Steam serves as a comprehensive library, hub for updates, and social space for PC gamers, influencing pricing structures and the survival of game genres. It revolutionized the PC gaming landscape by introducing automatic updates, a unified library, and a seamless purchasing experience. Steam has tens of millions of users online simultaneously, making its launches significant for publishers.
Steam's features include Workshop mod distribution and community engagement tools, while its Steamworks services assist developers with refunds and compatibility issues. However, this convenience limits competition, as rival storefronts struggle to match Steam's established user base and pricing.
Valve's commission structure is tiered: 30% for revenues under million, 25% for million to million, and 20% for over million. Legal battles, such as the one between Wolfire and Valve, highlight concerns about Steam's platform regulations and potential pricing restraints that inhibit competition.
Steam allows self-publishing for developers through a 0 application fee, but visibility challenges lead many to resort to discounts and updates. The platform's dominance is reinforced by policies like the "price parity" requirement, which prevents lower prices on competing storefronts. This practice may maintain Steam's commission rates and market influence, raising questions about the future of competition in PC game distribution.