE getting a cut. It was 30% for the platform holder, a cut to the retailer itself, a cut to the manufacturing process, and a cut to the publisher. They had it so much worse before steam showed up. It was so bad that the PC market was almost dead before Steam came in 2004-2005. Do you remember how bad pc ports were? Do you remember how many games were skipped entirely for the PC market? Steam single handedly revived the PC market and made it worthwhile for companies to make pc games again. Otherwise I very much doubt PC gaming would be in the current state it is if it wasn't for valve. And this is from someone that has 400+ physical PC games.

Old article about breakdown.


So 70/30 would be roughly 42 dollars for a digital game sold. 18 going to steam. That's with the developer selling the games themselves without a publisher.

Now look at the publisher on the old model. They made 27 dollars. How much did the actual developer get? I damn well know it's not anywhere near what they get now with steam or digital PSN/Xbox/Wii/App Stores
 
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ethomaz

Banned
It was so bad that the PC market was almost dead before Steam came in 2004-2005.
Bullshit revisionist history?

PC game marketing did grow before and after Steam... for more shocking it is to you PC gaming market have record sales the years prior Steam launch.

After Steam it continued to grow... to be fair it never stopped even with so many saying doom.
 
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I would support epic. They charge 12% so more money goes to those who make games. I don't understand how devs are being greedy? Isn't steam being greedy by same logic? Pretty sure it must cost a lot more to make the game for current gen.

I don't know specifics of sony/ms. They probably include platform holders fee in it? They do invest a lot in platform so the fee seems fine.
 

Ixiah

Banned
I would support epic. They charge 12% so more money goes to those who make games. I don't understand how devs are being greedy? Isn't steam being greedy by same logic? Pretty sure it must cost a lot more to make the game for current gen.
Just because Valve set up the same prices as everyone else at the Time doesnt make them Greedy.
Also, just because Epic undercut the Standard doesnt mean the Standard is overpriced.
And mark my Words, once the Fortnite Money dries up (and it will) you are gonna see Epic crank up the Prices or charge extra for Features that are free on other Plattforms, in the hopes that by then, they have lured enough Cows to their Pasture so now they can Milk them realy good.
Because if you think for one Second Tim Sweeny isnt an Asshole who gives a fuck about Customers, just because they throw free Games around, good Luck.
The Epic Store is literally the creepy Van with "Free Candy" written on their side.
 
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lukilladog

Member
Guys, what´s more likely to happen if devs get more money for every unit sold?. The quality of games in general increases, or the world gets more flooded with irrelevant games?.
 
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Guys, what´s more likely to happen if devs get more money for every unit sold?. The quality of games in general increases, or the world gets more flooded with irrelevant games?.

Generally devs manage to keep quality consistent. If i like a dev I usually buy most of their games. Like id, Obsidian etc.

So supporting devs i like more should in theory allow them to do what they do well.
 

Paasei

Member
Then it's just a shame that your consumers - the reason you even make money - have no benefit at all of moving over and/or using more platforms.....
 

lukilladog

Member
Generally devs manage to keep quality consistent. If i like a dev I usually buy most of their games. Like id, Obsidian etc.

So supporting devs i like more should in theory allow them to do what they do well.

You are cherry picking devs, I´m talking in general.
 

sol_bad

Member
It is not standard lol
70/30 was the retail standard.
Digital was never 70/30... just look at others store fronts.

What drugs are you on brah? The 30% cut has been standard across the board whether retail or digital.
Also, all you people chasing after Valve with pitchforks demanding they lower their percentage cut because they are just a digital store front. Why not turn your pitchforks on websites like Greenmangaming, Humble Bundle, Fanatical, Gamergate and Indiegala where they are literally just digital store fronts and offer nothing for the end user.

Why not chase after Google with pitchforks and demand they lower their 30%. If I rent/buy movies from the Google Play TV app, I'm not using their phone hardware, how dare they charge distributors that extra 30%. The thought that hardware must be involved for a comppany to charge 30% is ludicrous. You can rent and buy movies on your TV which are not sold by any platform holders.
 

Three

Member
What drugs are you on brah? The 30% cut has been standard across the board whether retail or digital.
Also, all you people chasing after Valve with pitchforks demanding they lower their percentage cut because they are just a digital store front. Why not turn your pitchforks on websites like Greenmangaming, Humble Bundle, Fanatical, Gamergate and Indiegala where they are literally just digital store fronts and offer nothing for the end user.

