| ▲ | bob1029 4 days ago |
| Valve gets a lot of heat for slowing down on first party gaming content, but I think Steam has been a net positive for the gaming community. There are certainly some cases where the accessibility has created "noise" and other trouble, but overall I think this is a good thing. Their 30% cut is absolutely justified once you start looking into everything they do for you as a developer and the market that you have access to. It is a lot easier to pay that kind of fee when you don't feel like your technology partners actively hate the fact that you merely exist. Steam is still like what Netflix used to be. You have pretty much everything you care about in one place. Even big monster AAA developers like EA have given up and put their content on the platform. If I had to pick between having HL3 and a coherent gaming ecosystem, I'd pick the latter. |
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| ▲ | AddLightness 4 days ago | parent | next [-] |
| I'm very scared about the future though. What happens when Gabe is gone? The entire PC Gaming industry is essentially locked in to a single platform. If Steam decided to charge $10/mo people have so much invested into their libraries they would likely do it. What about $20 or $30 per month? I'm not sure why Steam always seems to be exempt from the "perils of digital ownership" arguments |
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| ▲ | Hendrikto 4 days ago | parent | next [-] | | > I'm not sure why Steam always seems to be exempt from the "perils of digital ownership" arguments Because they have been consistently good citizens for more than 2 decades. They built a reputation. Something other companies are eager to piss away at the first opportunity to sell out or squeeze their customers. It’s not surprising that Valve is successful and trusted with this approach. What is surprising is that it is apparently so incredibly hard for other companies to understand this very simple fact. 1. Build a good product. 2. Consistently act in good faith. 3. Profit. | | |
| ▲ | sarchertech 4 days ago | parent | next [-] | | Which is a great way to run a business that you care about owning for a long time. But as a consumer you have to think about what happens when leadership changes—PE buys them and starts reputation mining. It takes a while to burn through the good will and for a few years you can make a lot more money off of that than you can continuing thing as usual. | | |
| ▲ | Aeolun 4 days ago | parent | next [-] | | You think Gabe will sell to PE? You need someone willing to sell to be able to buy something. I’m betting that won’t happen, and that the next BDFL is not going to run the thing into the ground fast enough for it to matter to me. | | |
| ▲ | sarchertech 4 days ago | parent | next [-] | | No, but his heirs might. | |
| ▲ | gjsman-1000 4 days ago | parent | prev [-] | | Dude, Gabe could get hit by a bus tomorrow, and all it takes is for 0.2% of Steam shares to be given to a secondary person, for any reason, due to a legal order (as he owns only 50.1%) to cause the takeover. Valve is also facing a class action lawsuit for anticompetitive practices. If they lose, even though they will almost certainly survive, watch the tables flip upside down fast. | | |
| ▲ | ChoGGi 4 days ago | parent | next [-] | | I thought valve was a private company with no VC money? How do you know share ratios? I am genuinely asking, as I am curious. | |
| ▲ | bigyabai 4 days ago | parent | prev [-] | | That would be very distressing, but the important things (eg. Proton, Gamescope, OpenXR) they built would live on in their legacy. Plus, the PC games industry can survive just fine without Valve - but Valve can't survive without the support of PC gamers. Anyone succeeding Gabe would have to accept that, or squander what little value their shares possess. Products like the Steam Deck or Steam Controller don't need any Valve software to play games. Valve knows a post-Steam world will exist one day, and they're fine with that. From a consumer standpoint, I respect that. |
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| ▲ | 4 days ago | parent | prev [-] | | [deleted] |
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| ▲ | xandrius 4 days ago | parent | prev | next [-] | | Still a for-profit company, wouldn't bet on this, even though I'd love it to be like this (that companies who have been doing good will continue to do good instead of increasing their profits). Been burnt too many times. | |
