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| 88. |
Re: Gabe Newell on EA vs. Steam |
Aug 18, 2011, 14:07 |
Beamer |
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It isn't all cloak and dagger to suck the poor clueless customer dry... it is more like normal business. This is the biggest reason, but not the only reason. Which is frustrating, as this reason is eroding fairly quickly. In fact, for the PC it will likely be dead soon. If the Windows 8 App Marketplace is done well it will be extremely soon. Of course, we'll let the size of that "if" go unmentioned because we all know it's the 800lb gorilla...
Two other big reasons, though: 1) They can't undercut consoles that much. Sure, right now it's a $10 differential, but if they drop it more there will be questions asked. Right now consoles audiences are the ones spending the most money and therefore the ones most important to keep happy. Having a game be $60 on consoles and $20 on PCs will just piss consumers off. Consoles haven't yet gone digital, so their prices can't easily be dropped, and console fans are more likely to just ignore a game if it pisses them off than buy it for another platform. Right now.
2) Consumers are still fixed on the AAA and Value pricing points. A game launching above $10 but below $50 ($60 on consoles) is going to be ignored - consumers will suspect it's cheap for a reason and ignore it. They'll think it's one of a billion PC games that litter Walmart shelves and used to litter CompUSA shelves that had decade-dated graphics and game-ending bugs; they'll think it's Big Rig Racing. Hell, virtually every industry has a notion of you get what you pay for - people often irrationally pay more for PC hardware to have "the best," people certainly do it with liquor where certain brands sole marketing push is being the most expensive, etc. This will eventually change. Every publisher has a nice Excel model correlating price to sales and they know that they can hit a sweeter spot than $50/$60 based upon their changing profits. They know they'll sell far more at lower prices, and they're relatively aware of where profit can be maximized. But even if they could drop right now there are still too many outstanding questions before anyone does: - everyone is afraid the first mover will get slaughtered by those afraid the titles are budgetware - early adopters still give way too much in profits. It's looking likely more profitable to launch at $60 and drop after 6 months than to launch at $40. No one is totally convinced of this, as it's absolutely true for huge titles and not so true for smaller titles, meaning more experimentation would be needed - lower launch prices invalidate sales. If every game launched at $19.99 they'd lose the huge impact Steam has created of doing a 50% off weekend. Again, though, it's hard to say whether the massive price-shock revenues are more or less than where they'd be if it had been that price all along, but it seems unlikely - at $19.99 we'd all buy what we want, but given 48 hours of $19.99 many of us jump just because it's a good deal.
Prices will eventually fall due to digital distribution, but don't be stupid and think it's because publishers/devs are sharing some of that pie with us - it's because they know lower prices will lead to higher profits if the costs have dropped. |
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Date |
Subject |
Author |
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1. |
Aug 17, 22:14 |
Re: Gabe Newell on EA vs. Steam |
MajorD |
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3. |
Aug 17, 22:16 |
Re: Gabe Newell on EA vs. Steam |
Prez |
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4. |
Aug 17, 22:17 |
Re: Gabe Newell on EA vs. Steam |
Cutter |
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5. |
Aug 17, 22:19 |
Re: Gabe Newell on EA vs. Steam |
[VG]Reagle |
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6. |
Aug 17, 22:22 |
Re: Gabe Newell on EA vs. Steam |
Overon |
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13. |
Aug 17, 22:52 |
Re: Gabe Newell on EA vs. Steam |
commonperson |
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14. |
Aug 17, 22:58 |
