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[Fabieter]

Wasn't it leaked in the Microsoft Court documents that Microsoft calculated that for Steam to break even, they need a 16% cut, so that would leave a 14% profit.

It makes me laugh when people then say that Valve should lower their cut to 5% or lower... Cause at that rate Steam would disappear in a year or 2. Lol



Yeah, it was known that Sony was also on 80/20 cut too and I believe they still are till the end of this year.

Which is a pretty good profit margin. They also have their own games which are mostly gaas which they barely Touch and still make billions every year. The profit for such a small company is insane.

 

[Sentenza]

Wasn't it leaked in the Microsoft Court documents that Microsoft calculated that for Steam to break even, they need a 16% cut, so that would leave a 14% profit.

Their cut becomes 25% above a million dollar in revenues and 20% above 50 millions, so it's less than 14% for anything even remotely successful.

 

[Danny Dudekisser]

Probably nowhere.

Also, "it's now a class action" but at the time the article was published it was a class action including just two people.

That doesn't sound right - you can't certify a class with two people.

So yeah, you're probably right - going nowhere.

 

[Z O N E]

Which is a pretty good profit margin. They also have their own games which are mostly gaas which they barely Touch and still make billions every year. The profit for such a small company is insane.

Yeah, 14% is perfectly fine considering the cut gets smaller the more the game sells, so their cut can go down to 9% or even 4% depending on the game sales.

Their cut becomes 25% above a million dollar in revenues and 20% above 50 millions, so it's less than 14% for anything even remotely successful.

Exactly.

25% = Steams profit becomes 9%
20% = Steams profit becomes 4%

EGS is proving why a lower cut is not financially feasible. It has been 6 years and Epic Game Store STILL hasn't turned a profit.

 

[Melon Husk]

Yeah, 14% is perfectly fine considering the cut gets smaller the more the game sells, so their cut can go down to 9% or even 4% depending on the game sales.



Exactly.

25% = Steams profit becomes 9%
20% = Steams profit becomes 4%

EGS is proving why a lower cut is not financially feasible. It has been 6 years and Epic Game Store STILL hasn't turned a profit.

Valve reinvests at least some of the profits into improving the platform with new features. EGS makes no money and has invested $0 to improve the store.

 

[Fabieter]

Valve reinvests at least some of the profits into improving the platform with new features. EGS makes no money and has invested $0 to improve the store.

They definitely do to some extent but they are really small for what they do. But it's easier to make a good store than big games these days so it definitely makes sense because everything we get from them is gaas games.

 

[Bumblebeetuna]

So they have a customer class action lawsuit and a developer class action lawsuit against them now?

 

[Brakum]

They'll probably lose the ability to force price parity with other stores. At least the nonsense about their backend system being some kind of entitlement that should be available to games sold outside the store seems to have been tossed aside.

That clause only applies to steam keys which makes PERFECT sense. If this goes through they'll just stop doing the keys thing and the industry will be worse for it and 99% of key selling websites will be gone over night.

 

[Dirk Benedict]

Yeah, 14% is perfectly fine considering the cut gets smaller the more the game sells, so their cut can go down to 9% or even 4% depending on the game sales.



Exactly.

25% = Steams profit becomes 9%
20% = Steams profit becomes 4%

EGS is proving why a lower cut is not financially feasible. It has been 6 years and Epic Game Store STILL hasn't turned a profit.

When giving games away PS+ style, but without the sub is one of your main draws... they should have incentivized getting a free game through buying one. They threw their Fortnite warchest at Valve for market share.

 

[Sorcerer]

So, what is going to happen on the consumer side, is everybody going to find 5 dollars in their Steam Wallet one day? And how are people who don't use Steam (but seem somehow entitled to something if I am reading this right) getting compensated.

About Valves 30% cut. Do developers get access to cloud saves and other features through Steam in exchange for the cut? Would they have to implement all those features themselves, or it does not work that way? I would guess not because there does not seem to be parity across all games with say cloud saves and achievements.

 

[SportsFan581]

That clause only applies to steam keys which makes PERFECT sense. If this goes through they'll just stop doing the keys thing and the industry will be worse for it and 99% of key selling websites will be gone over night.

That would suck for sure. I probably have more redeemed keys in my library than I do purchased games.

 

[chakadave]

That clause only applies to steam keys which makes PERFECT sense. If this goes through they'll just stop doing the keys thing and the industry will be worse for it and 99% of key selling websites will be gone over night.

Yep and that is bad for eveeryone. If you hace to sell game keys that can't be used on STeam what is the point?

 

[ozz ex machina]

As a consumer - steam has always treated me well. I couldn't give a fuck what cut the developers get. Steam brought in refunds first, has competitive pricing and allows me to buy steam keys elsewhere and utilise the steam ecosystem - which is how i get most of my games.

 

[mayham2199]

I don’t even know what they could do to resolve this even if Steam lost.