Is Steam really a monopoly when Valve doesn't try to stifle competition and no other company could be bothered (besides maybe GOG) to make a half decent store?
this post was submitted on 24 Sep 2023
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It is a monopoly - they just don't abuse it as much against their audience.
For developers it's either take their 30% deal or just don't sell your game because a lot of people only use steam.
Not even Cyberpunk or the Witcher could sell more on gog than on steam even though you knew that there the developers got 100% of the money spent. Gwent standalone flopped so hard on GOG that it had to be rereleased with limited features on steam and sold more there
People are just fundamentally lazy so it totally is a problem that you have one store with such a massive market share even if it's very convenient for the end-user they can completely exploit their position against publishers.
Sure EPICs way of making games exclusive to their store is not elegant but without that no-one would choose that store over steam
They are a monopoly because they.....provide the best most fair platform. Also why would linux users support ubisoft or epic.
Most fair? 🤔 Epic's cut on the sale is lower than Valve's...
And yet they charge the same amount...
Seems they use that as a way to get developers to join them, then guilt consumers into using their less useful platform.
I think it's better to reframe the question as "Are there downsides to Valve's PC market dominance?" or "How is Steam's 30% cut different from Xbox or Playstation?"
For the latter: it's worth noting that Microsoft and Sony sell their hardware at a loss, and make up the difference through software, so there are obvious developer benefits to the 70-30 split. For Steam, the equivalent value-add for developers is only the platform itself, and I would wager for many of those developers the biggest reason for selling on Steam is not the feature set - though obviously useful - but because that's where the users are.
So, users get a feature-rich distribution platform, and developers (and by extension users) pay a tax to access those users. So the question is, how fair is that tax, and what effect does that tax have on the games that get made? Your view on that is going to depend on what you want from Steam, but more relevant I think is how much Steam costs to operate. How much of that 30% cut feeds back into Steam? My guess is not much; though I could be wrong.
But anyway, let's imagine you took away half the 30% cut. Where does that money go? Well, one of two places: either your pocket, or the developers (or publishers) pocket (depending on how the change affects pricing). The benefits to your pocket are obvious, but what if developers just charge the same price? Well, as far as I'm aware, a lot of games are just not profitable - I read somewhere that for every 10 games, 7 fail, 2 break even, and 1 is a huge success - so my personal view is that this is an industry where developers need all the help they can get. If that extra 15% helps them stay afloat long enough to put out the next thing without selling their soul to Microsoft or Sony or whoever is buying up companies these days, and Steam isn't severely negatively impacted, I'd call that a win.
But of course, that won't happen, because Steam has no reason to change. That's where the users are, and they are fine with the status quo.
I think you undersell how feature rich steam is for both users and developers.
They offer community forums, reviews, mods through workshop, cloud saves, automatic controller support, openish vr ecosystem (epic cant even do vr, if you buy a vr game you likely need to use steamvr anyway), broad payment and currency options, regional pricing and guidelines, remote play, and more I'm sure.
This is much more feature rich than even console platforms, so I think the 30% fee is justified.
And they do this all without really locking down their ecosystem.
I don't dispute they provide value, but why 30%? Why not 35? Or 25? or 80? or 3? or 29? I don't know.
I'm curious, how much of that 30% do you think feeds back into making Steam better and keeping it running?
Probably more than a public company, that has to pay dividends and prove worth every quarter.
No, it's not a monopoly. They aren't even a gatekeeper as defined recently by the EU.
The most successful PC games (Minecraft, Fortnite, Roblox) aren't even on Steam.
That doesn't mean anything. Jesus Christ these arguments that valve isn't a monopoly are just so incredibly weak. They've created a fucking cult.
One aspect through which one could argue that they might stifle competition is their price parity rule, for which it seems they are being sued. See here (not sure if there is any new development.
