Despite facing increased competition in the space, not least from the Epic Games Store, Valve’s platform is synonymous with PC gaming. The service is estimated to have made $10.8 billion in revenue during 2024, a new record for the Half-Life giant. Since it entered the PC distribution space back in 2018, the rival Epic Games Store has been making headway – and $1.09 billion last year – but Steam is still undeniably dominant within the space.
Valve earns a large part of its money from taking a 20-30% cut of sales revenue from developers and publishers. Despite other storefronts opening with lower overheads, Steam has stuck with taking this slice of sales revenue, and in doing so, it has been argued that Valve is unfairly taking a decent chunk of the profits of developers and publishers.
This might change, depending on how an ongoing class-action lawsuit initiated by Wolfire Games goes, but for the time being, Valve is making money hand over fist selling games on Steam. The platform boasts over 132 million users, so it’s perfectly reasonable that developers and publishers feel they have to use Steam – and give away a slice of their revenue – in order to reach the largest audience possible.
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So is the issue that Valve kicks you off the platform if you sell your game cheaper somewhere else? That does seem a little troublesome. I don’t think Apple or Sony has those restrictions? Apple takes 30% as well, right?
Only if you are selling a steam key elsewhere, they ask you to treat them equivalently but that doesn’t mean you can’t do sales for your products on other platforms.
It’s a little weird cause it would be like buying an apple app on android to use on apple but apple doesn’t get the 30% anymore so they ask you to at least price it about the same so people don’t avoid buying from them completely.
Only if you are selling a steam key elsewhere
No. That’s not true. You’re spreading misinformation. Read the fucking lawsuit.
https://partner.steamgames.com/doc/features/keys
That’s the policy on steam keys. If you are not using their steam keys it’s not covered by their contract agreement at least.
The lawsuit is not yet finished and while we can take their complaints into account we can’t take them for fact.
The case was already dismissed once because they argued the 30% was controlling the market but it’s been there since day 1 of their storefront and has not changed to force game price changes. Beyond that they argue that Valve bought servers to take them offline to push players to them but… That’s not really on this point of price controlling or the ability sell non steam keys.Literally RuneScape does this by offering memberships not available on steam.
If you see something I am missing from the lawsuit please let me know, preferably without the hostility if you can manage.
Again, this is not about Steam Keys, it’s about Steam using shady contracts to bully developers into price parity on completely unrelated stores. Yes, runescape is cheaper on Epic, the incredibly broad nature of these rules that allows for selective wishy-washy enforcing is also part of the lawsuit.
If you see something I am missing from the lawsuit please let me know, preferably without the hostility if you can manage.
The whole thing because you didn’t read it and, given that you keep bringing up Steam Keys, which is not what we’re talking about, I’m skeptical that you can read at all.
So, you think a good way to correct someone is to directly insult them because you find their points unrelated but yours perfect? Rude. And the only thing steam controls via contract is the ability to sell your games via steam keys for price parity.
And you misunderstood my point. RuneScape isn’t even on the epic game store so you aren’t reading my words carefully. You are projecting your own hypocrisy.
No, I think you deserve to be insulted because you are talking out of your ass about something you didn’t read. Again, this is about the price veto policy. This is not about Steam Keys (here’s me hoping italics help with your dyslexia).
And yeah, I thought you meant runescape on the EGS not on their site. It doesn’t matter because it has zero bearing on the discussion, I only addressed it because you didn’t read the thing you’re talking about.
You started in with being extremely rude so I’m just gonna move to ignoring your other commentary now.
Shocking I know.
Until the case is concluded, all we have to go on is what Wolfire says. And considering who the head of that developer is, I would not take their word for anything.
Yay. An argument from character. What did the head developer of Wolfire did that hurts its credibility more than… checks notes running an illegal casino for minors?
It is true. Valve does not enforce price parity for non Steam keys. Here is an example where the dev says that they are offering a better price on EGS because of the better cut:
https://twitter.com/HeardOfTheStory/status/1700066610302603405
https://store.epicgames.com/en-US/p/heard-of-the-story-ff3758
https://store.steampowered.com/app/1881940/Heard_of_the_Story/
Pretty clear example of the same game having a lower base price on Epic than on Steam.
Wolfire claiming Valve does this is something different from Valve actually doing it, and that’s where the dispute lies. According to Valve, Wolfire’s explanation of the price parity policy is incorrect.
