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How do game companies on steam get payed?

post #1 of 13
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When people buy games on steam, does every single digital copy sold count as a sale and revenue goes to that developer... or does steam pay the company upfront to host the sales of the game?
Edited by FellsPoint - 2/22/11 at 3:39pm
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wut
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post #2 of 13
Steam takes 30% of the overall price, the dev takes 70%. Atleast, I think it's that.

It's either 30/70 or 40/60.
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post #3 of 13
Quote:
Originally Posted by OverTheBelow View Post
Steam takes 30% of the overall price, the dev takes 70%. Atleast, I think it's that.

It's either 30/70 or 40/60.
Probably something like that
post #4 of 13
And considering how cheap most games are during sale.. companies win almost nothing haha free games ftw
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post #5 of 13
They actually make more money in sales then one might think. Someone posted a video conference some high school students had with gabe newell about steam and one asked about sales and he said that sales help increase their money and after the price is back to normal they see more people are buying it most likely due to word of mouth.
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post #6 of 13
steam takes %30

in retail (like gamestop) the store takes more than double what steam gets
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post #7 of 13
Quote:
Originally Posted by Vaus View Post
steam takes %30

in retail (like gamestop) the store takes more than double what steam gets
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post #8 of 13
with money
post #9 of 13
Quote:
Originally Posted by [nK]Sharp View Post
Hard to get proof unless you work retail and are in a position to see cost price.
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post #10 of 13
Quote:
Originally Posted by SniperXX View Post
Hard to get proof unless you work retail and are in a position to see cost price.
I was...he is incorrect about retail. I worked for CompUSA corporate in merchandising before we closed. Markup is extremely low. Your profits come from companies like Microsoft giving you X number of product A (or a discount on them) if you buy X number of product B. Sometimes they offer you manufacture credit if you buy X number of a product.

Cost of a Xbox game for example was $54.99 for a $59.99 retail game. PC games were similar priced.

Hardware retail fluctuates as well. An Ipod for example was $249.99 and retail was $299.99.
Laptop for $899.99 retail was $879.99 cost.


EDIT:
At one point the Xbox had a $5 mark up from cost to retail. Brick and morter stores make their money off accessories. Lets do a run down of them.

Xbox ($249.99 cost) $299.99 retail
Games ($54.99 cost) $59.99 retail
Here is the kicker...
HDMI cable ($0.88 cost) $39.99 retail (HAHA!)
Cat 5/6 cable ($0.03 cost) $1.99 retail

I can go on...My fav...
I bought a set of Sure e4c when they first launched. They were $299 retail. Cost...$53
I bought a set of Sennheizer (I cant spell for crap without spell check and its not installed) headphones that retail for $199 for $28

The accesories are were they make their money.


Steam can get away with doing the deals they do with the manufactures because there is no physical game, its just a digital copy. Thus, the developers allow steam to sell at a sale/lower price margin because its at no cost to them.
Edited by M0E - 2/22/11 at 8:34pm
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