| ▲ | jerf 4 days ago | parent | prev | next [-] | | The dominant business school philosophy in the West is that 1. any reputation you have with your customers is a monetary asset and 2. therefore you should sell it for profit because it's greater than the long term expected monetary value according to a simple time-value of money calculation, especially because of the lag before your customers figure out you've sold them out. #1 on its own isn't so bad, you should indeed treat reputation as a valuable asset, but the way their style of logic invariably jumps to "and therefore you should sell, sell, sell it!" is the source of the problems we see. Especially because they're likely to jump jobs before the consequences occur. We really ought to have a culture of looking askance at executives and decision makers who never spend more than 2 years at a job, rather than celebrating them. If they've never had to live with the effects of their decisions they're really just a fresh-out-of-college person with 10 instances of the same two years of experience. | |
| ▲ | pjmlp 4 days ago | parent | prev | next [-] | | I bet those are the same folks that believed on the "Do no evil" marketing, or Microsoft <3 FOSS. | |
| ▲ | Thaxll 4 days ago | parent | prev [-] | | 30% cut and the shit they do with CS ( fomo, gambling ect .. ) they're not a good citizen. |
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| ▲ | squigz 4 days ago | parent | prev | next [-] | | > I'm not sure why Steam always seems to be exempt from the "perils of digital ownership" arguments They're not, really, but they've given us little reason to distrust them. I'm also fairly confident there would be some fun legal stuff going on if Steam tried that. People have thousands - tens of thousands - of dollars worth of stuff on Steam. That isn't really the same as, say, having to watch ads even after paying for a subscription. | | |
| ▲ | vintermann 4 days ago | parent [-] | | Also, let's say we decided to not trust Steam because all corporations cash in on their goodwill eventually. What would be the alternative? |
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| ▲ | markus_zhang 4 days ago | parent | prev | next [-] | | I’d just quietly turn to GoG and download all of my games just in case. But anyway I’m no longer that interested in games now. Reality is more challenging and fun. | |
| ▲ | xandrius 4 days ago | parent | prev | next [-] | | At that point I'd feel entitled to keep the games I bought by pirating them. | | |
| ▲ | kaashif 3 days ago | parent | next [-] | | It doesn't matter how entitled we think we are, pirating won't give us access to e.g. online play or Steam Workshop, which are critical to many games. | | |
| ▲ | xandrius 3 days ago | parent [-] | | Many but far from most. And part of the services provided by Steam is the multiplayer experience, so you definitely cannot expect to keep that without paying Steam, unless the developers want that too. |
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| ▲ | martin-t 4 days ago | parent | prev [-] | | This is the right approach. I only buy games if the money goes to the original creators, not some parasitic company who bought the "IP". |
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| ▲ | newsclues 4 days ago | parent | prev | next [-] | | Microsoft/xBox are waiting to buy Valve. | | |
| ▲ | pjmlp 4 days ago | parent [-] | | I wouldn't be surprised, especially after eventually there is a management change. Most folks aren't keeping tabs on how many studios Microsoft nowadays owns as publisher, even moreso after the ABK deal. | | |
| ▲ | jayd16 4 days ago | parent [-] | | Easier to track the ones they don't own and that's almost not a joke. |
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| ▲ | raron 3 days ago | parent | prev | next [-] | | People would go back to piracy. Exactly as that famous quote says, currently Steam is the better product, but if Valve would go rogue, that could change easily. > If Steam decided to charge $10/mo If you think about games already purchased I suspect that would be illegal in many parts of the world. | | |
| ▲ | paulryanrogers 3 days ago | parent [-] | | Considering how quickly new games become unplayable on PC, it amazes that current circumstances pass as legal. StopKillingGames.com |
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| ▲ | jader201 4 days ago | parent | prev | next [-] | | I’ve already received 95% of the value from the game library I have on Steam. Worst case, if I lose access to all of them, whether by choice or by force (they go under), there are other options of obtaining (most of) the same games, and that’s even if I’m interested in playing them again. Most of the games I really care about, I probably already have on other platforms anyway, in addition to or instead of Steam. | |