Here’s the policy itself: https://partner.steamgames.com/doc/features/keys#3
You should use Steam Keys to sell your game on other stores in a similar way to how you sell your game on Steam. **It is important that you don’t give Steam customers a worse deal than Steam Key purchasers. **
The policy is pretty leanient regarding the “worse deal” aspect. You’re allowed to have a sale on one platform but not on Steam, as long as you offer “something similar” at a different moment to Steam users too.
It’s OK to run a discount for Steam Keys on different stores at different times as long as you plan to give a comparable offer to Steam customers within a reasonable amount of time.
Even if you violate this policy, Valve will still sell your game, they may just stop providing you with Steam keys to sell.
I don’t see Wolfire winning this tbh.
Yes, Valve enforcing price parity only when it’s convenient for them is also addressed in the lawsuit.
The rest of your comment refers to Steam Keys. That’s literally not what we’re talking about.
But that is what the policy is about. Steam doesn’t have a price parity policy regarding general game sales.
No, it’s not. That’s an entirely different policy that you keep bringing up for no reason. That policy is also anti-consumer bullshit but I digress. What I’m referring to is the following shady wording:
Initial pricing as well as proposed pricing adjustments will be reviewed by Valve
What? That wording isn’t even relevant to the case. That’s just Valve saying they will do a review of the price changes on Steam. They set out no specific requirements (other than a minimum price of $0.99, but will try to catch errors based on their pricing recommendations). It’s similar to how Valve reviews new store pages and provides recommendations to devs on how to improve them. They do have rules against games set up for card farming scams, but that makes sense.
Wolfire’s case is about how Valve as an extremely large player is impossible to go around, so game devs have no choice but to accept their 30% fee if they want to reach most of the market out there. Valve then uses these fees to entrench this supposed monopoly position (Wolfire specifically cites the acquisition of WON back in the day, which Valve eventually shut down and merged with Steam).
Wolfire argues that a fair price is much lower than 30%, and that Valve should lower the fee and therefore have less funds to fight their competitors, creating a more competitive environment.
Yes. That is exactly the issue. It’s not only Steam Keys either as some of the cultists would have you believe. Valve does require you to offer Steam Keys on other stores at the same price that you offer the game on Steam but that’s not all. Now, while they don’t specifically forbid you to offer different prices on stores that have nothing to do with Steam, they do reserve the right (do whatever the hell you want with this one simple trick!) to veto pricing on Steam for any reason. This has been historically used by Valve to block games that offer better pricing on competing stores. It goes something like this:
- I make a game and decide I want to make $7 per sale so I publish it on my site at $7.
- I want the game to be accessible to a wider audience so I publish it on other stores.
- Epic takes 12% so I price it at $8 there in order to keep making $7 per sale
- Steam takes 30% so I price it at $10 there for the same reason.
- Valve says $10 isn’t a fair price and refuses to elaborate why, reminding me that they reserve the right to veto any price on Steam for any reason.
- I make my game $10 on all other stores
- Valve magically decides $10 was actually a fair price all along and finally publishes the game on Steam.
Wait, not trying to be a “cultist” here, but if Valve requires devs/publishers to “offer Steam Keys on other stores at the same price that you offer the game on Steam”, then why do I keep finding Steam Keys much much cheaper elsewhere? Like, all the time…
G2A and the likes don’t count. I’ve also taken advantage of the poor economy of the 3rd world to buy cheaper games. You wouldn’t ask a watch store why doesn’t Rolex force the shady guy in an alley to offer the same prices they do.
I was actually thinking places like Humble, or often times I just go straight to the publisher or Dev, since they keep 100% of their profit that way and often offer a discount.
I have never used G2A, nor any site that redistributes keys in that manner.
But in the month it took you to respond, I already read up on this, and honestly you exaggerated your claims to the extent that I’m not really interested in asking your opinion anymore anyway. Your hate boner kinda showed through.
So I guess… uh… thanks for following up anyway and have a good one!
👋
The wolfire games lawsuit is so damn cringe.
No company is your friend, but there’s a reason Steam is number 1. The reinvestment in the platform and breadth of features steam has is unrivaled.
Epic has been trying for nearly a decade now and their store doesn’t even have 1/4 the features of steam.
I love GoG though. For me they offer something steam can’t, installers for my games.
My view is if you don’t like a distribution platform taking 20-30% of the sale then don’t use that distribution platform. It’s a free market and a free internet. Use Epic, GOG, or host it yourself
If I don’t like what Comcast charges I don’t do a class action lawsuit.
If you lose access to a vast majority of the market if you don‘t use a service, it’s a monopoly. Don’t defend monopolists.
