teemoisfun

Member
Mar 19, 2021
924
Brazil
This argument doesn't really work and it never has and unfortunately it was Tim Epic himself who solidified that it doesn't work because he has already admitted before that by not charging 30% they quite literally can't do certain things:


View: https://twitter.com/TimSweeneyEpic/status/1474955912473415683

Because 30% isn't too much, it's actively used by every other storefront to do consumer friendly things like:

* offer the aforementioned gift cards (gift card regulations means Epic would actively lose money if they offered gift cards for anything other than V-Bucks)

* cover high merchant surcharge fees (in some countries some of the merchant surcharge fees are so high that Epic would lose money from their low cut, so they pass the fee onto the consumer instead of covering it, which is completely different from how basically every other retailer on the planet works because they all take "high" cuts, even outside of gaming)

And of course, actually work on their storefront faster than the speed of snail because the low cut is making it harder for the company to stay afloat.

Tim Epic saw a system that basically every physical retailer and every other digital retailer does, went "lol that's dumb", and has been reaping the consequences since.

If your cut is so low you can't actively provide gift cards or cover consumer's merchant surcharge fees globally, it's too low and you shouldn't be forfeiting consumer friendly stuff like that especially when the lower cut did not at all "pass the savings onto the consumer".

When you're at the scale of Google and Apple, 30% is too much - and I don't mean the size of the companies, but the size of their monopolized markets.
 

Dakkon

Member
Oct 27, 2017
4,402
When you're at the scale of Google and Apple, 30% is too much.

It doesn't matter what scale you're at, because the cut is used for the things mentioned. You don't magically start not losing money on gift cards @ 12% cut just because you're at Google or Apple's scale, all of them would stop offering gift cards if they had to go to that low of a cut because the economics simply doesn't work.

And at the end of the day, anyone in their right mind should want these storefronts to not just coast by but have a very comfortable amount of backup money, because the instant these storefronts die so does everyone's purchased products on them. This is my main takeaway from this article even, if Epic is in a bad spot that makes their storefront somewhat untrustworthy to buy products on, tbh.
 

PJTierney

Social Media Manager • EA SPORTS WRC
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Mar 28, 2021
3,771
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So how well has Fortnite been doing in recent years, does anyone have a nice graph that could illustrate how Epic are now starting to struggle?

Not saying it's entirely down to one product, but it's one of the biggest products in gaming so could have an impact I guess.
 

Alvis

Saw the truth behind the copied door
Member
Oct 25, 2017
11,297
So how well has Fortnite been doing in recent years, does anyone have a nice graph that could illustrate how Epic are now starting to struggle?

Not saying it's entirely down to one product, but it's one of the biggest products in gaming so could have an impact I guess.
It does well enough that you would have to be unfathomably stupid in order to own it and still have financial issues

... 🤔
 

teemoisfun

Member
Mar 19, 2021
924
Brazil
It doesn't matter what scale you're at, because the cut is used for the things mentioned. You don't magically start not losing money on gift cards @ 12% cut just because you're at Google or Apple's scale, all of them would stop offering gift cards if they had to go to that low of a cut because the economics simply doesn't work.

And at the end of the day, anyone in their right mind should want these storefronts to not just coast by but have a very comfortable amount of backup money, because the instant these storefronts die so does everyone's purchased products on them. This is my main takeaway from this article even, if Epic is in a bad spot that makes their storefront somewhat untrustworthy to buy products on, tbh.
Are you saying that the luxury company Apple, valued at 2.7T dollars, would let the app store die if they couldn't make as much money as today?
 

NetMapel

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Oct 25, 2017
3,540
Every VFX studios who have invested heavily in unreal for virtual productions just gasped in unison.
 

hersheyfan

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Oct 25, 2017
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theres proof it doesnt take 30%, apple already gave up 15% for small developers. and steam gives up 10% for big developers. itch io is able to do 10% that includes hosting files, both stripe and shopify are able to do 3% for the payment processing.

valve does a lot with the 30% no doubt, they make steam deck, proton, steamvr, but that doesnt meant developers wanted to fund these products in the first place
Who cares if the devs wanted to fund these products? Its the end users like us who benefit from these additional services, and it's our money that pays their salaries. This isn't a charity.
 

Alvis

Saw the truth behind the copied door
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Oct 25, 2017
11,297
Are you saying that the luxury company Apple, valued at 2.7T dollars, would let the app store die if they couldn't make as much money as today?
No, they did not say that, that is a sentence that you entirely made up, every single word in your sentence, from start to finish, is completely made up.

What they said is that if their cut was that low they would not have physical gift cards because every card sold would make them literally lose money. That's what they said. Nothing else.
 

closer

Member
Oct 25, 2017
3,192
Who cares if the devs wanted to fund these products? Its the end users like us who benefit from these additional services, and it's our money that pays their salaries. This isn't a charity.

