30% is average for distribution fees across all media industries.
In the games industry:
Microsoft (Xbox): 30%
Sony (PlayStation): 30%
GOG: 30% (used to be 40%)
Steam: 30%
Epic: 12% (the outlier)
Google (Android): 25-40%
Apple (iPhone): 30%
Music and film industry distribution deals range from 10% to as much as 60% depending on your contract. Yes it could be as low as 10% for people who just aren’t that popular. But it’s also not at the upper end of the spectrum for media distribution.
On PC, Microsoft takes a 0% cut of apps distributed through it’s store and 12% of games, so EGS isn’t really the outlier there, but regardless 30% being average in an existing anti-competitive industry doesn’t really prove anything about whether or not it’s a fair cost. That can easily be oligopoly collusion / price signalling which happens all the time.
Console makers like Microsoft and Sony are also funding building the hardware and maintaining the platforms since they lose money on up front hardware sales. I’m not saying I agree that this should be a legal business model, but they have more of an argument for charging 30%.
And regardless of all of that, when I’m talking about a fair price, I’m talking about a fair price in an economic sense, as in, does Valve provide more back to the economy then money they take out of it, or are they rent seeking? Given that Valve made more revenue per employee than literally any other tech company (pushing $1million/employee/year), all during a period where their employees literally were allowed to work on whatever personal projects they wanted (virtually none of which went anywhere or made Valve any money). In that context, I can’t see their fees as anything other than rent seeking. Yes make a profit, yes pay your employees well, keep a nice cushion, and invest in R&D, but Valve has been able to afford to do all of that and just burn / hoard cash at a ridiculous rate, all money that would be going to the actual game designers and developers if we had competitive markets.
Well here’s another fun fact about steam for you then, you can sell your game on steam and retain the full profit of the sale by selling steam keys on other platforms like itch.io or humble bundle. The only stipulation to this method of sale is that you have to sell it at the same price the game is listed on steam at. Steam does not take a cut of steam key sales and encourages developers to distribute steam keys. They are free to request from steam and you can request however many you would like. No other platform does this.
30% is average for distribution fees across all media industries.
In the games industry: Microsoft (Xbox): 30% Sony (PlayStation): 30% GOG: 30% (used to be 40%) Steam: 30% Epic: 12% (the outlier) Google (Android): 25-40% Apple (iPhone): 30%
Music and film industry distribution deals range from 10% to as much as 60% depending on your contract. Yes it could be as low as 10% for people who just aren’t that popular. But it’s also not at the upper end of the spectrum for media distribution.
On PC, Microsoft takes a 0% cut of apps distributed through it’s store and 12% of games, so EGS isn’t really the outlier there, but regardless 30% being average in an existing anti-competitive industry doesn’t really prove anything about whether or not it’s a fair cost. That can easily be oligopoly collusion / price signalling which happens all the time.
Console makers like Microsoft and Sony are also funding building the hardware and maintaining the platforms since they lose money on up front hardware sales. I’m not saying I agree that this should be a legal business model, but they have more of an argument for charging 30%.
And regardless of all of that, when I’m talking about a fair price, I’m talking about a fair price in an economic sense, as in, does Valve provide more back to the economy then money they take out of it, or are they rent seeking? Given that Valve made more revenue per employee than literally any other tech company (pushing $1million/employee/year), all during a period where their employees literally were allowed to work on whatever personal projects they wanted (virtually none of which went anywhere or made Valve any money). In that context, I can’t see their fees as anything other than rent seeking. Yes make a profit, yes pay your employees well, keep a nice cushion, and invest in R&D, but Valve has been able to afford to do all of that and just burn / hoard cash at a ridiculous rate, all money that would be going to the actual game designers and developers if we had competitive markets.
Well here’s another fun fact about steam for you then, you can sell your game on steam and retain the full profit of the sale by selling steam keys on other platforms like itch.io or humble bundle. The only stipulation to this method of sale is that you have to sell it at the same price the game is listed on steam at. Steam does not take a cut of steam key sales and encourages developers to distribute steam keys. They are free to request from steam and you can request however many you would like. No other platform does this.
Your failure to provide a reliable source for your claims is not my problem.
If you cannot provide a reliable source of your claims, your claim will be dismissed.