| ▲ | vikingerik 4 days ago | parent | prev | next [-] | | It's not exempt. I don't trust Steam long term and so don't spend any significant money on it. I only ever buy cheap games for like $8 or less, where I know I'll get that much worth of gameplay in a short time frame and it won't bother me if the platform ever later enshittifies. Gabe says that the platform will fail-open if ever necessary, that it would revert to offline DRMless functionality. I believe that he has that intention, but the realities of operating from receivership or assimilation by Microsoft would likely be very different. | |
| ▲ | brainzap 4 days ago | parent | prev [-] | | the same as always happens :) |
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| ▲ | Panzer04 4 days ago | parent | prev | next [-] |
| The other things is steam doesn't constrain competition (afaik? Open to being wrong but this is how I'd understood it). Devs can sell their own games, games can be on other platforms, etc. Despite that gamers think it's worth the convenience and utilities steam provides to keep shopping there. Steam isn't dominant because it's strangling competition like the app store and similar. People can trivially download alternatives, but they choose steam anyway. |
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| ▲ | Cyph0n 4 days ago | parent | next [-] | | Yet for some reason, people still use Steam as a “gotcha” to justify why Apple’s terms are fair. But as you’ve hinted at, Steam is very different from the iOS App Store because it is competing organically with other app stores on Windows. Steam does not control Windows or the hardware, so it cannot “force” itself to be the only option to download games on Windows. And even when it does have full control over the platform and HW (Steam Deck), it’s just a light wrapper around a standard Linux distro (Arch). | |
| ▲ | ThatPlayer 4 days ago | parent | prev [-] | | Steam is currently being sued by Wolfire for being anti-competitive by allegedly having a "platform most-favored-nations" clause. Preventing games on other platforms from being priced lower. According to the developer: > [Valve] would remove Overgrowth from Steam if I allowed it to be sold at a lower price anywhere, even from my own website without Steam keys and without Steam’s DRM. > I believe that other developers who charged lower prices on other stores have been contacted by Valve, telling them that their games will be removed from Steam if they did not raise their prices on competing stores. https://www.wolfire.com/blog/2021/05/Regarding-the-Valve-cla... | | |
| ▲ | Hikikomori 4 days ago | parent [-] | | Its not true. You're allowed to sell for lower elsewhere, but you can't sell steam keys for a lower price than steam store. So if you create a version of your game that works without steam you can sell that for a lower price. | | |
| ▲ | FatalLogic 4 days ago | parent [-] | | In the class action case[0], which was allowed to go forward by the court last year, it is claimed that Valve told someone: "This includes communications from Valve that “‘the price on Steam [must be] competitive with where it’s being sold elsewhere’” and that Valve “‘wouldn’t be OK with selling games on Steam if they are available at better prices on other stores, even if they didn’t use Steam keys.’” Dkt. No. 343 ¶ 158, 160 (quoting emails produced at VALVE_ANT_0598921, 0605087). " (This is a new case, not the 2021 suit, which was rejected by the court, then amended and refiled, later with an additional plaintiff added) [0]https://storage.courtlistener.com/recap/gov.uscourts.wawd.29... |
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| ▲ | SXX 4 days ago | parent | prev | next [-] |
| As consumer I very much agree with you, but as game developer 30% is abysmal amount of money. Imagine you're indie developer or owner of a small 3-10 people studio that finally released reasonably successful game: 1 - Let's say you invested $100,000 of your own money for vertical slice and managed to find a publisher to give you $200,000 to complete the game.
2 - Ignore that you had some failed games before, but this time you let's say sold 100,000 copies for $10 each average. 100k sold is a big success really.
But here is the math: 1 - Valve got $1,000,000 as gross revenue for 100,000 sales.
2 - Usually 16% is VAT and immenient refunds. So now $840,000 left.
3 - Now Valve took their 30% cut. $588,000 left.
4 - Now your publisher took $200,000 to recoup invested money. $388,000 left.
5 - Now publisher split remaining $388,000 by honest 50/50.
