Despite facing increased competition in the space, not least from the Epic Games Store, Valve’s platform is synonymous with PC gaming. The service is estimated to have made $10.8 billion in revenue during 2024, a new record for the Half-Life giant. Since it entered the PC distribution space back in 2018, the rival Epic Games Store has been making headway – and $1.09 billion last year – but Steam is still undeniably dominant within the space.
Valve earns a large part of its money from taking a 20-30% cut of sales revenue from developers and publishers. Despite other storefronts opening with lower overheads, Steam has stuck with taking this slice of sales revenue, and in doing so, it has been argued that Valve is unfairly taking a decent chunk of the profits of developers and publishers.
This might change, depending on how an ongoing class-action lawsuit initiated by Wolfire Games goes, but for the time being, Valve is making money hand over fist selling games on Steam. The platform boasts over 132 million users, so it’s perfectly reasonable that developers and publishers feel they have to use Steam – and give away a slice of their revenue – in order to reach the largest audience possible.
Steam has so many more features than any other platform.
First to market or not, that’s why steam is number one.
None of its competitors offer the community, market, discussion boards, rating system, friend system functionality and overall reliability that steam does.
It has competition, just not on PC.
Epic is atrociously bad. From hampering system performance to a total lack of any of the above features, using epic sucks.
The Xbox app is somehow seemongly always broken despite literally being developed by the platform holders and with a shit load of cash behind it.
I don’t love the idea of a steam monopoly but you gotta also give them their flowers, it’s a fantastic storefront, arguably the best when considering all gaming platforms that exist even outside of PC.
It is where it is because it was the first.
If tomorrow someone made a better Steam you’d still buy everything there because that’s where all your games are. Be honest with yourself.
If tomorrow someone made a better Steam, how many years would you have to wait to be reasonably secure that it’s not fueled by venture capital and serving as a loss leader foot-in-the-door scheme? It’s not impossible that Steam itself would enshittify and open an IPO, but the fact that the option’s been on the table for decades and Valve hasn’t taken it is better evidence than any other platform could muster. Valve has proven that it’s profitable and that it doesn’t need to care about YoY growth. Let’s overestimate their operations costs (CDN, R&D, employee salaries, hardware production, licensing, etc etc) at 5 billion a year. If they made ten billion in revenue last year and only make seven billion this year, Valve is fine. Think about that. Think about what a sixty percent drop in profits would do to literally any shareholder-backed company. It’d be apocalyptic.
That’s the main reason I’ll use Steam happily but never install another storefront on my PC. I’ll buy games on GOG or Itch as DRM-free installers, and store the installers locally, and I’ll buy and play games that distribute without a storefront launcher, but the only “storefront platform” anyone’s gonna get me to install in the next decade is Steam. If “better Steam” happens, it needs to demonstrate immunity to being bought out by Microsoft/Elon Musk for eighty morbillion dollars. And that can’t be demonstrated in a day.
That’s without any mention of actual “features” like reviews or remote play or proton or steam input or anything that actually makes Steam as a program good/bad. It’s all about the company’s refusal to go shareholder-driven. If Gabe sells Valve or his successors do, I’m off the ship and scraping the DRM off of my library. What I won’t do if that happens is go to someone else’s shareholder-value-generating storefront.
Gabe Newell is a man who, for the past decade at least, has had a big red button on his desk. This button, if pressed, will deposit eleven or twelve figures directly into his wallet to distribute however he likes, at the cost of letting some company gain control of how Valve operates. Make all his employees multimillionaires! Race Musk and Bezos for biggest number! Buy a small country! Whatever! Gabe Newell has not pressed this button, and has signaled that after his retirement or death that no successor to the company is going to be allowed to press it either. If Newell’s managed not to press it for this long, I’ll “trust” him as far as it goes. His successor hasn’t earned that trust yet, so is only coasting on “trusting Newell to pick the right guy” which isn’t guaranteed - a lot of guys would sacrifice a lot to press that button.
Valve will never IPO, why would they? They own a money printing machine that doesn’t need any more capital. They will print money until the heat death of the universe if we let it. Moreover, since they’re not a public company they don’t have to share their financials and if they did that people would be likely to sing a different tune.
I’ve never seen a conceivable scenario where anything else can happen unless Valve does something mental on purpose.
Some people here raised they concern that they don’t value Valve input to merit 30% cut and would take lower price if it meant it didn’t have features they don’t use. What’s happening now means there’s no real free market or competition.
