this post was submitted on 11 Jun 2024
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Just because there's an outdated industry standard doesn't mean it should be perpetuated, let alone supported, for eternity. Valve's server hosting costs on a per-installation basis have fallen substantially since they first launched Steam, so there's no reason why the 30% cut is still necessary; even 20% would leave them a sizable profit margin. I'm not a fan of the Epic Game Store for bribing companies to not release their games on Steam for a set amount of time, and choose not to use it as a result, but it's time that the 30% industry standard be dropped. In purchasing a game I want to support continued development of that franchise, and $15 of a $50 purchase going to the storefront is not only excessive and inflationary, but harms developers as well.
I guess you wouldm't be complaining if they never improved efficiencies then, since decreasing costs should apparently be passed on to distributers. Shame on them for improving their business sonthey could use those profits to create the steam deck and other benefits for gamers instead of propping up the profits of game companies!
Should game companies lower their proces based on volume of sales when they make 'enough' profit?
Valve could still operate as it currently does, including having sufficient profits to account for R&D and long-term costs, at a lower cut of platform sales (as another commenter mentioned, Gabe Newell's billion dollar yacht collection is demonstrative of the platform's profitability, especially when one considers how much it costs to maintain ships). Products such as the Steam Deck make money for Valve too, as Steam Deck users (myself included) statistically buy more games on Steam as a result. I don't support profiteering efforts by game publishers either, such as the Factorio price increase attributed to inflation, $70 game releases attributed to inflation when digital releases have reduced their costs, and micro transactions in general. In any case, however, given that cost increases are always the consumer's responsibility, cost decreases should not simply be a means for companies to bolster their profit margins.
I am fine with someone who set up and runs a successful business that is in no way predatory and is a benefit to employees, consumers, and the companies that use their product to have an excess amount of money. They are doing capitalism the right way and actually earned the benefits.
Games going up to $70 are not becsuse of the 30% cut. They wouldn't go down if that percentage dropped either. I play multiple games that were always sold at $40 or less as full games and they have been massively profitable.
So it's not predatory to let games become more expensive while also reducing running costs? Because if you run the numbers it means they're just increasing their profits by charging the same % and forcing devs and publishers to increase the cost of games to compensate for development costs increasing. The only winner here is Valve, maybe you should start defending your own interests instead of defending the interests of a billionaire.
Steam is not making the games more expensive, the game studios/distributors are increasing the prices so they can make more profit.
It you need to make 30$/copy to cover costs in 2015 and Steam is taking 30% you need to sell for 43$/copy, Valve is making 13$/copy.
Development costs go up by 20% over the next 10 years, you now need to make 36$/copy to cover costs, with Steam's cut you now need to sell for 51.50$, Valve is making 15.50$/copy.
If it was 15% instead? 35.50$ and 42.50$ would be the prices.
During that time operating costs for Valve has actually gone down though, so they're actually increasing their profits two ways!
But hey, let's defend their business practices so Gaben can buy a seventh yacht!
You're the one that ends up paying for it though, games could be cheaper, instead Valve just increases its profits.
I am getting my money's worth.
Ok, that's just idiotic...
Ok, then let me be an idiot while you go through whatever distributor you think gets the 'right' amount of profit.
The only reason why you think you're getting your money's worth is because your were led to believe your money is worth much less than it is. If someone can become a billionaire off your money while you're "hoping you'll be able to retire" it's because they're making too much profit off of you.
K