A recent whitepaper from Rokky, a platform dedicated to PC game distribution, sheds light on the perceptions of industry executives regarding the dominance of Steam in the market. Conducted by Atomik Research, the survey encompassed 306 executives from game studios, with a notable 67% hailing from the United States and the remaining 33% from the United Kingdom. The findings reveal that a significant 72% of respondents believe Steam holds a monopoly over PC game distribution.
Examining the Monopoly Claim
However, the question arises: does this belief translate into an actual monopoly? As Mat Piscatella, a senior executive at Circana, and Rokky discuss in their paper titled, “The State of PC Game Distribution,” the answer is not as straightforward. While there is a compelling argument to consider Steam as an effective monopoly, the presence of alternative platforms complicates the narrative.
Rokky’s report highlights that among the surveyed executives, 48% have distributed games on the Epic Games Store and the Xbox PC Store. In contrast, only 10% have ventured onto GOG, and a mere 8% on itch.io. Other avenues for game distribution, such as e-stores and marketplaces like Humble and Fanatical, are also mentioned, yet not all respondents view these options favorably.
Interestingly, nearly a quarter of those surveyed perceive marketplaces and e-stores as part of the gray market, associating them with a loss of control and revenue. Rokky argues that this perspective may overlook potential opportunities. The report states, “Lack of clarity around what constitutes the gray market – and the mistakes that can unleash its forces – could signal a missed opportunity for many PC game developers.” The concern is that by avoiding e-stores and marketplaces due to fears of gray market implications, developers may inadvertently forfeit valuable revenue streams.
Furthermore, the report addresses the apprehension surrounding the potential for keys to fall into the hands of gray market sellers, which could lead to regional pricing manipulation. However, Rokky reassures that this fear is not necessarily justified.
Exploring Alternative Distribution Strategies
The question then becomes whether a shift towards utilizing alternative stores and e-stores could alleviate the reliance on Steam. For some developers, this may indeed be a viable path. Yet, challenges such as discoverability, the oversaturation of free-to-play games, and the rise of subscription services continue to complicate the landscape for developers striving to sell their games.
As the report concludes, “Any developer or publisher that enters the alternative distribution space will want to maintain control over distribution, pricing, and game value, always avoiding the pitfalls of the gray market.” While the journey towards new opportunities is fraught with challenges, a well-defined strategy could unlock new audiences and enhance revenue potential for developers navigating the evolving world of PC game distribution.