Now your company sold 100,000 copies of a game, but only get $194,000 gross income as royalties. And if you will make any profit you'll likely pay at least 20% corporate or divident taxes so yeah at best your profit gonna be $155,000.So you did all the work, somehow managed to fund it, worked on game for a year and got $155,000 while Valve made $252,000 for payment processing and CDN. Steam do not provide marketing - it only boost already successful products. PS: This is best case scenario. Usually your publisher will also recoup whatever expenses they had on their end for marketing and whatever. |
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| ▲ | TheFreim 4 days ago | parent | next [-] | | I would note that they do provide quite an immense amount of value to developers. Achievements, transferable inventory system, multi-player (steam networking), among other things. The 30% cut still feels high, especially since most games can't or won't take advantage of every single service Steam provides, but I do think they provide quite a bit of developer value that needs to be factored in. | | |
| ▲ | tapoxi 4 days ago | parent | next [-] | | The multiplayer isn't actually used that much, since it doesn't support console players/cross-play which is expected these days. Many games will use Azure PlayFab or Epic Online Services. EOS is free and doesn't require the game be sold on the Epic Store or the Epic client. | |
| ▲ | account42 3 days ago | parent | prev | next [-] | | Those are all there for platform lock in, not for the benefit of the game developer. | |
| ▲ | SXX 4 days ago | parent | prev [-] | | You really missing my point here. Problem with platforms is that platform-holders are taking bigger cut from a small struggling companies than they take from likes of EA or Ubisoft. If you look at majority of small and mid-size game development studios Valve is basically taking half of their income unless your game earns more than $10,000,000. It's totally okay to like Valve or Steam as gamer. As fellow gamers I totally agree with you. Just next time when you wonder why you favorite studio went bankrupt or why you niche genre game never got a sequel this is why: because some monopoly took 50% of their profit. | | |
| ▲ | Ekaros 4 days ago | parent [-] | | On other hand how much developer time would have been spend on building own distribution, billing and related customer support. Time spend on doing it yourself would not be free either. 30% for this is high, but then there is also the discoverability. Which I think does beat google by long way. So they probably would not have sold as many copies without popular platform. | | |
| ▲ | SXX 4 days ago | parent | next [-] | | Nothing of what Steam provides costs 30%. Discoverability and free marketing only provided to games that are already successful and have hundreds of wishlists. That's only possible to achieve if you game already have it's own following and community. 12+ years ago if you released on Steam it was a big deal and platform provided traffic to everyone, but today it's flooded with games so basically you're on your own. The only thing that allow Valve to charge this much is network effect. They are not vendor-locked platform like App Store, but they do have nearly monopoly on PC. | | |
| ▲ | SXX 3 days ago | parent [-] | | Little correction: obviously not hundreds of wishlists, but hundreds of thousands. You need at least 100,000+ to even be considered to have a successful Steam page. |
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| ▲ | TheFreim 4 days ago | parent | prev [-] | | This is exactly what I was trying to point out. Steam's developer services can save a massive amount of time for developers, time which is especially valuable to indie studios. I still feel that the 30% is steep, I'd prefer if Steam took a cut based on how many of their underlying services you used, but its wrongheaded to deny that Steam provides many useful features for developers that can save a lot of time. https://partner.steamgames.com/doc/features | | |
| ▲ | Ekaros 4 days ago | parent [-] | | I think such model can lead to messy scenarios. Say you start without cloud saves and sell million copies. Then you add cloud saves. Now should your commission increase on past sales meaning that for while you make nothing? Or should it only apply moving forward and on future copies sold? And I am absolutely certain that some developers would exploit this in someway. |
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| ▲ | gdbsjjdn 4 days ago | parent | prev | next [-] | | Steam isn't the right place to sell a game that does 1M in total lifetime sales. Because like you said, it won't hit any recommendations and they'll take a huge cut. This is like complaining that AMC won't screen your student film. You're playing in a very niche space and the key is to keep costs under control so you can actually make money. | | |
| ▲ | SXX 4 days ago | parent [-] | | If your game is not on Steam (or big consoles) it doesn't exist. Platforms like Itch are only useful for part-time solo developers who trying to earn their $100 or $10 for ramen. Can be good marketing for solo developers too, but you only make money when release on "real" platform. Gamedev is a hit industry. Even of released games 90% never make back the investments. Then 1% hits make 90% of money. And situation is as bad for $3,000,000 game studio as it's for one like mine that makes $300,000 games. |