Steam does nothing to prevent running non-steam games on any platform. Charge 20-30% extra on Steam and call it done.
Charge 20-30% extra on Steam and call it done.
Steam doesn’t let you do that. This is literally what the lawsuit is about.
Sure. Not being able to sell literal Steam keys on other platforms for less on other platforms for less according to the terms is the same as being prevented from selling on other platforms for less at all, nevermind that Valve gets a 0% cut on Steam Key Sales made like so.
Also, there is no mention of said policy in either the OP article, nor the separate article about the lawsuit it links to.
Nobody said anything about Steam keys. They don’t let you sell games at lower prices, period.
Also, there is no mention of said policy in either the OP article, nor the separate article about the lawsuit it links to.
Are you being serious, right now? The source isn’t 2 clicks away so therefore it doesn’t exist? Lawsuits are literally public knowledge. You should inform yourself about a topic before you get into a conversation about it.
Here. Perhaps you can stop defending the billion dollar company now.
As far as I can tell, the lawsuit alleges that steam threatened pulling their (wolfire games) steam sales if they sold elsewhere for cheaper. Which would be bad if true. However, this does not appear to be anywhere in steam’s actual seller agreement. The only clause in that agreement is about steam keys being sold for cheaper, which is why the other poster was focusing on that.
That allegation seems to be that steam in practice is threatening things that are outside of the contract itself.
Edit: I read the emails from the lawsuit discovery (page 160–) and it seems like most of them are about steam keys and their policy on that, which seems more reasonable. But there are definitely a few emails that explicitly go beyond that
“You can definitely participate in sales off- steam, and we don’t want to discourage or prevent that. But in terms of promo visibility, regardless of Steam keys, we do try to think really hard about customers and put ourselves in their shoes. If the game is discounted down to $15 on Steam, and then it goes into a bundle or subscription with ten other games for $6 a few days or weeks later…, that really sucks for the people who bought at the way higher price! Why did you market me a $15 price if the game is actually selling for more like $1 somewhere else? For instance, we’d probably want to avoid running a 50% discount on a game if it was going to be a free giveaway on another store a week later, even if the giveaway had nothing to do with Steam Keys.”
Which seems pretty straightforward. Some of the other emails also imply that they might choose not to sell the game at all on steam if you do that.
ITT: People saying Steam is bad and a monopoly, no I won’t name reasons why. Do your research.
…no I won’t name the reasons why. Do your research
Oh. Oh no.
I will explain the reasons why, because it’s important to understand this without sounding like the antivax equivalent of a white knight.
First, forget the word monopoly. It’s a red herring. We are going to talk about trusts. A trust is any kind of organizational structure (one or more companies) that control or seek to control a market through centralized leadership. Trusts can lead to monopolies, but they are distinct and do not need to be (and rarely are) monopolies. The key defining feature of a trust is the use of market capture strategies that are unethical, anti-competitive, clandestine, underhanded, etc (“legal” or not).
Valve is neither a monopoly nor a trust, by definition. While they control a huge portion of the PC gaming market, they operate with transparency, do not sabotage competitors, share their technology freely with potential competitors, and do not push any anti-competitive policies (like exclusives, rules preventing offering products cheaper on other outlets, etc).
There is healthy competition in the PC game space, but Valve has held the lead by offering the best, most attractive platform for consumers. From social features and integrations, to regular discounts and sales, to a healthy and robust community review system, to automatically elevating great new content that might otherwise be missed, to enabling new platforms and technologies (VR, Steam Deck, Linux)… they provide things that customers and sellers love.
Compare their competition. GOG is great but their DRM free policies (which are great) limit their use by sellers. Publishers all have their own stores now, but those are unattractive for a wide variety of reasons - splitting your library, using even more proprietary software to access your content (new stores and launchers), and for all that inconvenience you don’t even get a discount when Valve isn’t taking a cut. Finally, there’s Epic. Market share is Epic’s game to lose, and they are losing on their own merits. Their product lacks basic consumer features that Steam users expect (social features, performant storefront, trustworthy reviews, etc) and they have repeatedly engaged in anti-competitive behavior through the use of exclusives. At one point, Stardock’s Impulse platform was well on its way to becoming a legitimate competitor, but then came the fateful decision to sell out to GameStop, who destroyed it.
Steam is no monopoly or trust. They are simply successful because they are well liked and they are well liked because they give customers and sellers what they want. Nobody else is even trying to compete with Steam right now. Epic could, but they aren’t, and only Tim Sweeny could tell you why.