What I'm about to say isn't necessarily directed at you, I'm just using your quote, and there is no guarantee (I would agree that the chance is not very high) that devs/publishers receiving additional funds would use it to support their businesses rather than putting it into the coffers at the top, but it's always been weird to me to see this sentiment alongside ppl commiserating about devs losing their jobs. Like at one turn of the head it's a consumer-focused me first type of thing and at another turn it's a damn you towards layoffs.

I could see devs attempting to join specific companies that use profits from larger shares of their games getting sold to bolster their employees but that would likely be like a decade-long process to sus out which companies take care of their own and which don't give a shit
 

PLASTICA-MAN

Member
Oct 26, 2017
24,356
Iiirc, they get like 5% of every game revenue if the game profits exceeded 1 million dollars. Now they gonna ask for a bigger percentage?
 

teemoisfun

Member
Mar 19, 2021
924
Brazil
No, they did not say that, that is a sentence that you entirely made up, every single word in your sentence, from start to finish, is completely made up.

What they said is that if their cut was that low they would not have physical gift cards because every card sold would make them literally lose money. That's what they said. Nothing else.
And I'm saying that his logic doesn't apply to Apple or Google.
 

Tagyhag

Member
Oct 27, 2017
12,761
Did any Era user defending Epic ever demonstrate the exact percentage that stores should have? And what it should be based on?

Like, should Steam be a 14%? GOG 7%?

Because I'm going to assume that most of those users aren't just going by Tim's word, because that would be idiotic.
 

SteveWinwood

Member
Oct 25, 2017
18,769
USA USA USA
Did any Era user defending Epic ever demonstrate the exact percentage that stores should have? And what it should be based on?

Like, should Steam be a 14%? GOG 7%?

Because I'm going to assume that most of those users aren't just going by Tim's word, because that would be idiotic.
ive done the math and its exactly 6 times pi

do not ask to see my work
 

GameDev

Member
Aug 29, 2018
564
Did any Era user defending Epic ever demonstrate the exact percentage that stores should have? And what it should be based on?

Like, should Steam be a 14%? GOG 7%?

Because I'm going to assume that most of those users aren't just going by Tim's word, because that would be idiotic.

30% is a holdover from brick and mortar days when 30% was the industry standard for retailers, and not just video game retailers. Steam basically looked at what everyone else was charging and did the same because they were creating a digital version of that.
 

eathdemon

Banned
Oct 27, 2017
9,690
30% is a holdover from brick and mortar days when 30% was the industry standard for retailers, and not just video game retailers. Steam basically looked at what everyone else was charging and did the same because they were creating a digital version of that.
as a costumor, between steamworks, proton ect, that 30 percent seems justified, egs that 12% not so much.
 

LewieP

Member
Oct 26, 2017
18,206
If you run Fortnite, the only financial problem you should be having is "where do we keep all this money? Will it all fit in a bank account?"

Colossally mismanaged company, and it's the laid off staff that are paying the price.

valve doesnt get a cut elswhere, but if devs sell it on their own site, they are required to match steam's price.
Only if they are selling Steam keys. Steam terms don't prevent selling other keys at a different price, or just an installer etc.
 
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Dakkon

Member
Oct 27, 2017
4,402
Are you saying that the luxury company Apple, valued at 2.7T dollars, would let the app store die if they couldn't make as much money as today?

I am so very tired of people on this forum going "Are you saying [statement that the other person didn't remotely come close to saying]" and just makes shit up. Like, stop? Engage with what I actually said? Don't put words in my mouth?

If luxury company Apple, valued at 2.7T dollars, had to lower their cut to 12%, they would get rid of both physical & digital gift cards due to gift card regulations in pretty much every first world country and stop covering high merchant surcharges that exist in some countries and pass the fees onto the consumer, moves that actively harm consumers solely.

Luxury company Apple, valued at 2.7T dollars, didn't get to that point by doing things that actively make them lose money with no potential for gain what-so-ever. If you only take a 12% cut there's literally no one out there except the dumbest businessmen on the planet that would do anything that costs you more than the 12% cut.

Even Tim Epic doesn't do it. The bar is low.

At the end of the day, the 30% cut exists for more than just raw profit, it exists both as a safety bubble for the business itself and to eat losses for things that benefit consumers, like gift cards and merchant surcharges. Even Tim Epic admis their cut is too low to do some things, which is very much admitting that there are good reasons to have a higher cut.
 

Sei

Member
Oct 28, 2017
5,818
LA
So no infinite money glitch, turns out you have to be responsible with throwing money around.
 

Tagyhag

Member
Oct 27, 2017
12,761
30% is a holdover from brick and mortar days when 30% was the industry standard for retailers, and not just video game retailers. Steam basically looked at what everyone else was charging and did the same because they were creating a digital version of that.