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| ▲ | ploxiln 4 days ago | parent | prev [-] | | This math is missing a step: $200k went to your publisher who already gave you the $200k, so really you got about $394k total (before your taxes). And it's worth remembering that your publisher got $194k ... I'm not sure if this publishing arrangement makes sense for the publisher ($200k risk for not much more reward?) or for you (30% of your net income from the game, after valve's 30%) (I'm not in the industry so honestly I just don't know) | | |
| ▲ | SXX 4 days ago | parent [-] | | This step is certainly not missing. And yeah I somewhat simplified the agreement not to go into details. Usually publishers that invests money take 80-90% or even 100% before full recouperation of investments. This usually includes not only provided budget, but also whatever publisher spent on porting, QA, localization and LQA. Then after recouperation is complete all income is split between 50/50 and 40/60 for either side. And yeah in gamedev ROI like x2.5 is a good deal for publishers even if 90% of games never recover development costs. Everyone just hopes to make the next hit and make a bank. PS: This is math for indie and AA games with budgets under $5,000,000. |
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| ▲ | YesBox 4 days ago | parent | prev | next [-] |
| > Their 30% cut is absolutely justified That is debatable. For one thing, Steam is partly (mostly?) built off the backs of games marketing their games and providing a Steam link (marketing costs money for the devs). Steam kick started this chicken/egg problem by creating their own great games first. Second, Steam does not provide your game any marketing (algorithmic visibility) unless it's already successfully marketed outside of Steam (marketing is not free), and again later once it hits a certain number of sales. Third, per Tim Sweeney, games during the retail era had a bigger margin for the the studios than they do today [1] [1] https://drive.google.com/file/d/19_NC1ZskeN47LHaYJziotbA0sqL... edit: So I do feel a little upset that Steam gets free marketing for every game put on the site (important note you can (and should in most cases) place your game up on the site long before its ready to purchase, and steam will advertise other games on your page), doesnt provide any marketing in return (via the discovery queue) unless you bring in tens or hundreds of thousands of clicks, and then turns around and skims 30% of all my work which they are greatly benefiting from (e.g. what if the customer goes to my page, wish lists my game, then purchased a different game in the mean time? At least e.g. amazon has referral links) |
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| ▲ | vintermann 4 days ago | parent | next [-] | | > Second, Steam does not provide your game any marketing (algorithmic visibility) unless it's already successfully marketed outside of Steam (marketing is not free), and again later once it hits a certain number of sales. Oh, it's safe to say Steam acts as a big multiplier on whatever attention you manage to scrounge up. Not that this is ideal. | | |
| ▲ | YesBox 4 days ago | parent [-] | | Unfortunately this isn’t true. Elaborating my point above, they only multiply the attention if the tens-hundreds of thousands of storefront views happen in a day or two. If you get a ten million views evenly spread out through the year, they won’t promote. (Speaking for games not for purchase yet) I’m speaking from experience and it’s explained somewhere on howtomarketagame.com |
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| ▲ | keyringlight 4 days ago | parent | prev [-] | | I think there's a lot of weirdness if you try to answer "what is the PC gaming platform?" and how Valve or anyone else fits into it, and because it's PC a lot of answers can be true simultaneously, and many different users want/expect different things. Is it processor architecture? Is it the OS? Is it the store and whatever facilities they provide? Is it the mode of physical interaction with the device (desk, couch+TV, etc)? Is it being able to assemble any random collection of hardware and expecting it to work? Does that discount set builds? Is it mandatory that the user is free to screw around with the software any way they please or can you lock stuff down? At least on the commerce side, it's been the case since steam was opened up to third parties that they were the gatekeeper for success unless you were already huge (and now very few companies want to go it alone). Going back to Introversion's Darwinia they were just scraping by until they got on steam, developers have long been complaining that the varied methods Valve has used to get on the store (manual review, greenlight, etc) showed the vast majority of gamers only purchase through it or that you'll get a large wave of new business when you release on it. Now it seems like a 'tragedy of the commons' situation unless you've got your own marketing or it's a hobby project. It seems like you've now got to do mental gymnastics to say Valve doesn't own the PC gaming platform | | |
| ▲ | pjmlp 4 days ago | parent [-] | | PC gaming is what has been since the MS-DOS days and lame beeps, versus the Amiga. I always find interesting the mention of "rise of PC gaming". Those of my generation have been playing PC games, and 8 bit home computers before that, since the 1980's. Game consoles were almost inexistent in most European households for us. The exception being the Game and Watch from Nintendo series, like Manhole. | | |
| ▲ | keyringlight 4 days ago | parent [-] | | Trying to define "Personal Computer" is another rabbit-hole, it's such a broad concept. I'd argue someone could be right if they called an iPhone a PC as for many that is their computing device, at the same time as someone else's PC being a monstrous workstation that you'd need to load onto a trolley to move. | | |
