Selected quotes below, I'll save my bits for afterwards besides noting that I've been going back and forth as to whether this should have a thread yet.
Valve released a Steam update last week that aimed to show people more relevant games and fewer that were already popular. It claimed the changes would result in a more diverse selection of games appearing in the the Recommendation Feed and elsewhere. The impact of the changes isn't immediately obvious when looking at Steam, and some developers claim that it's having the opposite effect.
Several indie developers have noticed a drop off in wishlisting since the update and claim that it's still largely promoting popular released games over lesser known fare. Flying Oak Games' Thomas Altenburger believes it's even more focused on big games than ever before, noting that the studio's upcoming roguelike, ScourgeBringer, effectively vanished after Valve made the changes.
"The new Steam algorithm is not better, it's a catastrophe," he wrote on Twitter. "We're getting reports from many devs that their daily wishlisting dropped considerably."
Other developers have reported similar issues, both on Twitter and on Valve's blog post that detailed the update, though the latter is only visible to Steamworks partners. Some developers haven't noticed a difference at all, however, while others have actually received a boost. It's inconsistent, which makes it hard to see what impact Valve's tweaks to the algorithm have actually had.
Tweet thread starts here, if you want to get hit with the number and chart extravaganza that is indie devs trying to work these things out.
So back to my bit. I'm generally uncertain to the validity of everything so far; I think I have a general idea as to what Valve changed when it comes to Steam's algorithm, but I doubt I'll ever have 100% certainty on it. Also, any change made to any algorithm on this level will have negative/positive effects - it's simply impossible for everyone to be happy with one thing, naturally. I was going to wait for things to solidify more before making a thread, but clearly got beat to it, as sites are making articles already.
That being said, I believe Valve has changed things up slightly with regards to Steam's curation algorithm to make it more in line with other entertainment media storefronts, which is to say, prioritizing games that are
1: Already out,
and 2: Already super popular.
If this is the case, while that makes the top tier indie devs and the big publishers happy, that generally makes it a lot harder for smaller devs to break through.