Re: Gabe Newell on EA vs. Steam |
[VG]Reagle |
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16. |
Aug 17, 23:19 |
Re: Gabe Newell on EA vs. Steam |
commonperson |
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20. |
Aug 17, 23:29 |
Re: Gabe Newell on EA vs. Steam |
CythrawL |
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22. |
Aug 17, 23:37 |
Re: Gabe Newell on EA vs. Steam |
commonperson |
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24. |
Aug 18, 00:01 |
Re: Gabe Newell on EA vs. Steam |
Cutter |
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52. |
Aug 18, 08:28 |
Re: Gabe Newell on EA vs. Steam |
commonperson |
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68. |
Aug 18, 10:28 |
Re: Gabe Newell on EA vs. Steam |
Silicon Avatar |
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71. |
Aug 18, 10:44 |
Re: Gabe Newell on EA vs. Steam |
ochentay4 |
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28. |
Aug 18, 00:37 |
Re: Gabe Newell on EA vs. Steam |
Mashiki Amiketo |
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49. |
Aug 18, 08:19 |
Re: Gabe Newell on EA vs. Steam |
commonperson |
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82. |
Aug 18, 12:28 |
Re: Gabe Newell on EA vs. Steam |
Iurand |
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25. |
Aug 18, 00:04 |
Re: Gabe Newell on EA vs. Steam |
Nucas |
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51. |
Aug 18, 08:25 |
Re: Gabe Newell on EA vs. Steam |
commonperson |
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21. |
Aug 17, 23:33 |
Re: Gabe Newell on EA vs. Steam |
entr0py |
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30. |
Aug 18, 01:08 |
Re: Gabe Newell on EA vs. Steam |
xXBatmanXx |
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86. |
Aug 18, 14:00 |
Re: Gabe Newell on EA vs. Steam |
Dev |
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89. |
Aug 18, 14:13 |
Re: Gabe Newell on EA vs. Steam |
Beamer |
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7. |
Aug 17, 22:26 |
Re: Gabe Newell on EA vs. Steam |
xXBatmanXx |
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9. |
Aug 17, 22:30 |
Re: Gabe Newell on EA vs. Steam |
killer_roach |
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53. |
Aug 18, 08:44 |
Re: Gabe Newell on EA vs. Steam |
LittleMe |
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83. |
Aug 18, 12:36 |
Re: Gabe Newell on EA vs. Steam |
killer_roach |
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11. |
Aug 17, 22:35 |
Re: Gabe Newell on EA vs. Steam |
^Drag0n^ |
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103. |
Aug 18, 21:21 |
Re: Gabe Newell on EA vs. Steam |
Asmo |
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104. |
Aug 18, 21:38 |
Re: Gabe Newell on EA vs. Steam |
RollinThundr |
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106. |
Aug 18, 23:14 |
Re: Gabe Newell on EA vs. Steam |
^Drag0n^ |
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109. |
Aug 19, 09:57 |
Re: Gabe Newell on EA vs. Steam |
Dev |
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110. |
Aug 19, 10:56 |
Re: Gabe Newell on EA vs. Steam |
killer_roach |
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2. |
Aug 17, 22:16 |
Re: Gabe Newell on EA vs. Steam |
Learning |
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8. |
Aug 17, 22:28 |
Re: Gabe Newell on EA vs. Steam |
Nucas |
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10. |
Aug 17, 22:32 |
Re: Gabe Newell on EA vs. Steam |
Overon |
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12. |
Aug 17, 22:36 |
Re: Gabe Newell on EA vs. Steam |
^Drag0n^ |
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15. |
Aug 17, 23:18 |
Re: Gabe Newell on EA vs. Steam |
Dades |
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17. |
Aug 17, 23:21 |
Re: Gabe Newell on EA vs. Steam |
Dades |
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18. |
Aug 17, 23:26 |
Re: Gabe Newell on EA vs. Steam |
commonperson |
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19. |
Aug 17, 23:29 |
Re: Gabe Newell on EA vs. Steam |
Dades |
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23. |
