I don’t understand this mentality. If we oppose monopolistic sales platforms when it’s Amazon, Google Play, or the Apple store why should we turn a blind eye when suddenly we like a particular company.
I’m not contesting that Steam offers the best user experience by a mile (it truly beats Epic and Gog by miles), but that doesn’t erase the downsides of having a single entity with a grip on the entire market.
I don’t think it’s quite as simple as “let’s crack down on steam like other monopolies” as what do you crack down on?
They do little to no anti competitive behaviour, clutching at straws would be that they require you to keep price parity on steam keys (except on sales).
All these other monopolies do lots of shady stuff to get and maintain their monopoly, so you generally want to stop them doing those things. Steam doesn’t do anything shady to maintain it’s monopoly it just carries on improving it’s platform and ironically improving the users experience and other platforms outside of their own.
Like what do you do to stop steam being so popular outside of just arbitrarily making them shitter to make the other store fronts seem ok by comparison?
The 30% cut is often something cited and maybe that could be dropped slightly, but I’m happy for them to keep taking that cut if they continue to invest some of it back into the eco system.
Look at other platforms like Sony, MS who take 30% to sell on their stores, THEN charge you like £5 a month if you want multiplayer and cloud saves etc. Steam just gives you all this as part of the same 30%.
Epic literally does anti competitive things like exclusivity and taking games they have some stake in off other store fronts or crippling their functionality.
Steam has improved how I play games, it has cloud saves, virtual controllers, streaming, game sharing, remote play together, VR support, Mod support and this is all part of their 30%, the other platforms take same and do less, or take less but barely function as a platform.
Anti monopoly is great when a company is abusing it’s position, but I don’t feel Valve is, they are just genuinely good for pc gaming and have single handily made PC gaming a mainstream platform.
They do little to no anti competitive behaviour, clutching at straws would be that they require you to keep price parity on steam keys (except on sales).
It is very much not clutching at straws to claim that. That policy is a major element of the Wolfire v. Valve case. You can also look at how despite charging a 12% platform fee, Epic Games Store does not sell games 18% cheaper.
It’s an abuse of Steam’s established market share and consumer habits to coerce publishers into not offering consumers a fair price on other platforms. It very literally stops EGS from competing on price, which is pretty much the only area where Epic can beat out Steam, since Steam otherwise is much more convenient, provides more functionality, and has more community-generated content (i.e. workshop material).
It’s hard to say that isn’t anti-competitive, especially because such a policy is only effective due to Steam’s existing market share.
Epic literally does anti competitive things like exclusivity and taking games they have some stake in off other store fronts or crippling their functionality.
Wolfire v valve was thrown out right? So they didn’t successfully prove valve were doing anything anti competition.
To my knowledge the price parity is only on steam keys sold elsewhere not for you selling a game on another storefront, happy to be shown evidence that isn’t the case.
In terms of what is a “fair deal” we could quibble about the 30% but that’s literally the only thing up for discussion right? And at the moment that’s an “industry standard” so by all means lower it if they can, I’m all for savings as a consumer, but not at the expense of the service they provide.
For example if Valve personally came to me and said “you can either have games 10% cheaper but we would have to retire X features” I would happily keep the features and forgo the discount.
Also being realistic if Valve were to drop their cut to 20% game prices wouldn’t change, the publishers would just pocket the difference, as we have seen with Epic.
Again most other mainstream platforms take 30% and while I do think they could ALL trim that down a bit, I don’t see why Valve should be the first one to cut back when they offer the most bang for buck, get Sony and MS to reduce their cut and start offering more basic features, then once the competition is ACTUALLY competing we can turn our eyes to Valve.
I think that sums up my perspective here, most storefronts are not trying to compete, they are just offering the bare minimum for same cut and then wondering why everyone wants to use the more feature rich store front… Why wouldnt you?
To my knowledge the price parity is only on steam keys sold elsewhere not for you selling a game on another storefront, happy to be shown evidence that isn’t the case.
