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.
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?
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:
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.
No. That’s not true. You’re spreading misinformation. Read the fucking lawsuit.
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.
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
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.
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.
So can developers just ‘create’ steam keys out of thin air that can be used to activate their game on steam? Does Valve get paid when the keys are created or activated? Or not at all?
Seems fair maybe if it’s using all of Steams infrastructure, considering developers can distribute the game themselves without steam keys.
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:
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.
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.
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.
Sorry that my mean words hurt you more than Valve abusing you.
Okay so if Steam takes 30% and Itch takes 5% then the same game could be sold for approx $64 on Steam and $47 on Itch and the developer would take the same-ish amount home? But if they priced them the same they would make more money from Itch 🤑
And if you sell Steam keys separately then the user would still go to Steam to download and Steam would make sure that it goes to one person’s library and a bunch of other jazz.
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