Remix.run Logo
herpdyderp 4 hours ago

Sometimes I wonder what we did to deserve Valve and how long it can possibly last.

benoau 3 hours ago | parent | next [-]

We let kids gamble so much money in games that they don't have to nickel and dime the adults.

franga2000 3 hours ago | parent | next [-]

That's true now, but Valve has been like this since the start, way before skins and microtransactions.

bitmasher9 2 hours ago | parent [-]

You’re ignoring how much of a role the TF2 hats played in pushing microtransaction skins.

Steam came out in 2003. TF2 hats came out in 2009. It’s lived in the world of micro transactions way longer than it lived in the before times.

regularfry 41 minutes ago | parent [-]

2013 rather than 2009, I think? The pyro dropped in 2010, and I'm pretty certain hats came later.

Polycryptus 36 minutes ago | parent [-]

I'd call crates the beginning, and those came with the Mann-conomy update in 2010.

nananana9 3 hours ago | parent | prev | next [-]

They also nickel and dime the adults, but only the ones who make the games.

It's fine though, because they're nice to players and they've brainwashed them into giving their money to Valve instead of to the developers who actually make the games they fucking play.

jvanderbot 2 hours ago | parent | next [-]

Without steam, I'd still be playing my CD version of Homeworld 2.

I have paid $10 for every $1 of game I play, perhaps as high as $100:$1. A 30% cut of that seems totally reasonable. I have hundreds of games I keep just in case, and have played 10s of games I'd never have considered because they dont appear in Game Informer, PC Gamer, GoG, Twitch, Youtube, or other channels. They just are magically brought to me by steam, and I buy it and try it because I'm an adult now.

If game creators hate this, I feel bad for them, but I don't want anything to change as a consumer.

j_maffe 2 hours ago | parent [-]

Of course 30% seems reasonble to you, you're not the creator of the games. It's quite confusing to me that you're endorsing the side that has an insane ROI instead of the side that is sufferring greatly to make ends meet.

efsavage an hour ago | parent | next [-]

A 70% take would have blown the minds of developers pre-Steam. Retailers took 40% and were ruthless about shelf space and inventory. Distributors took 20%. Plus you had to actually make a box/CD/etc. They were lucky to keep 30% not pay it.

This doesn't mean Valve is perfect but if a developer is "suffering" because of a 30% cut they probably need to improve their pricing/game/community/etc.

charcircuit an hour ago | parent [-]

The economy is not static. A good deal in the past is not necessarily a good deal in the present.

jvanderbot 2 hours ago | parent | prev | next [-]

I'm endorsing my side. Not Steam's side, or the creator's side.

Maybe their business model is awful, but I love what they do, and what they have done. They have made my linux machine a top tier gaming option, freeing me from the only use of windows left. They have brought me the steam deck, which has a thriving accessory market due to their creative commons licensing. Etc etc. They are pro consumer.

I want steam to continue largely as is. In an ideal world all artists would be better compensated for the joy they bring to the world, but I'm quite happy as a consumer of art. Not to be too harsh, but frankly, the existence of struggle for recognition does not entitle artists to a penny of my money or a second of my time beyond the transaction they propose, nor does it entitle them to anything that Valve does or makes. That we can all work together well is a function of a local solution to the tension of conflicting interests. Valve is seeking a balance. It could be much worse for both sides.

But if you want, think of it this way - all of Steam's profits, billions of dollars, are only 30% of the sales they have brought. They made 17 Billion in rev last year, so nearly 25 Billion went to game makers / publishers. This is 2-3x what spotify paid to artists in the same year.

FloatArtifact 21 minutes ago | parent | next [-]

Regarding the 30% cut. Developers can actually generate steam keys and publish them on third-party sites which can be redeemed by users on Steam. Developers then get 100% of the profit.

j_maffe an hour ago | parent | prev [-]

> Valve is seeking a balance.

They're demonstrably not. I'd advise you to read up on the concept of a monopoly.

> They made 17 Billion in rev last year, so nearly 25 Billion went to game makers / publishers. This is 2-3x what spotify paid to artists in the same year.

And? I don't understand why you're just comparing two values in absolute values. You're talking as if Valve is giving away money.