The actual terms of the Steam Distribution Agreement are behind an NDA so we can’t publicly know for sure, but Wolfire alleges that it applies to non-key sales (see points 204, 205, 207 of the Wolfire v. Valve filing)
In terms of what is a “fair deal” we could quibble about the 30% but that’s literally the only thing up for discussion right? And at the moment that’s an “industry standard” …
Bit of a chicken and egg situation. Is Steam charging 30% because that’s standard, or is the 30% standard because Steam charges it? Epic’s attempt at 12% at the very least indicates the “industry standard” is much higher than it has to be, which is a good indicator of non-competitive behavior.
There is some slop in this argument because obviously the quality of platforms could influence this; but that is a bit moot due to the price policy preventing competitive pricing (see below).
… so by all means lower it if they can, I’m all for savings as a consumer, but not at the expense of the service they provide.
For example if Valve personally came to me and said “you can either have games 10% cheaper but we would have to retire X features” I would happily keep the features and forgo the discount.
That’s great for you, but I’m sure we could find plenty of consumers who would make that trade. The choice should be available to them.
Also being realistic if Valve were to drop their cut to 20% game prices wouldn’t change, the publishers would just pocket the difference, as we have seen with Epic.
You can’t point to current publisher behavior on EGS, because their behavior at present is influenced by Valve’s price policy (called the “Platform Most Favored Nation” or “PMFN” clause in the court filing) which is the foundation of the anti-competitive case against Valve.
Re: concerns about publishers eating the difference. An ideal greedy publisher would drop the price on Epic by some amount in the middle—cheap enough to convince consumers to buy on Epic instead of Steam (since it yields more revenue to them) without making it too cheap that the difference in profit between a sale on Epic and a sale on Steam goes to 0.
This is how competition between platforms should work. It drives down the cost by some amount, but the publisher isn’t going to pass up the chance to profit where they can.
Again most other mainstream platforms take 30% and while I do think they could ALL trim that down a bit, I don’t see why Valve should be the first one to cut back when they offer the most bang for buck, get Sony and MS to reduce their cut and start offering more basic features, then once the competition is ACTUALLY competing we can turn our eyes to Valve.
I think that sums up my perspective here, most storefronts are not trying to compete, they are just offering the bare minimum for same cut and then wondering why everyone wants to use the more feature rich store front… Why wouldnt you?
I’m confused by your response here since this is addressed in my prior comment. Is there something not quite clear enough?
Steam clearly wins on features, the only metric to beat them on is price. Epic is trying to do so, but publishers are not actually lowering the cost on their platform because of Valve’s policies—policies which are only effective because a publisher cannot afford to be delisted from Steam due its large market share.
There is too much to respond to all, will be interesting to see how the wolfire case continues then.
I just wanted to chime in on the last bit.
So as you say steam wins on features, and Epic and MS have both chosen not to compete on features. It’s not that they can’t, they both have the means and money to do so, they just don’t want to invest the money on the infrastructure incase it’s a big flop I guess.
Either way you are making out like the only valid perspective here is focusing on the game price, but as I said to me the feature set is VERY important. Literally the only reason I use steam over other platforms is the features, being able to use any controller and remap it to however I want. Knowing my saves can be transfered to any computer, streaming to the TV so the kids can play games on it etc.
I appreciate not everyone else uses these features, but some of us do, and this is why steam is the better platform. If MS let me stream games to my TV and use controllers properly etc I would happily get game pass, but their platform is rubbish, same for EGS.
This whole thing is just crap platforms complaining they can’t compete when they havent even tried, they just want the free publicity in the hope they can get more users “in the door”.
Steam Key Price Parity Provision. Valve nominally allows game publishers to make some limited third-party sales of Steam-enabled games through its “Steam Keys” program. Steam Keys are alphanumeric codes that can be submitted to the Steam Gaming Platform by gamers to access a digital copy of the purchased game within the Steam Gaming Platform, even when the game is not purchased through the Steam Store. Steam Keys can be sold by rival distributors including the Humble Store, Amazon, GameStop, and Green Man Gaming.
