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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22 Replies. 2 pages. Viewing page 1.
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22.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 3, 2018, 02:52
22.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 3, 2018, 02:52
Dec 3, 2018, 02:52
 
MoreLuckThanSkill wrote on Dec 1, 2018, 17:23:
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What the hell is the default revenue share anyway, 70/30? That's a pretty big penalty for the privilege of Steam exposure.

Yes, but when it comes to the biggest sellers I am not exactly worried. They have bean counters watching this stuff and they wouldn't do it if it wasn't worth it. Cutting your traditional marketing budget (not totally obviously, but to a degree) and not having to worry about distribution is a big thing. Ask some people who deal with B&M goods sometime. Another (somewhat dumb, but real) benefit is saying to the money guys that you "have DRM" via Steam instead of having to go out and get it on your own.

I worry more about the smaller sellers. EA, AtctiBlizz, Bethesda, and Ubi all have their own marketplaces because they want to control a marketplace. I think they would want to do that no matter what because control is worth that cost to them.
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21.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 2, 2018, 09:49
21.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 2, 2018, 09:49
Dec 2, 2018, 09:49
 
5%ish goes to credit card handling. Probably another 5% easily goes to providing servers for downloading. So they are making 20% for marketing/exposure. For the big guys they are making 10%.
20.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 2, 2018, 03:04
20.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 2, 2018, 03:04
Dec 2, 2018, 03:04
 
eRe4s3r wrote on Dec 1, 2018, 22:59:
CJ_Parker wrote on Dec 1, 2018, 19:01:
eRe4s3r wrote on Dec 1, 2018, 17:45:
If it ain't on steam or gog I don't buy it. Simple as that. The 2hr no questions asked refund has saved me a ton of grief and I will not buy anything that tries to skirt that.

Origin with their Great Game Guarantee has always had a much more generous refund policy since MANY YEARS before Steam even began offering refunds at all.

*snip*

You may return EA full game downloads (PC or Mac) and participating third party titles purchased on Origin for a full refund. Refund requests can be made within 24 hours after you first launch the game, within fourteen days from your date of purchase, or within fourteen days from the game's release date if you pre-ordered, whichever comes first. And if you purchase a new EA game within the first 30 days of its release date and can't play it due to technical reasons within EA's control, you can request a refund within 72 hours after you first launch the game instead of 24.

^ 24 hour free demo effectively since it is not restricted by play time like Steam's 2h.

Neat, so add Origin to my preferred services list (If it ever offered fair € prices that is..)

Well, you can say a lot of bad stuff about EA but complaining about the prices is seriously 2009. They have (had) frequent sales on Origin in the last few years.

After the DLC travesty of the Mass Effect series they ditched that shit and DAI was available as a GOTY very quickly and it got discounted superfast, too.

Same for every subsequent release since then. SWBF was down from €60 to €29 after only three/four months or so. The €130 ultimate edition was down to €19 after only a year (that's when I bought the fucker).
MEA was also discounted very quickly as was SWBF 2 and BF1 as well.

They also gave away free DLC for some of their games all the time including the entire season pass for BF1 (granted this was after BFV had already been announced).
BF1 was on sale for €4.99 at the same time as the giveaway so you could effectively get the whole 'Revolution' complete pack for €4.99.

So, credit where credit is due. I mean, sure, the games may partially be complete fucking garbage and not even worth buying BUT you can absolutely get them for cheap within a very reasonable time from release.

Of course many people miss the EA sales cuz they never check Origin but a good place for all game deals is this Reddit so if you want fair prices for EA games then don't miss the sales. Easy.

I'm quite curious if this story will continue now that they have their premium subscription service.
They have actually had quite substantial discounts even on newer games like Madden (40% off) this Black Friday so it looks like their policy of fast and deep discounts may continue in spite of the subs service.
19.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 2, 2018, 01:11
19.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 2, 2018, 01:11
Dec 2, 2018, 01:11
 
jdreyer wrote on Dec 2, 2018, 01:00:
EA's return policy is much better than Steam.