| ▲ | pjmlp 4 days ago | parent [-] | | On this one, I would say it was quite clear for my generation, a PC ran either an IBM, Digital Research or Microsoft OS and that was it. That is why those old Mac vs PC ads from Apple were the way they were, back when Apple was relaunching themselves. Everything else is trying to give new meaning to something that during 1980-2000's was quite clear what it stand for. |
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| ▲ | bsjaux628 4 days ago | parent | prev | next [-] |
| Do we also point out being the first to implement DRM and erode digital ownership, being the first to tie game installation to a platform client, creating micro transactions or being fine with child gambling (CS skins) in the net negatives, or are we not allowed to criticize Lord Gabel today? |
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| ▲ | terribleperson 4 days ago | parent [-] | | The gambling is the only thing I think you can reasonably attack them for. They didn't create microtransactions, those had already been figured out in Korea. The DRM was necessary for Steam to be palatable to publishers (and it's always been more of a pro-forma thing than a real attempt at DRM like Denuvo), and a world without Steam would absolutely have seen per-publisher e-shops that would also have DRM. Tying game installation to a game client... again, that was a 'when' not an 'if', and they weren't even the first. If I recall, you had to install a client to install Wild Tangent games. The client was also, arguably, malware. |
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| ▲ | hamdingers 4 days ago | parent | prev | next [-] |
| > I think Steam has been a net positive for the gaming community This is probably true on balance, but needs to be tempered with the reality that they also pioneered or popularized many of the worst parts of modern gaming. Always-on DRM, paid DLC, loot boxes and exploitive monetization, esports gambling (indirectly, they were complicit until legal pressure forced them not to be), FOMO monetization, "early access" and launching incomplete games, etc. All exist in their modern forms at least in part due to Valve. Disclaimer: I'm a valve fanboy who buys all their first party software and hardware. They still put out great products despite the ways they've changed gaming for the worse. |
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| ▲ | SXX 4 days ago | parent [-] | | Valve did not do anything for Always-on DRM other than allowing it to exist on platform. On Steam itself DRM barely exists. | | |
| ▲ | account42 3 days ago | parent [-] | | Steam's DRM may be trivial to circumvent technically but the legal situation is clear: you do not own what you buy on Steam, you cannot resell it, cannot gift it to your friends once you are done, you cannot leave it to your heirs. And no, you don't have any guarantees that you yourself still have access to it tomorrow. | | |
| ▲ | SXX 3 days ago | parent [-] | | Technically Steam itself dont enforce any DRM on any games. Period. Unfortunately legal situation is not that different on any platform. GOG gives you offline installers and avoid technical DRM measures in all games, but that's about it - all other things you listed are still missing. |
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| ▲ | andyferris 4 days ago | parent | prev | next [-] |
| It interests me that it needs to be an "or". A HL3 team could essentially function as an independent studio using the Steam platform, with some funding thrown from Valve. Assuming the ROI is positive what exactly is holding them back? |
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| ▲ | wiseowise 4 days ago | parent | next [-] | | > Assuming the ROI is positive what exactly is holding them back? Absurd expectations. | |
| ▲ | ekianjo 4 days ago | parent | prev | next [-] | | > Assuming the ROI is positive what exactly is holding them back? The Google problem where every project that is not Search has a much worse ROI. | | |
| ▲ | jsheard 4 days ago | parent [-] | | Yep, and that applies to Valve at two levels because Steam dwarfs the ROI of their games, and their forever-games like Counter Strike dwarf the ROI of any singleplayer game they'd ever be able to make. It's a miracle they even got Alyx out of the door, that was a special case since it was part of their larger VR initiative. | | |
| ▲ | ekianjo 4 days ago | parent [-] | | And Alyx was probably a huge failure, ROI wise, because nobody buys VR headsets. I know, not "nobody", but by far and large it has remained a super niche market. |
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| ▲ | davidbanham 4 days ago | parent | prev | next [-] | | That’s what they did for CS:GO, developed by Hidden Path. | |
| ▲ | account42 3 days ago | parent | prev | next [-] | | They did try that, Episode 4 was being developed by Arkane. Unfortunately 4 comes after 3 which never happened. | |
| ▲ | Lanolderen 4 days ago | parent | prev [-] | | They want it to be good? Throwing it at a third party sounds like a good way to get a meh game and then have to release it since you've already spent X$ on it. |
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| ▲ | account42 3 days ago | parent | prev [-] |
| It'd rather gaming was where Netflix used to be before the Netflix you are thinking about - physical releases that you can actually own instead of being eternally beholden to a service provider. |