Aromasin 37 minutes ago | parent | prev [-]

You're implying that Sales, Marketing, and Distribution is not a valuable service by saying 30% is not reasonable. I work in the electronics industry selling components. Suppliers regularly give us 30% margin, far more on some products, despite the upfront cost of making a new microcontroller or FPGA being far in excess of the most expensive video games ever made, with our value add being, to be frank, much less than Steam. 30% margin is about average for distribution, be it food, minerals, cars, or any other industry.

If I didn't have Steam (or equivalent service like GoG), I wouldn't buy new games. That's just reality. I would play the same games I have for decades. Instead, Steam has created a very effective recommendation engine that gives me a great selection. That's more than worth a 30% cut.

jdoe1337halo 3 hours ago | parent | prev | next [-]

I agree that 30% is too large of a cut, but what would be appropriate? 15%? Steam does add a ton of value from an immediate audience, solid advertising opportunities, and amazing distribution for the developer.

kay_o 3 hours ago | parent | next [-]

As that has done both sides of games, I would like to propose some doubts for people to consider on that is dissimilar to the standard b2b saas; for to clarity I'm not saying 30% is good

- One chargeback for your 5$ game can consume you 55$ or more, handful and you permanently lose the ability to accept the payment anywhere including future businesses outside of games

- Amount of people that will take parents cards is eye watering

- The value of offline payment acceptance in the form of physical cards (kids do not possess standard payment rails but can acquire your game on steam in the cash)

- They don't take flat 30% for almost a decade now

- You don't often get to use Stripe or 2-3%. Your cost closer about 15% if you choose to process you own payments

SXX 2 hours ago | parent | next [-]

> They don't take flat 30% for almost a decade now

Yes Valve is very generous.

They take MORE from developers who make LESS money. I sure bottom 98% of developers never sell above $10,000,000 to decrease cut from 30% to 25%.

Very few indie devs or small indie studios ever sell over 50,000-100,000 copies.

PS: In practice if your project funded by publisher it means that you as developer will make less money from a game than Valve.

rowanG077 5 minutes ago | parent [-]

> PS: In practice if your project funded by publisher it means that you as developer will make less money from a game than Valve.

So that essentially means a publisher takes even more than valve, while doing almost nothing.

MetaWhirledPeas 2 hours ago | parent | prev [-]

> One chargeback for your 5$ game can consume you 55$ or more, handful and you permanently lose the ability to accept the payment anywhere including future businesses outside of games

This sounds like personal experience. Can you elaborate?

Edit: OHH perhaps you are saying this is one of the benefits of Steam; that it shields you from all this.

kay_o 2 hours ago | parent | next [-]

> Edit: OHH perhaps you are saying this is one of the benefits of Steam; that it shields you from all this.

Yes. In a sijmilar way: regular companies get Stripe at commodity pricing, games get xsolla, paysafe, tebex, and a massive compliance questionnaire, games are software (to you) but closer to porn or gambling on risk (to MoRs and processors).

People are less "likely" to charge back Steam because of their other games being frozen and Steam has volume to dilute chargebacks whereas you starting out may hit double digit dispute rates in one. Whether this is fair is an exercise best left to the reader ;.

maccard 2 hours ago | parent | prev [-]

Yeah - steam handle this for you.

topham an hour ago | parent | prev | next [-]

EA presented their numbers for their online store. They were making something like 12%, and losing money.

They ran it at a loss and try to use its existence to declare everyone else overcharging. Apple, Google, Steam. Meanwhile, they were unable to make money, just proving they don't know how business works.

l11r 21 minutes ago | parent [-]

You mean Epic Games, don't you?

Rucadi 2 hours ago | parent | prev | next [-]

And doesn't forbid you from using their platform for free if you sell the keys by yourself and you can also decide to publish your game to other stores...

Hikikomori 3 hours ago | parent | prev | next [-]

How about charging for services rendered based on cost to produce them rather than some arbitrary number. Some effective competition would be good, but likely outcome is publishers taking more.

bitmasher9 2 hours ago | parent | next [-]

I never understood people who argue steam doesn’t have real competition.

