Discord Store Undercuts Epic With 10% Split

Why not 90/10? Asks the Discord Blog innocently, as the chat app announces that beginning next year their fledgling game store will begin offering developers 90% of the revenue for games sold there, taking only a 10% cut for themselves. This seems like a response to Epic Games, who made waves when they announced their new store would only keep a 12% cut. Now word is the Discord Store has passed them on the race to the bottom line:
Earlier this year though, we noticed a change happening in the game industry. We talked to a lot of developers, and many of them feel that current stores are not earning their 30% of the usual 70/30 revenue share. Because of this, we now see developers creating their own stores and launchers to distribute their games instead of focusing on what’s really important — making great games and cultivating amazing communities.

So, we asked ourselves a few more questions. Why does it cost 30% to distribute games? Is this the only reason developers are building their own stores and launchers to distribute games?

Turns out, it does not cost 30% to distribute games in 2018. After doing some research, we discovered that we can build amazing developer tools, run them, and give developers the majority of the revenue share.

So, starting in 2019, we are going to extend access to the Discord store and our extremely efficient game patcher by releasing a self-serve game publishing platform. No matter what size, from AAA to single person teams, developers will be able to self publish on the Discord store with 90% revenue share going to the developer. The remaining 10% covers our operating costs, and we’ll explore lowering it by optimizing our tech and making things more efficient.

We will also empower developers to communicate with their players by improving Verified Servers, extending their ability to add great content to the Activity Feed, and more. We believe if we iterate and work with developers, we can reverse platform fragmentation in the game industry while connecting developers and players closer together.
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21.
 
Re: Out of the Blue
Dec 14, 2018, 21:40
21.
Re: Out of the Blue Dec 14, 2018, 21:40
Dec 14, 2018, 21:40
 
DrSquick wrote on Dec 14, 2018, 19:01:
RedEye9 wrote on Dec 14, 2018, 18:51:
RedEye9 wrote on Dec 14, 2018, 18:48:
Oh Snap!
Merry XMas MoFos
uh wait, wat
How is this good for the consumer???

What does Steam do to justify a 30% cut? Great customer support? An app that's better than moderately passable? It took them 15 years to offer a return policy even! Their server craps itself every sale, voice chat fails 10% of the time.

Distributors in other sectors like IT hardware and software thrive on less than a 1% cut! Here's the financials for Ingram Micro, the largest software/hardware distributor in the world. They made $215M in after-expense income on $43 BILLION in sales. That's 0.49%.
RedEye9 wrote on Dec 14, 2018, 18:51:
RedEye9 wrote on Dec 14, 2018, 18:48:
Oh Snap!
Merry XMas MoFos
uh wait, wat
How is this good for the consumer???

What does Steam do to justify a 30% cut? Great customer support? An app that's better than moderately passable? It took them 15 years to offer a return policy even! Their server craps itself every sale, voice chat fails 10% of the time.

Distributors in other sectors like IT hardware and software thrive on less than a 1% cut! Here's the financials for Ingram Micro, the largest software/hardware distributor in the world. They made $215M in after-expense income on $43 BILLION in sales. That's 0.49%. https://ingrammicro.gcs-web.com/node/21876/html

You're confusing revenue with profit. Valve's revenue is 30% of sales. We don't know what their profit is because they are a private company. Ingram Micro makes less than 1% profit on their sales. What's their revenue?
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