Why not chase after Google with pitchforks and demand they lower their 30%. If I rent/buy movies from the Google Play TV app, I'm not using their phone hardware, how dare they charge distributors that extra 30%. The thought that hardware must be involved for a comppany to charge 30% is ludicrous. You can rent and buy movies on your TV which are not sold by any platform holders.
Please don't pring Humble Bundle into this. They are lower than 30%, have really cheap games and 10% of that 25% goes to charity.
 

sol_bad

Member
Please don't pring Humble Bundle into this. They are lower than 30%, have really cheap games and 10% of that 25% goes to charity.

I'm just pointing out that it is stupid to chase after Valve when they provide a very good free service with more features than what is offered on consoles that you have to pay for.
People keep arguing that Steam is just a digital store front when it's not. The other stores I mentioned above are just store fronts but these idiots aren't attacking them.

*EDIT*
And I totally understand that these idiots aren't attacking the other store fronts because they know fuck all about PC gaming.
 
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You are cherry picking devs, I´m talking in general.

How can anyone predict what devs will do in general.

One thing I know, more funds for valve/steam benefits no one. They don't invest in cutting edge games like other platform holders do.

They are simply benefitting from the fact that they were first. Even iphone /apple has to put in sufficient work to survive.
 
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Advantages and disadvantages of digital stores are another topic.

I'm just saying 30% is not as much as it sounds considering all the factors.

Check my post history if you want to know more about my arguments against EGS and Sweeney.
I knew after I posted it so I just threw in the TL;DR in there. I just wanted to get my thoughts out because people are becoming more and more crazy about digital games, even trying to downplay physical so I figured I had to be clear beforehand.

But back on topic, is Valve paying devs or even publishers for exclusivity? I don't think so, but I only wonder because of the fact that that should narrow these sort of costs down even more. 30% to preserve their games yes but no way for the developers to recoup those costs.

IMO, EGS is more developer-friendly, but Steam is a bit more consumer-friendly.
 

V4skunk

Banned
It's hilarious how people rag on Steam for the 70/30 split! Yet i don't see Epic selling their games at a discount.
Steam all day every day. Epic isn't getting a penny of my money ever.
 

sol_bad

Member
I knew after I posted it so I just threw in the TL;DR in there. I just wanted to get my thoughts out because people are becoming more and more crazy about digital games, even trying to downplay physical so I figured I had to be clear beforehand.

But back on topic, is Valve paying devs or even publishers for exclusivity? I don't think so, but I only wonder because of the fact that that should narrow these sort of costs down even more. 30% to preserve their games yes but no way for the developers to recoup those costs.

IMO, EGS is more developer-friendly, but Steam is a bit more consumer-friendly.

How are EGS more developer friendly when they are cherry picking what they want on their store? And forcing indie devs on their store only? How is that developer friendly?
 
IMO, EGS is more developer-friendly, but Steam is a bit more consumer-friendly.
Large developers don't see a penny of it, it all makes its way into the pockets of the likes of Bobby Kotick and Strauss Zelnick (and they really don't need that extra money). That goes for the exclusivity money too. And small indie developers only get approached by Epic once they've already seen success, generally on Steam, otherwise Sweeney personally tells them to fuck off over dinner, at which point they're already making bank too, and are probably well over the threshold to net them the 20% split with Steam. All of this is ignoring the fact that any extra money for the publisher / developer comes at the cost of the user. The benevolent Lord Gaben meme is a thing for a reason; Steam may be a tour de force in the PC market, what some might mistakenly call a "monopoly", but for a company with such a huge marketshare they're extraordinarily pro-consumer.

Edit: And sometimes it literally comes at the cost to the consumer. When GOG decided to match Epic's revenue share they did so by ending the Fair Price Package.
 
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How are EGS more developer friendly when they are cherry picking what they want on their store? And forcing indie devs on their store only? How is that developer friendly?
Because they're splitting costs 88/12 and using that money to pay them for exclusivity, at least IMO.
 

lukilladog

Member
Because they're splitting costs 88/12 and using that money to pay them for exclusivity, at least IMO.

Which offers $0 to the not chosen ones, making Valve remain as their best chance to achieve anything.




How can anyone predict what devs will do in general.

One thing I know, more funds for valve/steam benefits no one. They don't invest in cutting edge games like other platform holders do.