Valve will never IPO, yes! I don’t care why. That automatically makes it better than any other launcher/storefront platform that’ll exist in my lifetime, barring one that commits to staying private, succeeds as a private company, and is content with “staying profitable” for x years. Platforms that IPO universally get worse and worse as they wring every drop of shareholder value from their users to feed the infinite growth machine. We’re having this conversation on Lemmy instead of on Reddit for presumably this reason. Platforms that have shareholders (which includes Epic and CDPR’s GOG) have a primary motive of “being more profitable than last year”. If, let’s say, Epic made ten billion dollars in profit last year but also made ten billion dollars in profit in 2020, 2021, 2022, and 2023, it’d be a failed company.
I’ll happily take the only company in the PC gaming space that’s content with one money printer over every other option that’s always thinking about how to make a second one, or reduce the ink costs, or blah blah blah. It’s just a happy coincidence that in the PC gaming space (unlike pretty much every other space), the shareholder-free thing is also the most popular, and best thing. I’d use the worse less-popular thing if that thing were the only thing free from growth capitalism.
If a game dev doesn’t value their presence on the Steam store higher than the cost of Steam’s service, they don’t list on Steam. Simple as. It’s just that a lot of dev studios consider “visible on the Steam store” to be very valuable indeed. That’s what they’re paying for, not the stuff about Steam that benefits the user (client features like Input, Workshop, Cloud, Community, etc).
Wow.
In 2025, a company that is just looking to make a shitload of money is enough to automatically “win”.
Valve: “What are you selling?” Video games, video game hardware without vendor lock-in, and in-app purchases. “Who are you selling it to?” PC gamers.
Literally everyone else in the space except for Itch, which is decidedly focused on too-indie-for-indie games and is small enough to be acquired if it ever gets popular: “What are you selling?” The promise that we’ll make more profit next year than this year. “Who are you selling it to?” Shareholders or a corp that’ll buy the whole company.
It’s an absolute no-brainer. Until anyone else can answer these questions in the same way Valve does, Valve is automatically the best player in the space. Even if another store sells games for cheaper, or has exclusives, or bans DRM, or manages to make a better storefront program, or pays developers a bigger cut. I’m not on some “good guy Gabe” circlejerk shit. There’s no morals to ascribe here. Valve makes enough money and is okay with making enough money, forever. MS, Epic, EA, Ubisoft, Nintendo, Sony, CDPR, Apple, Amazon, ActiBlizz, and every other storefront operator will be considered a failure if they don’t make “more more money than last year” every year forever. I know which platform I want to maintain a library on. I’ll happily use GOG and Itch to buy DRM-free installers though, those will outlast any enshittification the platform does in the future.
I would take a shitty store with 10% cut if it had all the games Steam does and if I could take my games with me. I don’t care for what Steam provides but I have no choice.
No, it is where it is because Valve decided it wanted to invest in it outside of it being a launcher/updater for Valve games.
And it’s not really the first. The first was probably Battle.net by Blizzard, which initially was a way to connect players (chat and join games) back in the mid-90s. It wasn’t a game sales/distribution service for many years, but it got there w/ the release of the dedicated desktop app in 2013 and had some of the core features that makes Steam special (chat and match making). In fact, I had the desktop app before I had a Steam account, which I created in ~2013 when Steam came to Linux (I switched to Linux in ~2009, and had played games on Windows for years before that). Blizzard was never interested in becoming a game distribution network, so Battle.net remained largely exclusive to Blizzard titles.
I wouldn’t have bothered w/ Steam if it didn’t provide value. I was fine managing games individually, and I bought many games from Humble Bundle and directly from devs for years before Steam became a thing. I only started preferring Steam when it provided features I couldn’t get elsewhere. These days, it provides so much value since I’m a Linux user, that I honestly don’t consider alternatives, because everything else is painful. Heroic launcher closes that gap substantially, so I’m actually considering buying more from GOG (outside of a handful of old games I can’t find elsewhere).
If another launcher provided better value vs Steam, I’d switch in a heartbeat. I use both Steam and Heroic, and I still prefer Steam because it has great features like controller mapping. But if, say, GOG supported the features I care about on the platform I use, I’d probably switch to GOG because I also care about DRM-free games. But they don’t, so I largely stick to Steam.
So Battle.net started selling third party games when? Man, think your argument through before committing to paragraphs.
Valve supports Linux just to safeguard their monopoly. They killed native ports because they pushed Proton so hard. Alyx supported Linux natively even but check now.
All of this is pointless for most of the consumers. You’re making an argument that because they care for this niche it’s worth paying 30% cut. Most people would be fine with something to download and update their games with.