The number of fully funded attempts to compete with steam is impressive. Steam has more competition than any other of the major app stores. Steam also had to provide additional value over pre-existing methods of installing games on the PC in a way the Android Play Store or the PlayStation Store did not have to.

0cf8612b2e1e 2 hours ago | parent [-]

It is incredible how much the other stores fumbled the implementation. As a rule, Epic, Origin, etc apps were terrible. Laggy, bad UI, sometimes difficult to even complete a purchase.

You would have thought that close relationship with the games industry- someone must know how to make a high performance native application. Yet it always felt like web developers pumping out another half assed Electron platform. The Steam store must generate billions in revenue -put some real manpower behind the engineering.

ahartmetz an hour ago | parent [-]

What's more, Epic spends order of magnitude a billion dollars per year on free games on the Epic Store. People still don't want the Epic Store because it's crap. Like Jesus H. Fucking Christ, do these assclowns ever get a clue?

I'm very fine with them not getting a clue though, Valve spends money and effort on promoting Linux and Epic (Tim Sweeney) kinda does the opposite. With all the shit Microsoft is pulling, he still prefers Windows while complaining about it.

Forgeties79 3 hours ago | parent | prev [-]

I feel like that just becomes another situation where bigger organizations get more bargaining power and get better deals, so you’re just kind of shifting problems. I’m not saying a flat percentage like they have is necessarily the best solution, but I’m not sure trading problems is a good idea either. Just seems like a different way for smaller developers to get screwed.

j_maffe 2 hours ago | parent [-]

> bigger organizations get more bargaining power and get better deals

This is exactly how it's setup right now.

Forgeties79 an hour ago | parent [-]

I thought the 30% was universal. Well that’s a bummer to learn

j_maffe an hour ago | parent [-]

https://www.geekwire.com/2018/valves-new-steam-revenue-shari...

Forgeties79 3 hours ago | parent | prev [-]

Linux releases they only take 10% FWIW

Edit: whoops that’s completely false. I do not know where I got that idea

LollipopYakuza 2 hours ago | parent | next [-]

That sounds great but I can't find any information about it. Do you have a link, please?

ekianjo 2 hours ago | parent | prev [-]

Nope

BobaFloutist an hour ago | parent | prev | next [-]

When I'm interested in an indie game, I always go first to the developer's website to see if I can just buy a copy directly from them. The vast, vast majority of the time I have to buy it through Steam, maybe Epic, and itch/gog if I'm lucky. It's vanishingly uncommon for them to host the game themselves.

cma 30 minutes ago | parent [-]

For indies Steam's network lock-in effects are so strong that if you sell without their cut off Steam, instead of same price eating their cut on Steam, you likely do worse. Because selling off-Steam takes one sale out of their algorithm.

Same reason to embeddings your trailer on your site with YouTube, even if you could afford the bandwidth and keep users from having to watch ad-rolls--self-hosted and the YouTube algorithm will punish you.

cortesoft 2 hours ago | parent | prev | next [-]

Developers choose to give Steam 30% of their revenue because they know the steam channel increases their revenue by more than 30%. Doesn't that make it a good deal for developers?

AmbroseBierce an hour ago | parent [-]

Attention span is finite and Steam took a big chunk of it from gamers, in other words there is a chance that in a world where everyone hated closed platforms like steam (for not allowing reselling or any other reason) direct ads would be more favorable for developers than steam, or word of mouth, or any of it's alternatives.

BobaFloutist an hour ago | parent | next [-]

Ok, so now you're criticizing them for being too successful.

They don't own the OS, they don't (until very recently) own the hardware, they haven't really made any major uncompetitive or anti-consumer moves I'm aware of, and they provide a service that the majority of devs consider worth it.

I guess you could argue they're taking advantage of a bit of a "natural monopoly", but there's still plenty of room for other people to eat their lunch, and things like itch seem to have carved out a niche for devs that would rather keep their money than get the additional services Steam offers.

I don't think Steam is flawless, but for how powerful they are, they sure seem a lot less evil than almost every other large corporation.

cortesoft 35 minutes ago | parent | prev [-]

Sure, if we were in an alternative reality, things would be different.

Valve built a platform that gamers like, and gamers like it for all the choices Valve made.