But Valve has rigged the Steam Keys program so that it serves as a tool to maintain Valve’s dominance. Among other things, Valve imposes a price parity rule (the “Steam Key PriceParity Provision”) on anyone wanting to sell Steam Keys through an alternative distributor. Put explicitly by Valve, “We want to avoid a situation where customers get a worse offer on the Steam store.” But that is equivalent to preventing gamers from obtaining a better offer from a competing distributor. The effect of this rule is to stifle price competition.
Because of this rule, Valve can stop competing game stores from offering
consumers a lower price on Steam-enabled games in order to shift volume from the Steam Store to
their storefronts. Even if a rival game store were to charge game publishers a lower commission
than Valve’s high 30% fee, the distributor would not gain more sales because the game publishers
could not charge a lower price in its store. Game publishers and consumers suffer because this
rule keeps Valve’s high 30% commission from being subject to competitive pressure.
This Price Parity Provision is one of the reasons why Valve has been able to
continue to charge an inflated 30% commission for many years, even as that commission is plainly
above the levels that would prevail in a competitive market. Competition would normally force
such an inflated commission to come down to competitive levels—but Valve’s restraints prevent
those competitive forces from operating as they would in a free market.
Because of Valve’s restraint, publishers cannot utilize alternative distributors to
avoid the 30% tax that Valve has set for the market. Thus, they reluctantly market their games
primarily through the dominant Steam Store where Valve takes its 30% fee. While several
distributors have tried to compete with Valve by charging lower commissions on Steam Keys,
those efforts have largely failed to make a dent in the Steam Store’s market share because
publishers using those distributors had to charge the same inflated prices they set on the Steam
Store.
Moreover, even if a game publisher wanted to scale up its use of Steam Keys to
promote competition, Valve has made it clear that it would shut down such efforts. When Valve
recognizes that a game publisher is selling a significant volume of Steam Keys relative to its
Steam Store sales, Valve can, at its own discretion, threaten the game publisher and refuse to
provide more Steam Keys. Thus, Valve uses the Steam Key program as another tool to ensure that
the vast majority of sales take place on the Steam Store, where Valve gets its 30% commission on
nearly every sale.
So if you want to sell steam keys, you need to offer a similar deal on steam as you would wherever you’re selling those steam keys. This doesn’t apply to other storefronts like GOG, Epic, the Ubisoft store, the EA store or the Windows store, this is only about selling steam keys. So if you want to avoid giving Valve a cut of the sale while still using their platform to distribute your game, Valve is going to get upset and take action to prevent you from doing that.
There is also a section about
Price Veto Provision. Valve also requires game publishers to agree to give Valve
veto power over their pricing in the Steam Store and across the market generally (the “Price Veto
Provision”). Valve selectively enforces this provision to review pricing by game publishers on PC
Desktop Games that have nothing to do with the Steam Gaming Platform at all. Through this
conduct, prices set in the Steam Store serve as a benchmark that leads to inflated prices for
virtually all PC Desktop Games.
which I think was the focus of a different lawsuit that mostly talked about a Most Favored Nation clause. This one is a little more complicated, but this lawsuit ended up getting dismissed. I’m not even close to being a lawyer so I don’t know why exactly, but this video seems to make a pretty good argument for why this isn’t a good legal argument. To summarize: there isn’t actually any proof that this kind of clause is actually anti-competitive and violates anti-trust laws. There’s also no telling whether or not other storefronts have similar conditions in place, because apparently these kind of Most Favored Nation clauses are fairly standard in some industries.
Also being realistic if Valve were to drop their cut to 20% game prices wouldn’t change, the publishers would just pocket the difference, as we have seen with Epic.
You can’t point to current publisher behavior on EGS, because their behavior at present is influenced by Valve’s price policy (called the “Platform Most Favored Nation” or “PMFN” clause in the court filing) which is the foundation of the anti-competitive case against Valve.
Looking at your other comment, I can say that Ubisoft tried ditching steam, but their prices didn’t really change even though they were paying a lower commission to epic than they would have to valve. So they would have had the ability change their prices to whatever they wanted on the epic store without fear of valve vetoing the price, because those games weren’t being sold on steam.