Aug 17, 23:42 |
Re: Gabe Newell on EA vs. Steam |
commonperson |
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40. |
Aug 18, 03:08 |
Re: Gabe Newell on EA vs. Steam |
Jensen |
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41. |
Aug 18, 03:42 |
Re: Gabe Newell on EA vs. Steam |
InBlack |
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42. |
Aug 18, 03:48 |
Re: Gabe Newell on EA vs. Steam |
Jerykk |
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44. |
Aug 18, 04:10 |
Re: Gabe Newell on EA vs. Steam |
Mashiki Amiketo |
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55. |
Aug 18, 08:45 |
Re: Gabe Newell on EA vs. Steam |
kanniballl |
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64. |
Aug 18, 09:28 |
Re: Gabe Newell on EA vs. Steam |
MattyC |
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69. |
Aug 18, 10:32 |
Re: Gabe Newell on EA vs. Steam |
^Drag0n^ |
| >> |
88. |
Aug 18, 14:07 |
Re: Gabe Newell on EA vs. Steam |
Beamer |
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92. |
Aug 18, 15:03 |
Re: Gabe Newell on EA vs. Steam |
Creston |
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93. |
Aug 18, 15:12 |
Re: Gabe Newell on EA vs. Steam |
killer_roach |
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105. |
Aug 18, 23:06 |
Re: Gabe Newell on EA vs. Steam |
^Drag0n^ |
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94. |
Aug 18, 15:16 |
Re: Gabe Newell on EA vs. Steam |
Beamer |
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99. |
Aug 18, 18:24 |
Re: Gabe Newell on EA vs. Steam |
Creston |
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100. |
Aug 18, 18:51 |
Re: Gabe Newell on EA vs. Steam |
Zefalephelah |
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101. |
Aug 18, 19:16 |
Re: Gabe Newell on EA vs. Steam |
Rattlehead |
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46. |
Aug 18, 05:20 |
removed |
Zefalephelah |
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47. |
Aug 18, 07:48 |
Re: Gabe Newell on EA vs. Steam |
InBlack |
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26. |
Aug 18, 00:20 |
Re: Gabe Newell on EA vs. Steam |
Creston |
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27. |
Aug 18, 00:35 |
Re: Gabe Newell on EA vs. Steam |
killer_roach |
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29. |
Aug 18, 00:42 |
Re: Gabe Newell on EA vs. Steam |
Sepharo |
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50. |
Aug 18, 08:23 |
Re: Gabe Newell on EA vs. Steam |
commonperson |
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31. |
Aug 18, 01:26 |
Re: Gabe Newell on EA vs. Steam |
Zefalephelah |
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33. |
Aug 18, 02:08 |
Re: Gabe Newell on EA vs. Steam |
Rattlehead |
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45. |
Aug 18, 04:15 |
Re: Gabe Newell on EA vs. Steam |
Muscular Beaver |
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48. |
Aug 18, 08:06 |
Re: Gabe Newell on EA vs. Steam |
Esoteric |
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34. |
Aug 18, 02:08 |
Re: Gabe Newell on EA vs. Steam |
PHJF |
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35. |
Aug 18, 02:10 |
Re: Gabe Newell on EA vs. Steam |
Krovven |
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43. |
Aug 18, 03:59 |
Re: Gabe Newell on EA vs. Steam |
Armengar |
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77. |
Aug 18, 11:43 |
Re: Gabe Newell on EA vs. Steam |
RollinThundr |
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80. |
Aug 18, 11:54 |
Re: Gabe Newell on EA vs. Steam |
Verno |
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98. |
Aug 18, 18:07 |
Re: Gabe Newell on EA vs. Steam |
RollinThundr |
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81. |
Aug 18, 12:22 |
Re: Gabe Newell on EA vs. Steam |
nin |
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84. |
Aug 18, 13:42 |
Re: Gabe Newell on EA vs. Steam |
kanniballl |
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85. |
Aug 18, 13:52 |
Re: Gabe Newell on EA vs. Steam |
Rattlehead |
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87. |
Aug 18, 14:02 |
Re: Gabe Newell on EA vs. Steam |