Indeed, what should they be charging?
 
Oct 25, 2017
2,967
Hey Era!

Y'know who isn't having money problems running a store that people like, releasing hardware to critical acclaim, running several F2P live service games, all the while maintaining an engine and doing a bunch of behind the scenes work on software thingies like proton?

csgo-dance-cs-go-dance.gif


but fr, they've both had layoffs before tho :(
 

SirKai

Member
Dec 28, 2017
7,694
Washington
The 12% store margin is so unsustainable for creating and growing an engaged audience that nearly all developers and publishers won't even sell their stuff on EGS unless they're paid to. Even successful PC games from Capcom, Namco, FromSoft, Sega, Actiblizz, EA, Amazon, Games Workshop, etc don't get ported over to EGS because, even with the higher margin they get, it's literally not even worth the inconvenience of hosting and maintaining to sell on that platform. The fact that Elden Ring, Dark Souls, Persona, Resident Evil, Street Fighter, Devil May Cry, Sekiro, Armored Core, Persona, Vermintide, New World, Lost Ark, Namco's anime titles, Diablo, Overwatch, Apex, Call of Duty, and SO many more, don't end up with EGS releases speaks volumes.
 

Alvis

Saw the truth behind the copied door
Member
Oct 25, 2017
11,297
30% is a holdover from brick and mortar days when 30% was the industry standard for retailers, and not just video game retailers. Steam basically looked at what everyone else was charging and did the same because they were creating a digital version of that.
as a consumer, I see the kind of stuff valve is funding with their 30%:
  • making linux gaming a thing
    • Linux client for Steam and all their games
    • Proton
    • Hiring the DXVK guy and telling him "just keep doing your thing"
    • Collaborating in Vulkan's development
  • Steam Deck
  • SteamVR
  • Steam Link
  • universal controller support
  • physical gift cards
  • free key generation which enables other stores to compete by selling Steam codes
  • user reviews
  • forums
  • workshop
  • custom profiles
  • gifting system
  • remote play together
  • guides...
  • I could go on but I'm getting bored of typing this post
and I see zero reason to pressure them, again, as a consumer, to lower their cut. Sure if they can magically figure it out and they don't degrade the quality of their service for consumers then cool, but right now this seems like a great situation as a consumer. And I'm a consumer, not a publisher. Who happens to want to move to Linux completely in the short term, no less. So I know which PC ecosystem I will be supporting!

Let's compare it to Epic's innovations:
  • publishers get more money!!!!!!!!!!!!!!!!!!!!!!!!
  • Fake "user reviews" that's just a super limited rating system because publishers get sad when people say mean things on their store page :(((((
  • oof your payment processor is too expensive... well we can't afford that so that charge is on you whoops
  • Fuck you, I'm pulling that game off Steam
yeahhhhhh
 
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Htown

Member
Oct 25, 2017
11,363
But Tim rightly believes platform holders should not retain a 30% tax on products that they did not develop. And I totally agree (especially for mobile stores or PC stores). 30% is too much.
As someone who remembers what the digital distribution landscape on PC looked like before Steam came along, I am never going to buy this argument.
 

LewieP

Member
Oct 26, 2017
18,206
The idea that Steam's 30% charge funds consumer-centric features, so it doesn't benefit developers is absurd.

The reason Steam has over 130 million monthly active users, collectively spending a huge amount of money on games, is because of Valve's consumer centric approach. Developer's benefit by having a massive and highly engaged audience for their games.
 

Deleted member 3208

Oct 25, 2017
11,934
Then Timmy will continue burning money to keep his shitty store afloat. And his stupid lawsuit against Apple. What an excellent businessman. Bravo.
 
Sep 22, 2019
338
Like at one turn of the head it's a consumer-focused me first type of thing and at another turn it's a damn you towards layoffs.

100% , like we lament game dev sustainability here all the time, but we are also arent willing to have another pc launcher if it meant a better developer cut.

I get steam is the greatest and we all love steam in here, but if we framed it as steam; great forums, reviews, infrastucture, investment in valve r&d, etc, VS epic but developers get more money to be more creative and innovative and less studio closures, i wonder what people would actually choose
 

Alvis

Saw the truth behind the copied door
Member
Oct 25, 2017
11,297
The idea that Steam's 30% charge funds consumer-centric features, so it doesn't benefit developers is absurd.