They are simply benefitting from the fact that they were first. Even iphone /apple has to put in sufficient work to survive.

Even more attractive market conditions will atract more people into making games, which will make the flood of games even worse. Game makers making more money doesn´t necessarily translate onto higher quality games, better writting, better AI, better art, less bugs, nor less crunch for their employees, that´s a fact.

As for Valve making money that benefits no one else, I would agree if they didn´t deserve it, but the store that makes the job better needs to be rewarded, that´s the point of having free markets and competition and that´s why you have Epic now, they want the cake so bad 🤭 . As for the cut appearing too big because they don´t make hardware and "cutting edge games", it does not matter, all they need is enough game makers willing to pay, just like the Console companies. You see, sony makes like 4 times more money than Steam, they could invest couple billion every few years, drop the cut to a small fraction, and still make more money than Valve, but they wont do it. Who is the villain?.
 
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I'm not surprised Paradox is engaging in this behavior. Johan and most other dev's attitude towards customers has been really touchy lately. I've no doubt they actively hate most of their customers.

Which shouldn't be a surprise since some of their key members are former SomethingAwful posters, who are lolcows of the highest caliber.

Johan's behavior after the release of Imperator should have keyed everyone into how dysfunctional that attitude is. They feel like they're entitled to your money and if you don't want to give it to them they start calling you "entitled" instead.
 
Which offers $0 to the not chosen ones, making Valve remain as their best chance to achieve anything.






Even more attractive market conditions will atract more people into making games, which will make the flood of games even worse. Game makers making more money doesn´t necessarily translate onto higher quality games, better writting, better AI, better art, less bugs, nor less crunch for their employees, that´s a fact.

As for Valve making money that benefits no one else, I would agree if they didn´t deserve it, but the store that makes the job better needs to be rewarded, that´s the point of having free markets and competition and that´s why you have Epic now, they want the cake so bad 🤭 . As for the cut appearing too big because they don´t make hardware and "cutting edge games", it does not matter, all they need is enough game makers willing to pay, just like the Console companies. You see, sony makes like 4 times more money than Steam, they could invest couple billion every few years, drop the cut to a small fraction, and still make more money than Valve, but they wont do it. Who is the villain?.


Sony employs thousands of people worldwide. It operates on a different scale and is much more beneficial to have around.

Valve is basically few coders holed up in hq. If a company makes good money, its ok. But it must contribute to gaming community or society in a meaningful way.

Their store is best one no doubt. But I would draw a line on how much they benefit from goodwill of the gaming community.
 
Sony employs thousands of people worldwide. It operates on a different scale and is much more beneficial to have around.

Valve is basically few coders holed up in hq. ...
Jesus...fuck no. You realize Valve have datacenters all around the world for their Steam CDN, right? You realize people have to be hired to maintain those and minimize downtime, right? They have support staff for third party developers. They have the Steam developers. They have game developers (although admittedly their output of late has been...lacking...). They have PR guys. They have customer support. Valve is not just Gaben and a handful of his college buddies holed up in an office somewhere laughing maniacly whilst they rake in an untold fortune.
 

lukilladog

Member
Sony employs thousands of people worldwide. It operates on a different scale and is much more beneficial to have around.

Valve is basically few coders holed up in hq. If a company makes good money, its ok. But it must contribute to gaming community or society in a meaningful way.

Their store is best one no doubt. But I would draw a line on how much they benefit from goodwill of the gaming community.

They don´t need to do that, companies are not friends with you, nor your society:

 

Lister

Banned
Hasn't Epic actually gone on record stating that 12% is not sustainable?

They are doing the 12% cut plus the money hats to gain market share, not because this arrangement works for their bottom line.

This is a store that lacks most features I like from Steam currentLy has no plans to match Steams feature set, ever.

Their plan is to implement the bare minimum set of features where players aren’t calling it a dumpster fire and cornering the big aaa publishers.

That not a market player I want to support as a consumer.
 

Dontero

Banned
Jesus...fuck no. You realize Valve have datacenters all around the world for their Steam CDN, right? You realize people have to be hired to maintain those and minimize downtime, right? They have support staff for third party developers. They have the Steam developers. They have game developers (although admittedly their output of late has been...lacking...). They have PR guys. They have customer support. Valve is not just Gaben and a handful of his college buddies holed up in an office somewhere laughing maniacly whilst they rake in an untold fortune.

