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this post was submitted on 25 Sep 2023
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I think you got the whole thing mixed up. Sure Valve takes a huge cut, but if game does poorly Valve earns less as well. So there's an incentive from both parties to make sure game succeeds. But in the end Valve makes sure you as a consumer get your money's worth, hence why they even added no questions asked refund policy. Policy which has resulted in more purchases than before, because risk of not liking the game is non-existent now.
Epic on the other hand is forcing users to buy into their ecosystem by way of exclusives. Developers use this to make sure project succeeds even if it's not good. That is to say they get the money regardless. But this model is not sustainable as Epic has to earn money at some point so number of exclusives will be lower and lower. At the same time they are encouraging developers to not try as hard to polish the game since they get the money regardless.
Fundamentally approaches are completely different and Steam's approach can't fail because they cater to customer while Epic is just trying to force people away while offering subpar service. And whoever holds the money holds the power.
It's a really fascinating market dynamic. Steam is good to consumers, generally speaking, and offers features to that end. Family sharing is the wildest thing imaginable, since it's formally letting customers share one purchase instead of each making one for two purchases. Their refund policy too is really, really nice.
Valve has effectively chosen to be more enticing to the end user than to the seller. They've gathered up so many buyers that it's foolish for sellers to not set up a shop there. A 30% cut of revenue is hefty, but like you said, that sets up a dynamic where both want the game to succeed. I suspect paying a monthly fee to remain listed on steam would end up worse for everyone.
Gaben is one hell of a mastermind.
Indeed. And it's a system where everyone benefits. As opposed to currently popular philosophy of "milk it while you can" from big publishers.
It's a healthy dynamic which could be better, but it being healthy for everyone is what keeps it afloat
Subpar is being generous.