Steam clearly wins on features, the only metric to beat them on is price. Epic is trying to do so, but publishers are not actually lowering the cost on their platform because of Valve’s policies—policies which are only effective because a publisher cannot afford to be delisted from Steam due its large market share.
Is there any actual proof of this? Epic is well known for giving games away for free, the best price customers can hope for. Yet they still can’t seem to retain a loyal customer base. Maybe the price isn’t the most important factor for a digital distribution platform.
Yeah, to be honest that portion of the Wolfire case is pretty weak in my opinion. The Wolfire case isn’t only about steam keys, though, it also alleges that the PMFN clause applies to all game listings outside of Steam.
I’m not even close to being a lawyer so I don’t know why exactly, but this video seems to make a pretty good argument for why this isn’t a good legal argument.
I watch the timestamp provided. The video appears to me to suggest that it is a well-founded legal complaint given you can establish the MFN is the cause of the lack of differentiated pricing. The commentator seems to dismiss the idea that such an effect is evident in the information provided, and seems wishy-washy on a lot of his claims about economic principles. I’ll take his word on the legal front, but for the economic side I will turn to the plethora of academic and legal publications on the effects of MFN clauses (which support the anti-competitive effects alleged by the filing).
There’s also no telling whether or not other storefronts have similar conditions in place, because apparently these kind of Most Favored Nation clauses are fairly standard in some industries.
Looking at your other comment, I can say that Ubisoft tried ditching steam, but their prices didn’t really change even though they were paying a lower commission to epic than they would have to valve. So they would have had the ability change their prices to whatever they wanted on the epic store without fear of valve vetoing the price, because those games weren’t being sold on steam.
This is interesting, I was unaware. I’ll have to look into it.
Not to be nitpicky (because this might be solid counter-evidence), but do we know that in a universe without the Steam MFN policy Ubisoft wouldn’t have listed the games concurrently on Steam for 18% higher?
Is there any actual proof of this? Epic is well known for giving games away for free, the best price customers can hope for. Yet they still can’t seem to retain a loyal customer base. Maybe the price isn’t the most important factor for a digital distribution platform.
Strikes me as a little beside the point. A randomly rolled free game once a week is almost nothing compared to the sea of purchases in the game industry. If I want to buy game XYZ, the free weekly does me no good—at most, it gets me to install Epic (which is what they want). But it isn’t going to change the fact that Steam gives more bang for the buck, all else equal.
The fact remains, that Steam is preventing games from being listed for less on Epic. So if price isn’t the most important factor, why does Steam feel the need to impose such a policy?
Not to be nitpicky (because this might be solid counter-evidence), but do we know that in a universe without the Steam MFN policy Ubisoft wouldn’t have listed the games concurrently on Steam for 18% higher?
We can go back and look at the historical prices for The Division 2 and see that Ubisoft didn’t have a lower baseline price on their own store compared to the epic store. So either Epic has an MFN policy as well, or Ubisoft would most likely want to keep their prices consistent across platforms and stores.
Strikes me as a little beside the point. A randomly rolled free game once a week isn’t going to change anyone’s purchasing habits or change the landscape of the marketplace. If I want to buy game XYZ, the free weekly does me no good—at most, it gets me to install Epic (which is what they want). But it isn’t going to change the fact that Steam gives more bang for the buck, all else equal.
That’s the thing: you’re being given a random game every week and that’s still not enough to get people to stick around. The games they’re giving away are often pretty good too, and yet it’s not enough to convince people that the Epic Games Store is worth using. And looking at the store now, it seems they’re just giving back 5% of the money you spend, meaning if you opt into their ecosystem, all their games actually are cheaper. At some point you need to admit that people won’t abandon steam just because prices are lower somewhere else. Because the alternative would mean that piracy would be everyone’s preferred method of getting games.
The fact remains, that Steam is preventing games from being listed for less on Epic. So if price isn’t the most important factor, why does Steam feel the need to impose such a policy?