Please do your research. Velve is bilion dollar company that doesn't even hire 1000 people.

Food shops operate on 1-2% margin rates with all physical stuff like distribution, ads, workers, renting space so on and so forth and yet they can profit while Steam 30% cut supposedly can't or something.
 
Please do your research. Velve is bilion dollar company that doesn't even hire 1000 people.

Food shops operate on 1-2% margin rates with all physical stuff like distribution, ads, workers, renting space so on and so forth and yet they can profit while Steam 30% cut supposedly can't or something.
Please do your research. Food shops don't have a massive CDN to maintain, software to develop and aren't plowing god knows how much endless money into developing a game that will likely never surface.
 

lukilladog

Member
Please do your research. Velve is bilion dollar company that doesn't even hire 1000 people.

Food shops operate on 1-2% margin rates with all physical stuff like distribution, ads, workers, renting space so on and so forth and yet they can profit while Steam 30% cut supposedly can't or something.

You really think this is a good argument right?.

I wonder why?. Because nobody cares how much money companies bank, as long as they make the best products or services.
 

A.Romero

Member
Guys, if you really want to understand what are the costs of providing cloud services, check out this site: https://aws.amazon.com/pricing/

Just throw a server configuration and multiply it by 100 or 1000 or whatever is in your mind Steam has behind the courtains. Now think about this: Imagine you bought a game (any game) 10 years ago. Let's say that you paid full price. Valve gets 30% so that's $20 USD.

Let's say that you really like that game and you play it once a week. Those $20 USD Valve kept? They are long gone but you can still play the game if you want to.

That's not even considering transaction fees and other stuff.

Now imagine the same scenario but considering you bought the game on sale, for 20 USD. Steam gets less than $7 USD and still gives you exactly the same service than any other user, regardless of where you are, how much you paid and how you paid.

I understand a lot of developers are starving but that's not Steam's fault.

We have the power to pay for games on day 1 but many avoid it. Also, nothing is stopping us from just donating 18% of the games price to the developer if we feel so inclined.

Sweeney is throwing bullshit around trying to get his store off the ground. He is doing what Steam does but passing some of the fees along and eating some of the costs with the intention of gaining market. That's fine and dandy and you are free to get your games wherever you want... Just get your facts straight.
 

Dontero

Banned
You really think this is a good argument right?.

I wonder why?. Because nobody cares how much money companies bank, as long as they make the best products or services.

Yes because point of argument was that "30% is what those companies deserve and can't work without". Epic went with 12% and suddenly there are shitload of fanboys saying for some weird reason that 12% is not ok as if they are sitting in Gabe place and know what they are talking about.

Which is why i used Food industry to show how ridiculous those people are. If company hiring thousands of people with physical side can survive on 1-2% margin rates then company hiring couple hundred people can survive on 5% or even less. Especially since price of bandwidth and storage space fell down dramatically over the years which should be their most costly part of running business.
 

RedVIper

Banned
The cost of making a game triple A game has dramatically increased. The fact that it hasn't increased is amazing.

The profits of making it have also increased, gaming keeps growing.

The profit per unit might have gone down, but total profit increased.
 

Dontero

Banned
Then why are we still being charged $60? This should go down too.

Because you are buying games for 60$ and see nothing wrong with it. 60$ is completely arbitrary number that has 0 to do with game budget or sales.

Secondly there are now plenty of games that release as new and are not 60$ it is just that the biggest games out there cost that much.

I am mainly PC player and i never pay even 30$ for anything.
 
What do they need to wake up from?

The fact that we have not yet seen half life 3 is a proof even 500 million usd potential profit is nothing to them. I wouldn't fill their coffers further.

I must admit steam is best store and I don't have a choice and use it the most.
 

lukilladog

Member
Yes because point of argument was that "30% is what those companies deserve and can't work without". Epic went with 12% and suddenly there are shitload of fanboys saying for some weird reason that 12% is not ok as if they are sitting in Gabe place and know what they are talking about.

Which is why i used Food industry to show how ridiculous those people are. If company hiring thousands of people with physical side can survive on 1-2% margin rates then company hiring couple hundred people can survive on 5% or even less. Especially since price of bandwidth and storage space fell down dramatically over the years which should be their most costly part of running business.

His point was that they have a lot more expenses than just a few coders in HQ.
 
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