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Embracer says its ‘crazy’ outlay on platform fees exceeds its spend on game development
(www.videogameschronicle.com)
this post was submitted on 22 Sep 2023
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It seems like it can make sense. Platform fees aren't an initial outlay, they're effectively a cut of profits based on sales.
For the sake of argument using fake numbers, if a studio spends $1m making a game, and then they put it on Steam and it does $10m in sales, then Steam's cut of that at 30% will be $3m
So, spending more on store fees than development seems possible - especially if your game is selling really well
The percent isn't fixed at 30%, though. Big sellers lower the cut, and Steam takes literally zero from keys they sell elsewhere.
It's 30% up to $1m I believe but sure, there are complications. It's just example numbers to illustrate the point.