Something I found a bizarre about Origin when I bought the Mass Effect DLC packs last week is that they don't have a shopping cart. You buy what you're looking at or you go home. The Oculus store is like this, too. I don't know if Origin has holiday sales like Steam does, but I know Oculus does, and I just think, if you're not going to have a shopping cart, why even bother? Do they really get as many impulse purchases from people checking out multiple purchases one at a time?
18.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 2, 2018, 01:00
18.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 2, 2018, 01:00
Dec 2, 2018, 01:00
 
eRe4s3r wrote on Dec 1, 2018, 17:45:
Creston wrote on Dec 1, 2018, 17:37:
MoreLuckThanSkill wrote on Dec 1, 2018, 17:23:
What the hell is the default revenue share anyway, 70/30? That's a pretty big penalty for the privilege of Steam exposure.

Yes, it's 70/30.

With a 20% cut they are without competition but really the big factor here is that it may lead to more dual releases again. But since every big publisher fucks around with their own shitty store apps I guess this won't matter much. If it ain't on steam or gog I don't buy it. Simple as that. The 2hr no questions asked refund has saved me a ton of grief and I will not buy anything that tries to skirt that.

EA's return policy is much better than Steam.
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17.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 2, 2018, 01:00
17.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 2, 2018, 01:00
Dec 2, 2018, 01:00
 
Dev wrote on Dec 2, 2018, 00:21:
Cutter wrote on Dec 1, 2018, 20:07:
go with platforms that actually ask for a reasonable cut say 5-10 points max.
What ones offer that? I mean 5% is barely above the credit card cut.

itch.io is the only one I know -- I believe developers can set itch.io's cut to anything, including 0% or 100%.

As far as I can see, Steam and GOG are both 30%, while Humble Bundle has a 75% developer/15% Humble Bundle/10% charity split (minus ~5% processing fees before the split).
16.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 2, 2018, 00:22
Dev
 
16.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 2, 2018, 00:22
Dec 2, 2018, 00:22
 Dev
 
To me the big news here is the steam sales numbers can finally be shared.
15.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 2, 2018, 00:21
Dev
 
15.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 2, 2018, 00:21
Dec 2, 2018, 00:21
 Dev
 
Cutter wrote on Dec 1, 2018, 20:07:
go with platforms that actually ask for a reasonable cut say 5-10 points max.
What ones offer that? I mean 5% is barely above the credit card cut.
14.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 22:59
14.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 22:59
Dec 1, 2018, 22:59
 
CJ_Parker wrote on Dec 1, 2018, 19:01:
eRe4s3r wrote on Dec 1, 2018, 17:45:
If it ain't on steam or gog I don't buy it. Simple as that. The 2hr no questions asked refund has saved me a ton of grief and I will not buy anything that tries to skirt that.

Origin with their Great Game Guarantee has always had a much more generous refund policy since MANY YEARS before Steam even began offering refunds at all.

*snip*

You may return EA full game downloads (PC or Mac) and participating third party titles purchased on Origin for a full refund. Refund requests can be made within 24 hours after you first launch the game, within fourteen days from your date of purchase, or within fourteen days from the game's release date if you pre-ordered, whichever comes first. And if you purchase a new EA game within the first 30 days of its release date and can't play it due to technical reasons within EA's control, you can request a refund within 72 hours after you first launch the game instead of 24.

^ 24 hour free demo effectively since it is not restricted by play time like Steam's 2h.

Neat, so add Origin to my preferred services list (If it ever offered fair € prices that is..)
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13.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 22:31
13.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 22:31
Dec 1, 2018, 22:31
 
Too little, too late. All of the big players are currently developing their own webstores. Might not have happened for some of them if this was in place 5 years ago.
“We’ve reached the point of this polarized pandemic where our current plan for salvation is convincing certain recalcitrant men that wearing masks is the testosteroney thing to do.“
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12.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 20:07
Cutter
 
12.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 20:07
Dec 1, 2018, 20:07
 Cutter
 
Yeha, the writing for Steam has been on the wall for a long time now. More and more people are just going to host their own digital storefronts or go with platforms that actually ask for a reasonable cut say 5-10 points max. I always amazed anyone went with Steam when they were asking 30 points for virtually nothing. Ahh well it was a good ride for them while it lasted. Steam will end up just being a shovelware platform.
"Well, he’s not a villain Summer, but he shouldn’t be your hero. He’s more like a demon, or a super fucked up god." - Morty Smith
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11.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 19:03
11.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 19:03
Dec 1, 2018, 19:03
 
Creston wrote on Dec 1, 2018, 17:36:
Our hope is this change will reward the positive network effects generated by developers of big games stop everyone from just making their own digital gameclient, eventually banishing us to the realm of irrelevance since we make one game every five years. Also, if you're an indie, for whom the 30% is REALLY a big deal: fuck you. Pay up, bitches.

