Steam Parent Company Valve announced a new revenue share for its online video game market late Friday night, with the…
Steam Parent Company Valve announced a new revenue share for its online video game market late Friday night, with the change in the distribution agreement giving developers more money as the number of sales units increases. Normally, Valve takes about 30 percent of all game sales on Steam, with some exceptions for games for smaller developers in its Steam Direct program. It will be the case for the first $ 10 million in sales that a gambler or publisher earns. For all sales between $ 10 million and $ 50 million, the breakdown goes to 25 percent. And for every sale after the first $ 50 million, Steam will only take 20 percent down.
“The value of a large network like Steam has many advantages that contribute and shared by all participants. Finding the right balance to reflect these contributions is a tricky but important factor in a well-functioning network,” the company wrote in a statement on the Steam Community page. “It has always been evident that successful games and their big audience have a significant impact on network effects so that Steam recognizes and continues to be an attractive platform for these games is an important goal for all participants in the network.” The valve also allows developers to be more transparent about game sales with an update of the privacy clause in the agreement.
This updated agreement marks the most significant change of Steam’s economic conditions in the store’s 1
5-year history and it seems clearly designed to attract more developers to stay instead of freeing games or joining the growing number of competing online game distributors .
Steam became the dominant platform for PC games in the last decade, primarily by resolving restrictions to get on its platform and becoming the primary PC travel players to collect and start titles, all done from a single program. In 2017, Valve took $ 4.3 billion in Steam revenue alone, not even counting microtransaction and downloadable content, according to gaming analyst Steam Spy.
But in recent years, major game developers and publishers have created their own distribution channels to directly control aspects of their businesses, such as copyright restrictions, repayments and game updates, as well as to prevent revenue growth Steam otherwise. Blizzard, EA, Epic and Ubisoft now run their own launchers, and Valve has seen its influence begin to decline.
In addition, as Valve found out in controversy over his increasingly salmon setting of violent, hateful and other dubious content on his platform, a number of smaller, more curated game distributors like Itchio have become popular options, especially for big names indie game makers. Discord, the only company with the social infrastructure of rival Steam, recently launched its own Steam competitor and put another existential threat to the dominance of Valve’s marketplace.
All this contributes to an uncertain situation for Steam. Although it is still the largest PC gaming market, with more than 150 million registered users, the company clearly recognizes that it can not rest on its laurels. Valve has begun to borrow some social features from Discord to keep its built-in social advantage of slipping away and planning to launch its store in China, the world’s largest gaming market, sometime soon. But changing the Steam revenue sharing to more generous for developers is really a very effective strategy to keep developers happy and sticky.