We also don’t really know that they do. The source saying that the MFN policy exists at all is the CEO of Epic Games saying so on twitter. And I’m pretty sure the lawsuit says that it’s “selectively enforced”, so there aren’t any actual examples of Valve vetoing a game’s price based on the price in another store.
We can go back and look at the historical prices for The Division 2 and see that Ubisoft didn’t have a lower baseline price on their own store compared to the epic store. So either Epic has an MFN policy as well, or Ubisoft would most likely want to keep their prices consistent across platforms and stores.
Thanks for digging that up, interesting to note. Epic might have an MFN, or maybe Ubisoft’s internal publishing overhead is roughly 12%.
That’s the thing: you’re being given a random game every week and that’s still not enough to get people to stick around
I don’t know what you envision when you say “stick around”. Do people uninstall Steam when they install Epic? No, they don’t. You just have both installed. The free game gimmic is for you to download the platform; that’s the first hurdle, but it does little to change your preference between platforms when it comes time to make a purchase.
And looking at the store now, it seems they’re just giving back 5% of the money you spend, meaning if you opt into their ecosystem, all their games actually are cheaper.
Interesting point on the 5%, I was unaware of that.
We also don’t really know that they do. The source saying that the MFN policy exists at all is the CEO of Epic Games saying so on twitter. And I’m pretty sure the lawsuit says that it’s “selectively enforced”, so there aren’t any actual examples of Valve vetoing a game’s price based on the price in another store.
What evidence would be needed to convince you?
Clearly, there is a business case for listing a game for less on Epic (or a publisher’s own site!). We can trust the MFN policy most likely exists. What other explanation for the observed behavior can be put forth?
“Selectively enforced” is the wording used by Valve’s own employee. That could mean anything from “only big, noteable games” to “only enforced when we noticed it” to “actually enforced consistently”. Regardless, it can have a chilling effect that causes everyone to step in line.
I don’t know what you envision when you say “stick around”.
I would expect people to start buying games from the epic games store. They’d be using it regularly and have a sense of ownership over the games they have in their libraries.
What evidence would be needed to convince you?
Honestly, I’m mostly just being pedantic. I’m perfectly willing to believe this kind of clause exists, but I want to acknowledge that at least for now there’s no actual evidence of it.
What other explanation for the observed behavior can be put forth?
For games being the same price on different store fronts? Whatever the justification for selling digital games at the same price as physical games was back when digital purchases were becoming mainstream, or for the same reason that Nintendo games will rarely go on sale: because there are still people willing to pay.
“Selectively enforced” is the wording used by Valve’s own employee.
Is it? Because I pulled the term from the complaint filed Apr 27, 2021 under the Price Veto Provision section. Where did you see a valve employee saying it?
Other people are making good counter arguments, so I’m just going to address one bit:
You can also look at how despite charging a 12% platform fee, Epic Games Store does not sell games 18% cheaper.
Epic hasn’t been running their game store for very long, and they’ve been operating it at a loss to secure market share. They lose hundreds of millions of dollars a year on their store. This is mostly due to them buying exclusive rights to games, but my point is that the EGS is not a successful, self sustaining business. Epic taking a 12% cut doesn’t mean that 12% is enough money, because their whole business model is about losing money to attract users.
You also have to remember that the storefront cut is an upfront cost with an unclear long-term cost. Valve is promising to always host the game and cover the bandwidth for every future download and update, no matter how many updates or how many times someone downloads it. Not to mention that they also will host mods, provide matchmaking, video streaming, and many other benefits.
It’s also not about whether 30% is the right number or not. It’s about how Valve has made it impossible to choose a different number at all.
The argument has little to nothing to do with Epic’s business strategy—it’s 12%, along with the 30% of Steam, is merely a feature of the landscape in which publishers operate. Whether 12% is sustainable for the platform long-term or not, Valve is coercing the market so that publishers cannot take advantage of it.