I also find it interesting you chose "not allowing reselling" as a thing that would have made users not like steam... but not allowing reselling is probably the feature that game developers like the most! I wouldn't be surprised if developers would choose to keep the 30% fee over dropping the fee but changing to allow reselling.

nightpool 2 hours ago | parent | prev | next [-]

Plenty of devs choose to sell on other platforms or directly and do fine. Steam doesn't have a monopoly on games the way Apple and Google do

ux266478 12 minutes ago | parent | prev | next [-]

Nah, I'm happy to pay the guild, they put that 30% to good use. I just wish their partner portal wasn't a gigantic pile of crap in return.

para_parolu 2 hours ago | parent | prev | next [-]

All distribution channels that existed before steam are still available. Multiple competitors to steam are available.

beart 2 hours ago | parent | prev | next [-]

My understanding is the tools that Steam provides as part of it's developer platform are top notch. And there are a lot of integration points such as cloud saves, social, match making, achievements, store, and so on. There is also a robust CD pipeline.

I can easily see this providing value above and beyond most other retailers that would sell video games. For example, Best Buy takes a 30% cut for physical merchandise, without providing any of the above mentioned features.

ekianjo 2 hours ago | parent | prev [-]

Again that old, tired argument. nobody has a gun to the devs head to force them to sell on steam

freehorse 3 hours ago | parent | prev | next [-]

Most other companies would still nickel and dime the adults, though.

tapoxi 3 hours ago | parent [-]

They still do that, Valve popularized the concepts of battle passes (with Dota 2) and loot boxes (with Team Fortress 2). They also took a paid game with TF2 and added all that monetization after the fact.

Counter-Strike especially has a pretty nasty gambling scene that Valve refuses to control, even though its only possible because of their marketplace and APIs.

philipallstar 3 hours ago | parent | prev | next [-]

"We" is the kids' parents, and I would assume it's the parents' money.

xboxnolifes 2 hours ago | parent | prev | next [-]

Does Valve even own games played by kids anymore? Aren't all of the cs skin traders and tf2 players in their 20s at youngest?

WhrRTheBaboons 2 hours ago | parent [-]

They are not. The literal selling point of valve's games for kid gambling is that you don't need to pass KYCs for gambling with steam credits.

doctorpangloss an hour ago | parent | prev [-]

The problem with Steam is developers are paying 30% to introduce their players to CSGO and DOTA2.

Another POV is, nobody on HN has any idea what he's talking about, it's all vibes.

wredcoll 35 minutes ago | parent | next [-]

I too disapprove of the csgo/dota2 gambling markets on principle, but how many people actually participate in it? Like, 10k? 100k? 1 million? That seems hard to believe.

12_throw_away an hour ago | parent | prev [-]

[dead]

seanw444 4 hours ago | parent | prev | next [-]

Gabe better be immortal.

giobox 3 hours ago | parent | next [-]

I really wish the company would talk more about the post-Gabe transition, or at least begin to give us a rough indication of where the company plans to go.

Those of us who have been customers over 20 years often have a pretty significant investment in Steam content, and Gabe is getting old.

ecshafer 3 hours ago | parent | next [-]

AFAIK his son has been working there for quite a while and is the heir apparent.

seanw444 3 hours ago | parent [-]

I don't know anything about his son, but hopefully "don't screw up your father's legacy" is a core tenet for him. That news gives me slight hope.

kgwxd 2 hours ago | parent | prev | next [-]

No company will ever do that. Even if they did, no one on the planet should expect it to play out as described. The whole anti-DRM position is based on the fact promises aren't worth a damn thing.

giobox 2 hours ago | parent [-]

Publicly announced succession plans happen fairly regularly, especially for a company as stable as Valve. Tim Cook is 65 and just did so for Apple. The announcement of Ternus was hardly a bolt from the blue, either. Gabe is 63, and there is little to no indications.

deafpolygon 3 hours ago | parent | prev [-]

They have a vat with brain hookups[0] waiting to place Gabe in, so immortality is nigh. No post-Gabe transition needed.

