Open steam settings > Downloads, click the dropdown at the top. That whole dropdown menu? That’s what their cut pays for. Rack space, network capacity, and storage, to deliver ALL games on steam efficiently, across the planet. That ain’t cheap. And that’s only part of what it pays for.
I mean, sure. But I think you might be underestimating the infrastructure costs. They aren’t just using a few 10GB switches. They also aren’t just using a single data center to store and deliver games. Then, you have to consider all of the redundancies involved, the contractors, the data center contracts, etc. Even if they don’t have their own DCs, AWS or Azure at this level is $$$$$$.
Storing, transferring, and hosting at this scale is not cheap by any means. It makes GameStop’s tech infrastructure look like peanuts in comparison.
30% makes sense for a physical store with high overhead, inventory, staffing, and other expenses.
Valve could take a 5% cut and still make a ton more than a retail store for the same product.
Open steam settings > Downloads, click the dropdown at the top. That whole dropdown menu? That’s what their cut pays for. Rack space, network capacity, and storage, to deliver ALL games on steam efficiently, across the planet. That ain’t cheap. And that’s only part of what it pays for.
Relative to the money being spent on games it is incredibly cheap.
You know what it costs to run a retail store? And even in 2025 GameStop had 10 times as many retail store locations as Valve had employees.
And it’s not like retail has no tech infrastructure expenses.
Each Valve employee also makes about what 10 GameStop employees do, salaries at Valve are often mid to high 6 digits.
Which is not to say that GameStop is cheap to run, but hey, neither is Steam.
I mean, sure. But I think you might be underestimating the infrastructure costs. They aren’t just using a few 10GB switches. They also aren’t just using a single data center to store and deliver games. Then, you have to consider all of the redundancies involved, the contractors, the data center contracts, etc. Even if they don’t have their own DCs, AWS or Azure at this level is $$$$$$.
Storing, transferring, and hosting at this scale is not cheap by any means. It makes GameStop’s tech infrastructure look like peanuts in comparison.