kanniballl |
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32. |
Aug 18, 02:05 |
Re: Gabe Newell on EA vs. Steam |
Lesaonar |
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36. |
Aug 18, 02:13 |
Re: Gabe Newell on EA vs. Steam |
Rattlehead |
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37. |
Aug 18, 02:27 |
Re: Gabe Newell on EA vs. Steam |
Lesaonar |
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38. |
Aug 18, 02:31 |
Re: Gabe Newell on EA vs. Steam |
Rattlehead |
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76. |
Aug 18, 11:38 |
Re: Gabe Newell on EA vs. Steam |
Lesaonar |
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39. |
Aug 18, 02:48 |
Re: Gabe Newell on EA vs. Steam |
peteham |
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56. |
Aug 18, 09:08 |
Re: Gabe Newell on EA vs. Steam |
gilly775 |
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75. |
Aug 18, 11:35 |
Re: Gabe Newell on EA vs. Steam |
Lesaonar |
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78. |
Aug 18, 11:45 |
Re: Gabe Newell on EA vs. Steam |
Creston |
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79. |
Aug 18, 11:48 |
Re: Gabe Newell on EA vs. Steam |
Lesaonar |
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54. |
Aug 18, 08:45 |
Re: Gabe Newell on EA vs. Steam |
Verno |
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57. |
Aug 18, 09:10 |
Re: Gabe Newell on EA vs. Steam |
007Bistromath |
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58. |
Aug 18, 09:16 |
Re: Gabe Newell on EA vs. Steam |
Verno |
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59. |
Aug 18, 09:18 |
Re: Gabe Newell on EA vs. Steam |
Beamer |
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74. |
Aug 18, 11:27 |
Re: Gabe Newell on EA vs. Steam |
Creston |
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60. |
Aug 18, 09:19 |
Re: Gabe Newell on EA vs. Steam |
007Bistromath |
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61. |
Aug 18, 09:23 |
Re: Gabe Newell on EA vs. Steam |
Beamer |
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62. |
Aug 18, 09:24 |
Re: Gabe Newell on EA vs. Steam |
007Bistromath |
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63. |
Aug 18, 09:25 |
Re: Gabe Newell on EA vs. Steam |
Verno |
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65. |
Aug 18, 09:37 |
Re: Gabe Newell on EA vs. Steam |
Verno |
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66. |
Aug 18, 10:20 |
Re: Gabe Newell on EA vs. Steam |
Rockn-Roll |
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67. |
Aug 18, 10:27 |
Re: Gabe Newell on EA vs. Steam |
nin |
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70. |
Aug 18, 10:34 |
Re: Gabe Newell on EA vs. Steam |
^Drag0n^ |
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73. |
Aug 18, 10:49 |
Re: Gabe Newell on EA vs. Steam |
MajorD |
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72. |
Aug 18, 10:48 |
Re: Gabe Newell on EA vs. Steam |
Verno |
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90. |
Aug 18, 14:21 |
Re: Gabe Newell on EA vs. Steam |
Dev |
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91. |
Aug 18, 14:26 |
Re: Gabe Newell on EA vs. Steam |
Beamer |
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95. |
Aug 18, 15:46 |
Re: Gabe Newell on EA vs. Steam |
WyldKat |
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96. |
Aug 18, 17:53 |
Creston |
Zefalephelah |
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97. |
Aug 18, 17:56 |
Re: Creston |
Rattlehead |
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102. |
Aug 18, 19:40 |
Re: Gabe Newell on EA vs. Steam |
KilrathiAce |
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107. |
Aug 19, 02:18 |
Re: Gabe Newell on EA vs. Steam |
Rockn-Roll |
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108. |
Aug 19, 07:23 |
Re: Gabe Newell on EA vs. Steam |
Beamer |
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111. |
Aug 20, 12:34 |
Re: Gabe Newell on EA vs. Steam |
Krovven |
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112. |
Aug 20, 15:36 |
Re: Gabe Newell on EA vs. Steam |
cronik |
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