^ hahaha perfect
10.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 19:01
10.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 19:01
Dec 1, 2018, 19:01
 
eRe4s3r wrote on Dec 1, 2018, 17:45:
If it ain't on steam or gog I don't buy it. Simple as that. The 2hr no questions asked refund has saved me a ton of grief and I will not buy anything that tries to skirt that.

Origin with their Great Game Guarantee has always had a much more generous refund policy since MANY YEARS before Steam even began offering refunds at all.

*snip*

You may return EA full game downloads (PC or Mac) and participating third party titles purchased on Origin for a full refund. Refund requests can be made within 24 hours after you first launch the game, within fourteen days from your date of purchase, or within fourteen days from the game's release date if you pre-ordered, whichever comes first. And if you purchase a new EA game within the first 30 days of its release date and can't play it due to technical reasons within EA's control, you can request a refund within 72 hours after you first launch the game instead of 24.

^ 24 hour free demo effectively since it is not restricted by play time like Steam's 2h.
9.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 18:34
9.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 18:34
Dec 1, 2018, 18:34
 
70/30 isnt bad for a distribution and cash collection etc. The problem is that 70/30 is also on microtransactions within the game too. Thats what the big boys dont want to share.
Its not the cough that carries you off but the coffin they carry you off in.
8.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 18:31
8.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 18:31
Dec 1, 2018, 18:31
 
Yep the market is making them lower for sure, that's how it works. To get the bigs back, they'd probably have to get to like 5%. No doubt they've been hit.
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7.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 17:45
7.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 17:45
Dec 1, 2018, 17:45
 
Creston wrote on Dec 1, 2018, 17:37:
MoreLuckThanSkill wrote on Dec 1, 2018, 17:23:
What the hell is the default revenue share anyway, 70/30? That's a pretty big penalty for the privilege of Steam exposure.

Yes, it's 70/30.

With a 20% cut they are without competition but really the big factor here is that it may lead to more dual releases again. But since every big publisher fucks around with their own shitty store apps I guess this won't matter much. If it ain't on steam or gog I don't buy it. Simple as that. The 2hr no questions asked refund has saved me a ton of grief and I will not buy anything that tries to skirt that.
Avatar 54727
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.
5.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 17:37
5.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 17:37
Dec 1, 2018, 17:37
 
MoreLuckThanSkill wrote on Dec 1, 2018, 17:23:
What the hell is the default revenue share anyway, 70/30? That's a pretty big penalty for the privilege of Steam exposure.

Yes, it's 70/30.
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4.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 17:36
4.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 17:36
Dec 1, 2018, 17:36
 
Our hope is this change will reward the positive network effects generated by developers of big games stop everyone from just making their own digital gameclient, eventually banishing us to the realm of irrelevance since we make one game every five years. Also, if you're an indie, for whom the 30% is REALLY a big deal: fuck you. Pay up, bitches.


Avatar 15604
3.
 
Re: Steam Increasing Revenue Share for Biggest Sellers
Dec 1, 2018, 17:23
3.
Re: Steam Increasing Revenue Share for Biggest Sellers Dec 1, 2018, 17:23
Dec 1, 2018, 17:23
 
-sGs- | Sa(V) wrote on Dec 1, 2018, 16:13:
A bit too late steam ... Big IPs already out of steam eco-system . Many big publishers are pulling the plug on steam already , EA , Activision , Bethesda , and probably soon Ubisoft .. Pretty soon steam is going to be a playground for indie games .. specially that volvo no longer make AAA games.

As it is now, I buy any indies I can on Gog instead of Steam. I don't think Valve is going to go under anytime soon, but yes there has been a gradual exodus of publishers/AAA titles from Steam.

What the hell is the default revenue share anyway, 70/30? That's a pretty big penalty for the privilege of Steam exposure.
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