[0]: https://imgur.com/a/2XbM18n

edit: fixed image link

wvbdmp 4 hours ago | parent | prev [-]

He’s going to die in a fucking scuba diving accident, I have nightmares about it constantly

vablings 3 hours ago | parent | next [-]

I highly doubt it for a number of factors.

- Most of his dives look to be rec depth

- He isn't running any crazy gear like a CCR

- He has instant access to a chamber, so any DCS worries are virtually zero

- There is no go-itis for him. If weather is bad, he just packs up and sails to somewhere nicer

Out of all the rich people hobbies, scuba is about the safest

dghlsakjg 2 hours ago | parent [-]

Scuba diving is a pretty risky activity on the scale of things that rich people do in their everyday life. Golf and cycling are a lot safer.

Scuba fatalities fall into a few buckets, the big two are inexperience/bad decision making, and older folks with health issues (underwater heart attacks/respiratory distress, basically).

As a former dive pro, an overweight 63 year old is someone that I would keep a very close eye on while diving.

The odds are pretty low, but there is a reason that many life insurance companies exclude scuba divers from their coverage.

That said, I'm happy to let him live as dangerously as he wants, he deserves it.

nialv7 3 hours ago | parent | prev | next [-]

Have you warned Gabe about this

kgwxd 2 hours ago | parent | prev [-]

Hope Linus isn't on that same expedition.

benbristow 34 minutes ago | parent | prev | next [-]

Privately owned company, GabeN is getting on a bit now, he does have a son mind, we'll see what happens later on.

ZekeSulastin 3 hours ago | parent | prev | next [-]

If your “we” is Australia, you could have implemented consumer protections then sued Valve for ignoring them: https://www.accc.gov.au/media-release/valve-to-pay-3-million...

thrownthatway 3 hours ago | parent [-]

That was 9 years ago.

Are they compliant in the Australian market now?

SXX 2 hours ago | parent | next [-]

They are, but they only implemented proper refunds after being pushed by Australia.

2 hours ago | parent | prev [-]
[deleted]
robotswantdata 16 minutes ago | parent | prev | next [-]

Don’t mention the cs case gambling

giancarlostoro 3 hours ago | parent | prev | next [-]

I just wish they made more games than they currently do. Their games are always nicely polished and unique / creative in their own respect.

fareesh 19 minutes ago | parent | prev | next [-]

son of gaben may live upto the legend, otherwise it ends with him

mghackerlady 2 hours ago | parent | prev | next [-]

Valve will only be good if it stays privately owned. Good things go to shit as soon as investors become involved

artursapek 20 minutes ago | parent | prev | next [-]

Valve practically has a monopoly on PC gaming, I think they're pretty fat and happy too ;D

riffraff 2 hours ago | parent | prev | next [-]

I felt the same about early 00s Google. It will probably not last forever.

tjpnz 3 hours ago | parent | prev | next [-]

I'm optimistic provided they continue to be privately held and don't parachute in a professional executive to be CEO after Gabe departs.

kridsdale1 3 hours ago | parent [-]

This is the answer. Enshitification is a requirement of the fiduciary duty of public companies. A private company can stay good forever.

thrownthatway 3 hours ago | parent [-]

Fiduciary duty doesn’t mean what you think it does.

https://www.investopedia.com/ask/answers/042915/what-are-som...

u_fucking_dork 28 minutes ago | parent [-]

Fiduciarily speaking, you don’t know what I think it means

pjmlp 3 hours ago | parent | prev | next [-]

Until the current management retires, as it usually goes.

ReptileMan 3 hours ago | parent [-]

In my experience family held companies do tend to keep their values somewhat intact on succession.

idiotsecant 2 hours ago | parent [-]

This seems like the opposite of almost every family dynasty company that has ever existed. The second generation might keep things on track. The third generation never will.

Night_Thastus an hour ago | parent | prev | next [-]

They're a private company. Not all private companies are good, but all public ones inevitably turn terrible.

lysace 18 minutes ago | parent [-]

Lots of counter-examples.

ASML, Berkshire Hathaway, Novo Nordisk, TSMC, Saab, Atlas Copco.

(Perhaps not that many from the US though, if that's your perspective.)

colechristensen 4 hours ago | parent | prev [-]

I think many more companies would operate like this if acquisition and mergers were much more difficult.