Originally Posted by KyadCK
Today I learned that some random person on the internet is aware of all projects and services a company provides as well as employee pay and benefits and can confidently state the minimum value said company needs not to be profitable, but to break even. Even though they ignored everything the company does in favor of only the one provided service they are familiar with.
If it were as easy as you make it out to be, EGS would provide all the benefits Steam does as well as run all the projects they do, all on their smaller cut, and be just fine. Except they don't.
Originally Posted by Shawnb99
Steam is a bit more then just a sales platform.
Could you please show me how running a hosting platform is going to require anywhere near a 30% revenue cut? Hell, please show me where it would require a 20% revenue cut.
Are you speaking from a position of experience? Do you have any knowledge of the industry or infrastructure costs?
Right now I see baseless statements.
We are speaking directly to the legitimacy of a 30% cut to host an online sale; not if you like Steam feature, not what it costs Valve to run as a company, etc. It doesnt matter how many ventures Valve has nor does it matter what it costs to run Valve as a company. The point being that it doesnt cost anywhere near 30% of revenue to host a sale or maintain a sales platform. The 30% revenue cut is what they are charging publishers and developers to host the sale of their title, those publishers and developers most likely care extremely little if that is required to pay for Valves other ventures. That is a grossly exaggerated fee.
---“I don’t think any digital store that takes 30 percent to host a download and take a payment can justify that split, but it’s a wider problem than just Valve/Steam,” Paul Turbett told me. “Unfortunately, it’s an industry standard now, and unlikely to change — especially given that most platforms have a single dominant store or a monopoly, and therefore no incentive to give developers a better deal.”---
In regards to their labor practices:
---“The people at Valve I have dealt with [...] I have never had any problems,” one developer told me. “I feel like they work their ass off. In fact I feel like they work their ass off too much. I feel like they have about 4,000 jobs each. It’s shocking. Valve management has this corporate culture where they refuse to hire anybody. They want an automated or algorithmic solution for everything. I think the employees are too overworked and they’re not permitted to do the things they would like to do.”---
There is absolutely no way in hell the cost of hosting a marketplace is anywhere near 30% revenue or even 20%. Put it this way, publisher can easily build their own sales platform and maintain it all the while it being cheaper than a 30% cut (which is why we have so many storefronts now).