I think the whole “monopoly bad” notion is a bit off. You start opposing monopolies, but then people realized that duopolies are also bad, and next thing you know we talk about triopolies and centiopolies and whatnot.
So I think the actual number is not the thing that matters, and instead the thing we should be worrying about is cartels.
The defining feature of a cartel is the ruthless action it takes to kill competition. The monopolies everyone are so mad about are cartels of single companies, but the bad thing about them is their cartellic behavior - not the fact they are along in the market.
That’s like being okay with a dictator because they’re a benevolent dictator. Even if things are good in that moment, you’re bound for enshittification when that person is no longer in power, a la the fears of the OP.
More like a democracy with no term limits and a leader with 90+% popularity rate.
Sure, steam looks powerful, as if they can do whatever they want. But you have to look at why steam is so powerful, it’s because people like steam. If steam uses that power for anticompetitive behavior, people will stop liking steam and it will lose a lot of power.
Just like if the leader does something that the people don’t like, suddenly the approval rating is no longer at 90+% and he loses the next election.
My argument is that instead of attacking Valve for being big, you should attack them for doing bad things. Your “other comment in this thread” (I assume https://lemmy.world/comment/10668748 ?) describes an aggressive practice done by Valve. Why not lead with that? The problem is not the size of these companies per se, but the way they’ve reached that size and the way they weaponize it against competitors. Focusing on attacking the size and the monopoly status of the companies is just saying “it’s not okay to be successful”.
Everybody would love 2 or 3 more good healthy alternative to even the playing field. Because having the future of fun hang by the tread of a single not-corrupt-to-the-core company is fucking stressfull. But dunking on valve is not the way to a healthy gaming marketplace.
I will continue dunking on Valve as long as they remain the reason good, healthy alternatives can’t exist. I will not re-hash the whole arguments here, please see my other replies in this thread.
I have read your arguments, I just fundamentaly disagree. I do not want to lower the ceiling until valve is as crappy as the rest. I want the floor to rise.
Basically valve do not stop other companies from competing. Nothing is stopping EGS from including and contributing to proton. allowing and even helping developers to have their games on multiple marketplaces. Building awesome services to provide to developers.
Is it a shitty businiss practice? Absolutly. Should valve as the only company allow others to under cut them? No that would be insane. Should it be regulated as illegal businiss practices for everyone - yes absolutly.
Steam isn’t a monopoly, I can get my games elsewhere (epic, gog, humble store, origin etc). But Steam is dominating the market because it does it better. It offers value and features that others don’t, and it generally hasn’t abused its dominant market position to squeeze the consumer or crush their competitors. The closest thing to enshittification we’ve seen from Steam was them allowing third party DRM and launchers, which isn’t something they wanted, it’s them backing down from a stand-off.
I want competition, but there’s good competition and bad competition. Good competition is what we see from Steam and gog, where they stand out by being good at what they do and giving customers what they want.
For an example of bad competition, just look at streaming sites. We went from everything being on Netflix to everything being divided among dozens of shitty platforms, each of which costs more, and the prices keep going up, especially if you don’t want ads. Nothing was improved for the consumer when Netflix lost its defacto monopoly. Which isn’t to say that Netflix is great, only that the competition for marketshare has only made things worse for the consumer.
I think it’s easy to look at all the bullshit EA and Ubisoft and the like pull now, and imagine that same pattern from streaming playing out in gaming.
For an example of bad competition, just look at streaming sites. We went from everything being on Netflix to everything being divided among dozens of shitty platforms, each of which costs more, and the prices keep going up, especially if you don’t want ads. Nothing was improved for the consumer when Netflix lost its defacto monopoly. Which isn’t to say that Netflix is great, only that the competition for marketshare has only made things worse for the consumer.
Not to sound like a ancap idiot or whatever, but I’d imagine that has to do with the fact that streaming services don’t actually compete with one another. Exclusivity deals mean they don’t actually compete in terms of user experience, features, ease of use, higher video or audio quality than their competition, improved bitrate, whatever. Instead, they just compete based on who can snap up what IPs for the cheapest, which is just a game of whoever has the most money, whoever can outbid their competitors. Then, you’re not going to netflix or hulu or disney+ because of the features of the platform, you’re going to them because they have some IP that the other platforms just straight up don’t, and if you want to watch both IPs you gotta pay for both. So, it’s not really competition, in the conventional sense.