The reason Steam has over 130 million monthly active users, collectively spending a huge amount of money on games, is because of Valve's consumer centric approach. Developer's benefit by having a massive and highly engaged audience for their games.
also people underestimate how unbelievably funny it is that 30% of my Halo MCC purchase went towards a company that's going all in on making Linux gaming viable. Like try to convince me that's a bad thing lmao
 

Bonfires Down

Member
Nov 2, 2017
2,851
its ok for steam to be the only game in town, customers trust them and they love them. thats fine. but when they hold that market power, some pressure to keep them honest seems ok to me.
I would much prefer it if they had the Apple policy of less of a cut for smaller developers, such as indies, so they have a better chance of surviving. instead they chose to give AAA titles that make 10mil+ a cut, but I guess thats capitalism at play where theyre bigger titles that can sell outside of steam

I just want to look out for my indie bros, if apple could be bullied into a smaller cut maybe valve can too be bullied 😡
Yes, from a rational/capitalistic stance it makes sense to lower the fees just for high earning games. But on the other hand both Apple and Epic have cut or forfeited their fees specifically for low earners instead. A flat 20% cut on Steam would be good, especially since I suspect a lot of their revenue already comes from the 20% portion of sales anyway.
 

GrayMage

Member
May 2, 2022
252
The idea that Steam's 30% charge funds consumer-centric features, so it doesn't benefit developers is absurd.

The reason Steam has over 130 million monthly active users, collectively spending a huge amount of money on games, is because of Valve's consumer centric approach. Developer's benefit by having a massive and highly engaged audience for their games.

Not only that, developers also benefit by Steam developing features instead of them (steam input and remote play together being two very important ones).

Anyway, back on topic, I'm not that surprised. I've always suspected (admitedly without proof) that Fortnite hasn't been that profitable for a while. Most of the skins and stuff are collabs with big brands that couldn't have been cheap. Sure, their revenue is huge, but I wondered what cut they're giving Disney, Capcom and the others and for how long.
 
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Alvis

Saw the truth behind the copied door
Member
Oct 25, 2017
11,297
its ok for steam to be the only game in town, customers trust them and they love them. thats fine. but when they hold that market power, some pressure to keep them honest seems ok to me.
ok but like

if you were to draw a timeline of Steam's customer-centric/customer-friendly decisions/actions/whatever I guarantee you that there would be no change at all when the EGS was introduced. they simply did not react at all.

valve has been consistently customer-first before AND after the EGS (they simply have not reacted to or acknowledged EGS's existence at all which is incredibly funny), and the EGS has consistently been publisher-first

the one argument I've seen people bring up is how valve lowered their cut for successful games but that's only because they got their dates mixed up and don't realise that that happened before the EGS was introduced, not after.

i really do not see how the EGS has done ANYTHING to "keep steam honest" maybe you can elaborate lol
 

Tagyhag

Member
Oct 27, 2017
12,761
100% , like we lament game dev sustainability here all the time, but we are also arent willing to have another pc launcher if it meant a better developer cut.

I get steam is the greatest and we all love steam in here, but if we framed it as steam; great forums, reviews, infrastucture, investment in valve r&d, etc, VS epic but developers get more money to be more creative and innovative and less studio closures, i wonder what people would actually choose

If you're asking if people will choose to be pro-consumer or pro-business, most people will be pro-consumer.

As they should be.
 

Alvis

Saw the truth behind the copied door
Member
Oct 25, 2017
11,297
Not only that, developers also bbenefitby Steam developing features instead of them (steam input and remote play together being two very important ones).
yeah this is big

like if I'm an indie dev and I develop a little indie game with Xbox controller support and 2 player local (same PC) multiplayer, Valve has made it so that my game automatically supports every controller under the sun AND supports online multiplayer

the dev does nothing at all, no netcode, no server infrastructure, no nothing, and the game just magically has online play now. That's the kind of cool feature that makes people want to use Steam.
 

GameDev

Member
Aug 29, 2018
564
Indeed, what should they be charging?

The closest minimum number that can be considered an objective percentage is their cost of capital, which I can't tell you without looking at their financials and Valve isn't publicly owned.

I just wanted to point out that the 30% isn't random and was the industry standard when Steam was created.
 

eathdemon

Banned
Oct 27, 2017
9,690
Yes, from a rational/capitalistic stance it makes sense to lower the fees just for high earning games. But on the other hand both Apple and Epic have cut or forfeited their fees specifically for low earners instead. A flat 20% cut on Steam would be good, especially since I suspect a lot of their revenue already comes from the 20% portion of sales anyway.
Not only that, developers also benefit by Steam developing features instead of them (steam input and remote play together being two very important ones).

Anyway, back on topic, I'm not that surprised. I've always suspected (admitedly without proof) that Fortnite hasn't been that profitable for a while. Most of the skins and stuff are collabs with big brands that couldn't have been cheap. Sure, their revenue is huge, but I wondered what cut they're giving Disney, Capcom and the others and for how long.
steamworks alone makes the 30% cut over egs 12% cut alone. it would cost most studios more money than valve is taking to build out/host those fetures.