It was proposed, but Blizzard rejected it:
Battle.net basically approached the same problem as Steam but from the multiplayer side, whereas Steam approached from the distribution side.
I wouldn’t put it like that. They support Linux to safeguard against Microsoft pushing their monopoly, and they did seem to be gearing up to do just that. Epic had similar concerns, hence the lawsuits against Google and Apple.
How is Linux support pointless? Having more options to play your games is a good thing! I don’t think Heroic would’ve had as much of an impact w/o Valve’s investment into Proton/WINE, and that gives customers a choice on which platform to buy and play their games on. It also allowed for the Steam OS market, and competitors are absolutely welcome to create their own spin with their own store, they just don’t for whatever reason.
Downloading and updating games, for me, is actually the least important part of what Steam offers. I care far more about Linux support (I was a Linux user before I was a Steam user), Steam Input (Steam Deck, and I prefer controller on PC), and consolidating sales to one store. Whether I need to launch it separately or whatever isn’t a big deal.
So because Battle.net failed to predict market correctly 100% of PC gamers are stuck with Steam until the end of the world. That doesn’t change the fact that Valve lucked into the position they are in and was paid billions for this already.
PC gamers aren’t “stuck with Steam,” they very much have options. And Steam is likely way better than whatever Battle.net would’ve become, so I’m quite happy with how things turned out.
And yeah, Valve was quite lucky in nailing the timing, however, that was also a very conscious choice since they filled a need they saw. Valve is perhaps the best company you could ask for to have such a dominant position, pretty much any other company would’ve resulted in a way worse situation for gamers.
PC gamers are stuck because Steam is a self-perpetuating monopoly. If your entire library is on Steam, and Steam has almost all of the games you’ll just keep on buying there for convenience (and that’s what happens, analysts estimate 90% market share). Alan Wake 2 wasn’t profitable until EGS exclusivity expired because gamers opted to wait rather than buy this gem of a game on a different platform (that gives away games like candy).
Even if you think that Valve are just the best, aren’t you worried that having one good option is being one good option away from having no good options?
Well yeah, because EGS sucks.
If you look at Steam’s competitors, none of them are really developing their feature set. So even if customers were dissatisfied w/ Steam, who is actively trying to earn their business?
Sure, I’d love it if another platform stepped up to actually compete w/ Steam.
My expectations are fairly low: it needs to work well on Linux. Heroic largely resolves that for EGS and GOG, but I’m not particularly interested in supporting a platform that only works because some community project has done the work for them. So if GOG supported Galaxy on Linux as a first class citizen, I’d probably still use Heroic, but I’d buy a lot more games from them. But as it stands, GOG is one update away from blocking access to my games through a launcher, and dealing w/ WINE/Proton directly is a pain. EGS is so far away from what I care about that I don’t think they could ever earn my business, but who knows, maybe they’ll surprise me.
But the fact that we’re even having this discussion is a testament to Steam’s success. Heroic probably wouldn’t be a thing w/o Valve’s investment into Proton/WINE, so GOG/EGS wouldn’t even be a consideration for me at all. But since that work was done, I now have more options. I’ve played some GOG and EGS games through Heroic, so it’s not even theoretical, they are realistic alternatives.
It’s important to note that at every turn, Valve has earned my trust. When games are pulled from their store, owners of those games still have access (e.g. I bought Rocket League on Steam, and when they went EGS exclusive, I still had the old version of the game). They have a solid refund policy, and they have gone out of their way to make things more pleasant for their customers. Even if they didn’t have a dominant market position, I’d probably still choose them just based on the user experience. So yeah, not having a realistic alternative isn’t great, but I don’t think it’s because of anything nefarious Valve has done, but instead lack of interest by their competitors.
Translation: agree with me or you are wrong.
Earth is round.
Off topic
Valve good, belong to tribe now, gib upvotes.
And you think others can’t argue when you lower yourself to the floor in order be angry without purpose. Smearing yourself in mud to show us just makes you a mess.
I started to use user tags to make communication more efficient, I can adjust communication to members of the Valve tribe.
Me tag you in computer. Me know you Valve simp. Me pretend me Valve tribe. You know.
huge laugh from the audience
So now you decided to be condescending because you view yourself as a superior human and deface yourself to what you think others are like? Wow. That’s awful.
Brother I already buy things on GoG lol.
Steam is great and all but ownership is far more important to me personally
Great! Not everything’s available there unfortunately. Some games release on Steam only even. So you probably are affected either way.
90% of people buy on Steam. And they do that because their entire libraries are on Steam.