Hard to compete with steam if you cant at least do it through lower pricing. Although this article suggests that at least for epic exclusives publisher seem to prefer to just pocket the difference, rather than pass on those savings.
Isn't that just saying you can't sell access to a game on steam (through a steam key) for a lower price than what's on Steam? It's not like they can't just offer a lower price... just that they can't offer it for a lower price bundled with Steam access.
So they can offer a lower price, just not as a third party through Steam itself.
If that's the case, why do people use sites like humble bundle when they could individually buy the games from steam?
Humble Bundle has a special relationship with Valve iirc, because of the charity work they do.
Doesn't explain all the other games sold for cheaper than steam when you take a look at isthereanydeals. Or the bundles fanatical offers with no charity involved.
Could be secondhand key resellers who have no deals with Steam regarding sales.
It's incredibly frustrating from an ideological perspective that the whole PC gaming industry runs on a benevolent dictatorship by Valve.
I mean they have near total control not just over sales, but over the gaming software installed on our PCs. They have the power to do whatever, whenever, to whoever.
But at the same time, they're cool people with good products who have good stewardship of this role.
So we uncritically give them all the power.
People don’t remember what pc gaming was like before Steam. Between the reviews, discussions, guides, workshops, achievement and playtime tracking, friend functionality, and shopping options (gifting, wishlist, instant return, etc.), Steam was, is and remains to be a fucking god send. I wouldn’t be pc gaming right now if it wasn’t for Steam.
I'd love competition in the Linux gaming space, but none of them even attempt to support it
Itch and GOG have ~~decent~~ linux support
No they don't lol. GOG doesn't even have a client, you have to use Lutris or Heroic Launcher that support it.
Itch has a half implemented Linux client that they gave up years ago and is straight up unusable/broken. The client is worse then a web wrapper and nas no support for Wine, so if the game doesn't have native Linux support, it just won't run through the client. It will download exe's that won't actually run and silently fail, and doesn't have any wine support.
They don't have a client but both allow you to just download the game and run it from a .sh that installs it in the local folder. That's enough for me but I agree it may not be for everyone.
A monopoly is a monopoly. Just because Steam is a good store today doesn’t mean they deserve to hold a monopoly over the pc gaming market. So what happens when Valve has crushed every competitor? Gamers and devs have nowhere to go if Steam turns to shit. Eventually there will be a change of guards at Valve’s C-suite when Gaben retires or is dead. There is a good chance that those new execs will hollow out Steam and extract all the value out of it for their own benefit by screwing over the customers and developers. And they can get away with that if there is no competition. Competition is what keeps Valve in check.
But they haven't crushed any other competitor through any mechanism but having a dramatically better product.
They don't force you to be exclusive to be on steam. They don't force you to implement any of their Steam stuff. They are very permissive unless you do shit that potentially exposes them to liability down the road, like the NFT nonsense.
And they let you generate keys for literally free to sell on other stores.
All their stuff companies use is because it's things customers value.
When they started, they did used to force you to use products edit: aside from their own games(fair cop), some 3rd party games like Lost Planet also required it.
Certain games, and not just valve games, you'd buy in a store and the disc would force you to install and create a steam account to play the single player offline game.
They're a distribution mechanism. If you buy a Steam game you need Steam. Allowing developers to require Steam to play their game is not anticompetitive or in any way unethical.
They didn't force any developer who wanted to sell games on Steam to only sell games on Steam. That's what would be anticompetitive and abusing their market position. Games choosing to only distribute through Steam because there's no other storefront that wouldn't be a worse value if it was free isn't Steam doing something wrong.
My point is that they did initially to force usage. I'll edit the post with the game name when I get home.
Edit: Lost Planet. It had a disc but required you to sign up for and use steam to play it.
Looks like it was a console exclusive before it released on Steam, if you're talking about Lost Planet: Extreme Condition (which is the only one I can find by that name).
Do you have more information about the release? Or perhaps it's a different game?
