Despite facing increased competition in the space, not least from the Epic Games Store, Valve’s platform is synonymous with PC gaming. The service is estimated to have made $10.8 billion in revenue during 2024, a new record for the Half-Life giant. Since it entered the PC distribution space back in 2018, the rival Epic Games Store has been making headway – and $1.09 billion last year – but Steam is still undeniably dominant within the space.
Valve earns a large part of its money from taking a 20-30% cut of sales revenue from developers and publishers. Despite other storefronts opening with lower overheads, Steam has stuck with taking this slice of sales revenue, and in doing so, it has been argued that Valve is unfairly taking a decent chunk of the profits of developers and publishers.
This might change, depending on how an ongoing class-action lawsuit initiated by Wolfire Games goes, but for the time being, Valve is making money hand over fist selling games on Steam. The platform boasts over 132 million users, so it’s perfectly reasonable that developers and publishers feel they have to use Steam – and give away a slice of their revenue – in order to reach the largest audience possible.
For me, it failed because I wasn’t willing to install some shareholder-driven company’s storefront app on my computer just to play Mass Effect 3, so I pirated Mass Effect 3. Then I got to watch it fail because it turns out I wasn’t the only one willing to skip/pirate games because they came with Origin attached to them.
Epic’s exclusives are the exact same.
I get my PC games from five sources. Steam, GOG’s website, Itch’s website, standalone launchers (I’d probably be okay with a “store” of games as small as the Riot launcher, but I don’t use that because I don’t install rootkit anticheat), and piracy. Launcherless Itch and GOG have convenience parity with piracy with the added benefit of the devs getting paid (and the ease of acquiring updates), and I’ll usually use them over Steam if available. Itch could easily get bought by a corp like Humble did and CDPR is already a shareholder value company, but they sell DRM-free products that I can use even after the stores die / sell out.
A recent launch I paid for and didn’t use Steam for is “The Bazaar” - it has a standalone launcher. The game went pay to win so I uninstalled it, but its lack of presence on Steam didn’t keep me from playing it.
I’ll use stuff other than Steam no problem. But I’ll always cheer when a platform owned and operated by a shareholder backed company dies in favor of one that isn’t. My experience in the hobby space of PC gaming is better when there aren’t exclusives locked on EA Origin or UPlay or Microsoft UWP store or Epic, because I might want to play those games without installing a stock-ticker company’s adware on my computer. Having the space “capitalism free” is unrealistic, unless we’re talking “pirate everything”. I’ll settle for “profit driven” over “YOY growth driven” leaders in the space any day of the week.
Now, if Steam’s position as the best distributor/launcher platform is a de facto “monopoly”, what’s the solution to that? Anecdotally I know plenty of people that play non-Steam games while not playing any Epic games. Epic tries to fight Steam by directly paying developers to not publish on Steam, and also effectively guaranteeing studios a financial success by cutting a deal to put their game up for “free” on the Epic storefront. Plenty of games have been “Free” on Epic while full price on Steam. Valve tries to fight Epic by… Acting like Epic doesn’t exist. They don’t chase exclusives or get into a price war with Epic.
Steam is the most popular platform for PC game releases. A subset of users will not consider ever using other platforms. If we accept this as the definition of “monopoly” the way we’d say Windows has a monopoly on x64 PCs, how would changing the revenue split for devs (which appears to be the issue this company’s suing Valve over) alleviate this “monopoly”? Sounds to me like forcing Steam to explicitly allow “the game is more expensive on Steam” tactics would just make Steam even more of a no-brainer for devs over stuff like Epic or their own platform.
You could say that paying the devs/studios a better cut is the point, and I’d see the validity in the argument. But it’s completely unrelated to whether or not Valve operates as a monopoly.
Everyone is not you
If there weren’t enough people put off by Origin and uPlay to not install them or use them to buy games, Origin and uPlay would still exist. Steam didn’t kill them, all it did was exist and be a better platform that people actually wanted to use. There’s a whole graveyard of companies that tried to make “our own Steam”. Fucking Discord tried to do it. What’s that going to do for a marketplace where you’re selling “licenses” to users? What good’s your licensed copy of Fallout New Vegas on Amazon Prime Games Launcher when that launcher no longer exists? Say what you will about Steam, most people are pretty confident it’ll still be around in eight years.
If there weren’t enough people put off by the Epic Games Store, the EGS wouldn’t still be paying developers to put their shit on the store. Steam hasn’t killed it, and isn’t even attempting to kill it. It’s just existing and being a better platform that people actually want to use. If EGS can’t compete with Steam while giving shit away for free, that’s not a “Steam monopoly” it’s an indicator of how dogshit the opinion of Epic as a corporation and storefront is.
Origin failed because nobody wanted it. uPlay failed because nobody wanted it. The perks (being able to buy exclusives) weren’t worth the downsides (literally just making another account and installing another program on your computer). I think that’s beautiful. I hope it happens to Epic next.
Steam’s existence as an IPO/enshittification-proof platform has prevented the PC gaming storefront market from going the way of Netflix. Remember that? We had cable channels, pay-per-views, piracy, and VHS/DVDs/blu-rays as the only way to watch movies at home. Then a Blockbuster-over-mail company started getting licenses to let you pay to watch movies at home with one subscription, which was a massive success. Then every other IP holder went “hey wait, why are we paying Netflix when we could just eat the whole pie ourselves” and now we have Netflix Disney+ Max Peacock AppleTV+ Amazon Prime Video Fandango Paramount+ AMC+ Philo Hulu Tubi Fubo Dippy Weeno Poob all trying to be the new Netflix. And because Netflix itself is a shareholder-value-driven company, it’s putting ads in its paid product and jacking up prices and paying for exclusivity.
Y’know what people do seem to like? Microsoft Gamepass. I’ll never install it myself, same reason I’ll never install the Epic Games Store. But Microsoft is using an even less consumer friendly strategy (timed access to games with a subscription) to propose the same “upsides” as EGS (you don’t have to pay full price for games).