Tbf monopolies are sometimes unavoidable. Like the water company or the energy company (at least the ones that actually own the cables). Usually natural monopolies are nationalized though.
Even if steam is not a natural Monopoly, competition is possible, we allow it to be a monopoly because we like it, not the other way around. There are plenty of digital stores, you can at any time buy almost any game from an alternative, I’m not aware of steam having any exclusivity agreement with any game (except the ones that valve made).
Valve also doesn’t use shopping platform monopoly methods such as artificially making process low by selling at a loss, which is the main problem with other monopolies like Amazon.
It also doesn’t bundle 100 unnecessary services to the subscription. It doesn’t even have a subscription.
Sure, you can’t move your steam games to another platform, but you can get new ones. It’s not much of a problem having games from different platforms anyway, GoG for example even let’s you launch steam games from the GoG launcher. And you can always go back to good old shortcuts on a folder.
The moment steam starts enshittifing, it will be very easy to switch to another platform. Compared with other platforms, like any social media or YouTube.
Valve also doesn’t use shopping platform monopoly methods such as artificially making process low by selling at a loss, which is the main problem with other monopolies like Amazon.
That isn’t the only method. There is also the “[Platform] Most Favored Nation” clause, which eliminates the ability to undercut the platform elsewhere. This allows the platform to leverage it’s market share and benefits to maintain dominance, raising the price floor of the market so nobody can compete on cost. Being the dominant platform, with better economies of scale and consumer intertia, this gives them an advantage in that competing platforms have a difficult time being the better choice.
Valve uses a PMFN clause. See my other comments for links to relevant court cases.
The moment steam starts enshittifing, it will be very easy to switch to another platform. Compared with other platforms, like any social media or YouTube.
Being familiar with “enshitify”, you should go read more of Cory Doctorow’s (who coined the term) writing over on pluralistic.net. He writes frequently about monopolies (his writing on Amazon’s monopolistic practices (skip to the part about high fees and raising prices) are applicable to Valve’s PMFN clause). He also has explicitly given social media platforms as examples of platforms prone to enshitification because of the high network effects.
Steam/Valve is pretty much one of the only companies I actually am perfectly willing to let be a monopoly as they currently stand. Especially since they have come a long ways towards making gaming so much more accessible to Linux users, like me, who don’t know how to take full advantage of wine.
Dehumanizing people who recognize the power of overwhelming market share is a lot worse than pointing out the power of overwhelming market share.
Folks will shit on Alan Wake II for only releasing on EGS, like that’s obviously the only reason it’s not selling well… and then refuse to consider the implications of that claim. I have led people by the nose through what it means when there’s only one store that really matters, and developers are generally screwed if they can’t or won’t sell through that one store.
And that one “old fat guy” is constantly under attack from degenerates because “sTeAm mOnoPoLy”.
I don’t understand this mentality. If we oppose monopolistic sales platforms when it’s Amazon, Google Play, or the Apple store why should we turn a blind eye when suddenly we like a particular company.
I’m not contesting that Steam offers the best user experience by a mile (it truly beats Epic and Gog by miles), but that doesn’t erase the downsides of having a single entity with a grip on the entire market.
I don’t think it’s quite as simple as “let’s crack down on steam like other monopolies” as what do you crack down on?
They do little to no anti competitive behaviour, clutching at straws would be that they require you to keep price parity on steam keys (except on sales).
All these other monopolies do lots of shady stuff to get and maintain their monopoly, so you generally want to stop them doing those things. Steam doesn’t do anything shady to maintain it’s monopoly it just carries on improving it’s platform and ironically improving the users experience and other platforms outside of their own.
Like what do you do to stop steam being so popular outside of just arbitrarily making them shitter to make the other store fronts seem ok by comparison?
