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How do game companies on steam get payed? - Page 2

post #11 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.
Didn't need proof to really prove that other guy wrong. Stating steam gets 30% off the sale and retail stores get 60% is really dumb.
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Silence
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post #12 of 13
Quote:
Originally Posted by M0E View Post
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.
This, back when I worked my first job with Best Buy, I got 10-6$ off of games.
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post #13 of 13
I don't think anyone can give a clear layout of how Steam's revenue structure is and I'm willing to bet, each developer has different contract agreements. For all we know, it could be based off of quota. Such as Steam agrees to carry/move 100 keys/copies in a week before taking a certain percentage off the top. Maybe they purchase bulk licenses at bulk prices from the git go, with the agreement of discounted offers/promos at said time of purchasing titles for distribution.

What ever it is, sure enough it'll all be speculation. So I personally think it's not comparable to brick and mortar shops. Despite it being digital content vs physical disk is a bit irrelevant in regards to discounts and such and how Steam is able to lower prices. We pay for the right to play the game no matter the format in which we receive it.
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