Monday , May 17 2021

Steam's new Steam revenue deal gives more money to game developers

The parent company Steam announced a new revenue split for its online video game market late on Friday, with a change in the distribution agreement that gave developers more money by increasing the number of unit sales. Normally, Valve takes up about 30 percent of sales of all Steam games, with a few exceptions for smaller programmers in the Steam Direct program. That will remain the case for the first $ 10 million in sales the player or publisher earns. For all sales between $ 10 and $ 50 million, the breakdown is 25 percent. And for every sale after the initial $ 50 million, Steam will take only a 20 percent reduction.

"The value of a large network like Steam has many benefits that contribute and share all participants. Finding the right balance to reflect those contributions is a difficult but important factor in the well-functioning network," the company wrote in a statement on the Steam site Community. "It has always been obvious that successful games and their large audience have a material impact on those network effects in order to ensure that Steam recognizes and continues to be an attractive platform for these games is an important goal for all participants in the network." allowing developers to be more transparent about selling games by updating the confidentiality clause of her contract.

This updated agreement marks the most significant change in Steam's financial conditions in the store's 15-year history and appears to be clearly designed to attract more developers to stick around, rather than self-destructive games or by going with a growing number of distributors.

Steam has become the dominant platform for computer games over the last decade, primarily by easing restrictions on getting its platform and initially becoming the primary destination for PC gamers to collect and launch titles made by one piece of software. In 2017, Vlwe took only $ 4.3 billion in Steam revenues, not even counting microtransactions and content that could be taken, according to Steam Spy analyst.

But over the years, developers and big game publishers have created their own distribution channels to directly control aspects of their businesses, such as copyright restrictions, billing, and game updates, and to avoid revenue cuts what Steam would otherwise have done. Blizzard, EA, Epic and Ubisoft are now working with their own launchers, and Valve saw that its impact began to decline.

Additionally, as it turned out that Valve got stuck in controversy over her less cold attitude about putting violent, hateful, and other suspicious content on her platform, many smaller, more regulated distributors of the game, such as Itchio, became popular alternatives , especially for the big name indie players. Also, the discord discussion platform for Discord games, perhaps a social infrastructure company that will compete with Steam, has recently launched its own Steam competitor, posing yet another existential threat to dominate the Valve market.

All of this contributes to the precarious situation for Steam. Although it remains the largest PC gaming market, with more than 150 million registered users, the company clearly admits that it can not rest on its laurels. The venture began leveraging some social features from Discord to maintain the inbuilt social advantage of slipping, and plans to open its store in China, the world's largest gaming market, for some time soon. But the change in Steam revenue divided into more generous to developers is, of course, a very effective strategy to keep developers happy and stay around.

Source link