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Ubisoft Exec calls Steam's business model "unrealistic"

Ubisoft's move to the Epic Games Store Explained

Ubisoft Exec calls Steam's buisness model

Ubisoft Exec calls Steam's business model "unrealistic"

Starting with The Division 2, Ubisoft stopped selling its new AAA releases on Steam, partnering with the Epic Games Store. This ensured that future Ubisoft releases would only come to Uplay and The Epic Games Store. 

In a recent interview with the New York Times, Ubisoft's Vice President of Partnerships, Chris Early, confirmed that Valve's 30% revenue share was the primary reason for the company's move to the Epic Games Store.    

Ubisoft believes that Valve is asking too much from game developers, so much so that Valve can often make more profit from games than some developers. Compare this to Epic Games, who takes a 12% cut of a game's revenue on its storefront, less than half of Valve's basic rate. This allows developers to keep 88% of their game's revenue, representing a boost of over 25% in revenue per sale. 
 

   It’s unrealistic, the current business model that they (Valve) have. It doesn’t reflect where the world is today in terms of game distribution.

 

While Ubisoft's move to the Epic Games Store wasn't seen positively by all PC gamers, The Division 2's launch was a huge success on PC. The move resulted in a huge boost in Uplay's userbase, bringing more of Ubisoft's PC revenues in-house, resulting in Ubisoft keeping all sales revenue from a larger portion of The Division 2 sales. 

Other developers have also spoken out against Valve's revenue split, with Paradox Interactive's Fredrik Wester calling it "outrageous", saying that "I think the platform holders are taking too much money. Everyone in the press here, just quote me on that." 
 

Ubisoft Exec calls Steam's buisness model

(Ubisoft believes that Valve is abusing its power as PC gaming's king)

At this time, Valve doesn't appear to be planning any changes to the company's revenue-sharing policies, though it is worth remembering that Valve promises larger revenue shares after a game reaches specific financial targets. Even so, Valve's revenue split only increases to 80:20 after $50 million in sales value, which is still a lower revenue split than what Epic Games offers. 

You can join the discussion on Ubisoft's thoughts on Valve's business model on the OC3D Forums.    

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Most Recent Comments

30-08-2019, 08:59:51

Bridges
How much of a cut does Sony take? Microsoft? Walmart?Quote

30-08-2019, 09:34:41

tgrech
Quote:
Originally Posted by Bridges View Post
How much of a cut does Sony take? Microsoft? Walmart?
I think the point he's making is that large developers no longer really need to give anyone a cut on PC anymore(Since it's not a closed platform funded primarily through store commission unlike consoles/phone OS's/ect), if large developers can distribute things via their publishers own platforms and take a full cut, there's only so much cut they're going to give up for whatever extra sales distribution through other routes offers.Quote

30-08-2019, 09:39:15

WYP
Quote:
Originally Posted by Bridges View Post
How much of a cut does Sony take? Microsoft? Walmart?
IIRC Valve' cut is similar to that of Sony/Microsoft. That said, Valve doesn't make a console, Valve only does the storefront side of things.

You can argue that Sony/MS does a lot more to earn their money,Quote

30-08-2019, 22:26:56

MacLeod
Steam became a gianormous company that dominated PC gaming sales, made hard copies of PC games extinct, reported billion dollar revenue figures and were so dominant they were almost a monopoly.

Sounds pretty realistic to me.Quote

31-08-2019, 13:49:27

Warchild
Quote:
Ubisoft Exec calls Steam's business model "unrealistic"
This explains Ubisoft's move to Steam.
Don't you mean "this explains Ubisofts move to Epic?Quote
Reply
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