Steam Increasing Revenue Share for Biggest Sellers

A Steam Community post on Steamworks Development features Valve discussing some of the business elements of selling games on Steam. They have revised the Steam Distribution Agreement to increase royalties they pay out for games that make more money, starting with games that pass the $10 million threshold. In addition to the rich getting richer, the new terms will allow their partners to freely disclose sales data. Here's a bit:
With that in mind, we’ve created new revenue share tiers for games that hit certain revenue levels. Starting from October 1, 2018 (i.e. revenues prior to that date are not included), when a game makes over $10 million on Steam, the revenue share for that application will adjust to 75%/25% on earnings beyond $10M. At $50 million, the revenue share will adjust to 80%/20% on earnings beyond $50M. Revenue includes game packages, DLC, in-game sales, and Community Marketplace game fees. Our hope is this change will reward the positive network effects generated by developers of big games, further aligning their interests with Steam and the community.

We’ve also made a change to the agreement regarding confidentiality of your sales data. We frequently get questions from partners who want to talk with other developers\third parties or publicly about the sales of their games on Steam. We've heard you, and we're updating the confidentiality provisions to make it clear that the partner can share sales data about their game as they see fit.
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6.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 17:40
6.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 17:40
Dec 1, 2018, 17:40
 
Mr. Tact wrote on Dec 1, 2018, 16:51:
Getting 75% is an increase to the developer? Wow. I didn't realize Valve was scalping devs. that badly. It is amazing they have done as well as they have.

The default revenue share is typically 70%/30% which is a very fair split. Remember before digital distribution they would easily see less than 50% per game sale, sometime far worse.

Steam handles taking payments, distributing your game, and is a great platform with a lot of dev work put into it. You have the Steam API with a lot of easy to build in features, you can easily integrate the Steam workshop to add value, and if you have in game items you can let players trade them on the marketplace and take a cut.

Also these number are probably what the AAA devs were already getting. They negotiated their own contracts with Steam.

The AAA devs aren't really leaving over the Valve taking 30%. They are leaving more because they dream about being the ones who get 30% from all the other games.
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 6.
Dec 1, 2018Dec 1 2018
 Re: Steam Increasing Revenue Share for Biggest Sellers