'

Steam changes their Revenue Sharing model to give high earners a larger cut

Will this move stop publishers from creating rival storefronts?

Steam changes their Revenue Sharing model to give high earners a larger cut

Steam changes their Revenue Sharing model to give high earners a larger cut 

At the start of this month, Valve updated their Steam Distribution Agreement with several significant changes, changing the agreement's language to address Europe's GDPR laws while changing their revenue-sharing system, which has revealed how revenue Valve generates from gaming using its storefront. 

For starters, we have Valve's basic rate, which grants them 30% of all earning that a game generates under $10 million, which includes game DLC, Community Marketplace fees, in-game sales and the sales of games themselves. Games that earn over $10 million on Steam will then have their revenue share adjusted to a 75%:25% split and then an 80%:20% split after $50 million. This change affects revenue earned after October 1st 2018. 

This model benefits developers that sell games in high volumes, mostly applying to AAA games on the platform. This structure is likely designed to keep large publishers on the platform, as Valve's large cut of sales was a huge contributing factor in the creation of rival storefronts like EA's Origin, Bethesda's Bethesda.net and Ubisoft's Uplay. 

Moving forward, Valve has expressed a desire to support new currencies and improve their server/bandwidth infrastructure, hoping to make the store more accessible in a larger number of markets. In recent weeks Valve has added support for the Australian Dollar to Steam. 
  

Steam changes their Revenue Sharing model to give high earners a larger cut  

Other changes to the agreement will allow Steam partners to report sales data and "share sales data about their game as they see fit". Developers have been requesting this change for several years. 

The main change in Steam's Distribution Agreement is Valve's new revenue share tiers, which are designed to keep large publishers/developers on the platform, lowering their cut of highly successful game sales to help prevent more developers from creating rival storefronts or abandoning Steam altogether. 

You can join the discussion on Valve's new Steam Revenue Sharing model on the OC3D Forums

«Prev 1 Next»

Most Recent Comments

03-12-2018, 14:33:09

looz
From: Valve
To: Major publishers


We've known each other for so long
Your heart's been aching but you're too shy to say it
Inside we both know what's been going on
We know the game and we're gonna play it
I just wanna tell you how I'm feeling
Gotta make you understand
Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you
Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you
Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cryQuote

03-12-2018, 15:55:35

NeverBackDown
Only hurts the small guys. No benefits to them just letting the big names earn even bigger profits.Quote

03-12-2018, 16:06:33

tgrech
To be fair, it's the big earners who lose the most in absolute terms for a given %age cut. They also happen to be the most likely publishers to have the resources to pack up shop and move elsewhere/make their own.Quote

03-12-2018, 16:18:34

looz
Quote:
Originally Posted by NeverBackDown View Post
Only hurts the small guys. No benefits to them just letting the big names earn even bigger profits.
This is necessary to keep the big names on the platform, since currently the steam's cut is so large that it's more beneficial to just develop and run their own.

If you're an indie developer, you basically have to use Steam for people to care about your game. Even if the cut was 50% most small devs would probably take that deal. But it's not like steam is only a necessary evil, they do have useful tools for game developers. And this is a move to ensure steam remains as the primary platform, which could be seen to be positive for smaller guys.

Though I do have a positive bias towards Valve in general since I quite like their approach and where they're throwing their money - I'm reaping benefits of them throwing money at desktop Linux daily.Quote

03-12-2018, 16:25:43

NeverBackDown
No. The money saved will go towards there own stores. Just going to fragment the market and hurt small guysQuote
Reply
x

Register for the OC3D Newsletter

Subscribing to the OC3D newsletter will keep you up-to-date on the latest technology reviews, competitions and goings-on at Overclock3D. We won't share your email address with ANYONE, and we will only email you with updates on site news, reviews, and competitions and you can unsubscribe easily at any time.

Simply enter your name and email address into the box below and be sure to click on the links in the confirmation emails that will arrive in your e-mail shortly after to complete the registration.

If you run into any problems, just drop us a message on the forums.