I'm one of the few who actually like the existence of Epic. Like, not necessarily Epic itself, but some serious competition is needed. I personally would've loved it if the competition was GOG, but it seems consumers don't particularly care about ownership, so we have Epic.
The problem is that all the competition to steam is far far inferior to steam in technology and ideology and future prospects. Steam isn't a publicly traded company, has features that are pro consumers, is supporting other OS's and doesn't have a CEO that is a prick like epic.
Epic launches my games, Steam is full of bloat that I never use... 🤷
That "bloat" is 99% of the reason people use it.
Gamers have gotten quite lucky so far that the company that has been in the position to turn the screws and establish a monopoly has been content to only make gobs of money, instead of trying to make all the money like pretty much every other entertainment industry.
Yeah, the reason why Valve can do that is that they are not a publicly traded company but a privately owned one. Gabe Newell doesn’t have a fiduciary duty to any shareholders, so they don’t have to squeeze every penny from their users or abuse their quasi monopoly.
If Gabe ever leaves Valve and the powers that be decide to go public I hope it’s done in a way that gives power to the users instead of faceless investment firms. I don’t even know what that would look like but I fear the day that Valve comes under control of an ex-AAA game company CEO or the like.
Bro why do you think those Steam levels and experience are for? Obviously they're gonna divest the company across the playerbase and divvy it up based on Steam levels!
/s
I wish something like that existed, once you go public you are obligated to grow and that has limits so you always end up squeezing your users! :/
I said this elsewhere but that’s not true. The idea that publicly traded companies have a duty to maximize shareholder value is a myth, and anyone privileged enough to sit on a board of directors likely knows this. See this article for an explanation. Every time a board squeezes a company for short term profits at the cost of long term good will, long term profits, etc., that is because they chose to do so.
Well the relation is wrong but it's a real thing, they have a duty to grow infinitely or the sroxk price will crash and since that's impossible to achive they essentially have to squeeze their users for short term gains to seem like they still grow sooner or later
it’s a real thing, they have a duty to grow infinitely or the sroxk price will crash
This isn't a thing.
Here's another article explaining why and how it isn't a thing, and also why people like you think it is.
Honestly, I don't care to continue this conversation, even the attempt to convince people like you is rather pointless
“People like me” meaning “People who cite their sources and investigating claims before making them?” Yes, I can understand why you might find it difficult to convince “people like me” to believe something that’s trivially shown to be false.
Yeah I'm not really to call Valve a good guy company, but I might be willing to call them the least bad company
People saying Steam doesn't have a monopoly because other stores exist, is the same as saying Microsoft doesn't have a monopoly on PC Gaming because Mac and Linux exist. Technically true, but ultimately meaningless because its their market power that determines a monopoly, not whether there are other niche players.
While Valve and Steam have generally been a good player, and currently do offer the best product, they still wield an ungodly amount of influence over the PC gaming market space.
Epic is chasing that because they really want what Valve has, though no doubt they plan to speedrun the enshittification process as soon as they think it safe.
Steam is a natural monopoly, which although still not entirely good but are a wholly different beast from monopolies made by exploiting flaws in the system
What's a natural monopoly? Valve currently has the freedom to implement anything they want within an extent because they're so popular. If they decided they wanted to charge devs 35% would people stop using it? Probably not. Steam's monopoly is as bad as any other for the same reason any other monopoly is bad.
A natural monopoly is when an industry is difficult to break into, making competition difficult or impossible. This favors incumbents, in fact, a lot of industries are natural monopolies (pharma, aerospace, chip production).
The difficulty of breaking into an industry may be because:
- new players cannot compete with established scale
- start up costs require a nearly all-or-nothing approach, high risk
- regulations tie the hand of new innovators
Look it up? It's an actual term, not something I made up for whatever reason you assumed to argue against something I didn't even say. I already said it's still not a good thing, it just would have happened regardless of whoever that was able to do it on scale first.