But it doesn’t need to be sold for more? As evidenced by not being sold for more despite the cut Valve takes? If that were an issue the games would cost say 70 on Steam but 60 elsewhere?
It needs to be sold for 70 on Steam in order to bring in the revenue per copy they need for their RoI, why would they go and sell for less elsewhere if Steam with their 30% share sets the bar? People won’t feel ripped off, the price is the same, what they don’t realize is that the only reason the price is that high in the first place is that Valve gets 21$ from each sale! The company needs 49$/copy in their pockets, if the distributor’s share had always been 15% instead of 30% we would be buying games for 58$ instead of 70$ right now.
I find it absolutely wild that you seem to think Steam’s 30% cut is the sole reason AAA games cost $70. Have you ever looked into how much it costs to sell a game at a retail store? From what I’ve seen Steam takes roughly the same cut as most retailers do and then the publisher still has to produce the physical copies and distribute them. They would make the same amount on Steam if and only if they printed, burned, packaged, and distributed their physical copies for free, not to mention the promotional materials they’re sending out to retailers.
Everything I’m seeing indicates that compared to a physical copy (which is given for a majority of AAA games) a major publisher would earn far more money per copy on Steam than at GameStop, Target, Walmart, or any other retailer where they’re charging the same $70 price at. But Steam is the real problem that’s hurting their RoI, apparently.
I’ll agree I think Steam’s cut is high and they could earn a lot of favor by turning it down a bit, but your argument seeming to insinuate that their 30% cut is the sole reason games cost $70 is absolutely wild to me.
This discussion is about Steam, they have control over the market, all distributors are in the wrong and take too high of a cut, I’ll talk about the other distributors when we have a discussion about them.
So companies made due with the same cut from retailers for decades, Steam comes along and offers the same cut with none of the other expenses associated with those retailers (thereby giving them a better RoI than the same retailers they made due with for decades) and suddenly Steam is the reason games are so expensive.
For all of your talk that Steam’s awful cut sets the bar for the price or else they won’t make their RoI on games sold there, you suddenly don’t seem to care very much about the very many retailers these AAA publishers still regularly sell through that cost them a significantly larger percentage per game sold than Steam does.
As evidenced by games costing less on stores where the cut is lower!
Oh… wait…
Why would they lower their price if the same game needs to be sold for more on another platform in order to see a RoI?
But it doesn’t need to be sold for more? As evidenced by not being sold for more despite the cut Valve takes? If that were an issue the games would cost say 70 on Steam but 60 elsewhere?
It needs to be sold for 70 on Steam in order to bring in the revenue per copy they need for their RoI, why would they go and sell for less elsewhere if Steam with their 30% share sets the bar? People won’t feel ripped off, the price is the same, what they don’t realize is that the only reason the price is that high in the first place is that Valve gets 21$ from each sale! The company needs 49$/copy in their pockets, if the distributor’s share had always been 15% instead of 30% we would be buying games for 58$ instead of 70$ right now.
I find it absolutely wild that you seem to think Steam’s 30% cut is the sole reason AAA games cost $70. Have you ever looked into how much it costs to sell a game at a retail store? From what I’ve seen Steam takes roughly the same cut as most retailers do and then the publisher still has to produce the physical copies and distribute them. They would make the same amount on Steam if and only if they printed, burned, packaged, and distributed their physical copies for free, not to mention the promotional materials they’re sending out to retailers.
Everything I’m seeing indicates that compared to a physical copy (which is given for a majority of AAA games) a major publisher would earn far more money per copy on Steam than at GameStop, Target, Walmart, or any other retailer where they’re charging the same $70 price at. But Steam is the real problem that’s hurting their RoI, apparently.
I’ll agree I think Steam’s cut is high and they could earn a lot of favor by turning it down a bit, but your argument seeming to insinuate that their 30% cut is the sole reason games cost $70 is absolutely wild to me.
This discussion is about Steam, they have control over the market, all distributors are in the wrong and take too high of a cut, I’ll talk about the other distributors when we have a discussion about them.
So companies made due with the same cut from retailers for decades, Steam comes along and offers the same cut with none of the other expenses associated with those retailers (thereby giving them a better RoI than the same retailers they made due with for decades) and suddenly Steam is the reason games are so expensive.
For all of your talk that Steam’s awful cut sets the bar for the price or else they won’t make their RoI on games sold there, you suddenly don’t seem to care very much about the very many retailers these AAA publishers still regularly sell through that cost them a significantly larger percentage per game sold than Steam does.
Oh, is it other retailers the article is talking about? No, it’s not.