[IGN] Report: Steam's 30% Cut Is Actually the Industry Standard - Page 6 - Overclock.net - An Overclocking Community

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[IGN] Report: Steam's 30% Cut Is Actually the Industry Standard

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post #51 of 90 (permalink) Old 10-09-2019, 09:32 AM
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Quote: Originally Posted by KyadCK View Post
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.
Quote: Originally Posted by Shawnb99 View Post
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.

https://www.polygon.com/2018/10/19/1...ricing-reviews

---“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).


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post #52 of 90 (permalink) Old 10-09-2019, 09:51 AM
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Quote: Originally Posted by Woundingchaney View Post
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.

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.
Again they do a bit more then just host the sales. Not valve, Steam.

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post #53 of 90 (permalink) Old 10-09-2019, 10:00 AM
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Quote: Originally Posted by Shawnb99 View Post
Again they do a bit more then just host the sales. Not valve, Steam.
What?

Im telling you their infrastructure costs are extremely minor in comparison to their platform and the revenue it generates. Even on a per title basis the infrastructure cost should be minimal.

Please tell me what infrastructure costs you think are so expensive or what cost you think is justifying the 30% fee.

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post #54 of 90 (permalink) Old 10-09-2019, 10:14 AM
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Quote: Originally Posted by ToTheSun! View Post
That's true, at least for Crysis. Are there any other games?
Origin has OOTP Baseball, just about the best baseball sim out there. Well really one of the only ones. They do have a decent amount of other games. Bomber Crew, Cities Skylines, They Are Billions.

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post #55 of 90 (permalink) Old 10-09-2019, 11:06 AM
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Quote: Originally Posted by PontiacGTX View Post
Not sure if you have opened the epic games store or your region has no discounts but.
Wow. Every single game in your screenshot is less than half the price of what I get.

I'd actually consider a few exclusives on the EGS if I also had access to that pricing...

Is that pricing exclusive to Venezuela? Because that might explain it.

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post #56 of 90 (permalink) Old 10-09-2019, 11:24 AM
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Quote: Originally Posted by Woundingchaney View Post
What?

Im telling you their infrastructure costs are extremely minor in comparison to their platform and the revenue it generates. Even on a per title basis the infrastructure cost should be minimal.

Please tell me what infrastructure costs you think are so expensive or what cost you think is justifying the 30% fee.





Why don't you explain the infrastructure costs since you claim that you know it doesn't cost much.
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post #57 of 90 (permalink) Old 10-09-2019, 11:37 AM
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Quote: Originally Posted by ToTheSun! View Post
Wow. Every single game in your screenshot is less than half the price of what I get.

I'd actually consider a few exclusives on the EGS if I also had access to that pricing...

Is that pricing exclusive to Venezuela? Because that might explain it.
clearly...

also, the actual new releases were only $15 less

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post #58 of 90 (permalink) Old 10-09-2019, 12:10 PM
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Not sure why there is a debate over infrastructure costs... Steam charges 30% because it can, not because it has to and clearly that 30% is worth it, because the market has yet to provide a decent alternative.

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post #59 of 90 (permalink) Old 10-09-2019, 12:22 PM - Thread Starter
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If 30% was needed to setup some servers to host steam functions, we wouldn't see so many other game makers building their own online stores to get around it. Clearly there is a lot of profit to be made from selling digital content. Remember this is all digital content, there no manufacturing costs or anything. The fact that a digital store would charge the same cut as a physical store is absurd on its own.

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post #60 of 90 (permalink) Old 10-09-2019, 01:03 PM
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i'm curious how folks think they have their data centers setup, etc.

do they 99% rely on AWS type services? or do they have their own datacenters with their own racks, with their own techs, etc etc?

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