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.
What? That wording isn’t even relevant to the case. That’s just Valve saying they will do a review of the price changes on Steam. They set out no specific requirements (other than a minimum price of $0.99, but will try to catch errors based on their pricing recommendations). It’s similar to how Valve reviews new store pages and provides recommendations to devs on how to improve them. They do have rules against games set up for card farming scams, but that makes sense.
Wolfire’s case is about how Valve as an extremely large player is impossible to go around, so game devs have no choice but to accept their 30% fee if they want to reach most of the market out there. Valve then uses these fees to entrench this supposed monopoly position (Wolfire specifically cites the acquisition of WON back in the day, which Valve eventually shut down and merged with Steam).
Wolfire argues that a fair price is much lower than 30%, and that Valve should lower the fee and therefore have less funds to fight their competitors, creating a more competitive environment.