The 30% cut is often something cited and maybe that could be dropped slightly, but I’m happy for them to keep taking that cut if they continue to invest some of it back into the eco system.
Look at other platforms like Sony, MS who take 30% to sell on their stores, THEN charge you like £5 a month if you want multiplayer and cloud saves etc. Steam just gives you all this as part of the same 30%.
Epic literally does anti competitive things like exclusivity and taking games they have some stake in off other store fronts or crippling their functionality.
Steam has improved how I play games, it has cloud saves, virtual controllers, streaming, game sharing, remote play together, VR support, Mod support and this is all part of their 30%, the other platforms take same and do less, or take less but barely function as a platform.
Anti monopoly is great when a company is abusing it’s position, but I don’t feel Valve is, they are just genuinely good for pc gaming and have single handily made PC gaming a mainstream platform.
It is very much not clutching at straws to claim that. That policy is a major element of the Wolfire v. Valve case. You can also look at how despite charging a 12% platform fee, Epic Games Store does not sell games 18% cheaper.
It’s an abuse of Steam’s established market share and consumer habits to coerce publishers into not offering consumers a fair price on other platforms. It very literally stops EGS from competing on price, which is pretty much the only area where Epic can beat out Steam, since Steam otherwise is much more convenient, provides more functionality, and has more community-generated content (i.e. workshop material).
It’s hard to say that isn’t anti-competitive, especially because such a policy is only effective due to Steam’s existing market share.
This is a fair complaint against Epic, I agree.
Wolfire v valve was thrown out right? So they didn’t successfully prove valve were doing anything anti competition.
To my knowledge the price parity is only on steam keys sold elsewhere not for you selling a game on another storefront, happy to be shown evidence that isn’t the case.
In terms of what is a “fair deal” we could quibble about the 30% but that’s literally the only thing up for discussion right? And at the moment that’s an “industry standard” so by all means lower it if they can, I’m all for savings as a consumer, but not at the expense of the service they provide.
For example if Valve personally came to me and said “you can either have games 10% cheaper but we would have to retire X features” I would happily keep the features and forgo the discount.
Also being realistic if Valve were to drop their cut to 20% game prices wouldn’t change, the publishers would just pocket the difference, as we have seen with Epic.
Again most other mainstream platforms take 30% and while I do think they could ALL trim that down a bit, I don’t see why Valve should be the first one to cut back when they offer the most bang for buck, get Sony and MS to reduce their cut and start offering more basic features, then once the competition is ACTUALLY competing we can turn our eyes to Valve.
I think that sums up my perspective here, most storefronts are not trying to compete, they are just offering the bare minimum for same cut and then wondering why everyone wants to use the more feature rich store front… Why wouldnt you?
Oh wow, lots to unpack here. Bear with me.
AFAIK still ongoing, looks like most recent filings were on 06/12.
The actual terms of the Steam Distribution Agreement are behind an NDA so we can’t publicly know for sure, but Wolfire alleges that it applies to non-key sales (see points 204, 205, 207 of the Wolfire v. Valve filing)
Bit of a chicken and egg situation. Is Steam charging 30% because that’s standard, or is the 30% standard because Steam charges it? Epic’s attempt at 12% at the very least indicates the “industry standard” is much higher than it has to be, which is a good indicator of non-competitive behavior.
There is some slop in this argument because obviously the quality of platforms could influence this; but that is a bit moot due to the price policy preventing competitive pricing (see below).
That’s great for you, but I’m sure we could find plenty of consumers who would make that trade. The choice should be available to them.
You can’t point to current publisher behavior on EGS, because their behavior at present is influenced by Valve’s price policy (called the “Platform Most Favored Nation” or “PMFN” clause in the court filing) which is the foundation of the anti-competitive case against Valve.
Re: concerns about publishers eating the difference. An ideal greedy publisher would drop the price on Epic by some amount in the middle—cheap enough to convince consumers to buy on Epic instead of Steam (since it yields more revenue to them) without making it too cheap that the difference in profit between a sale on Epic and a sale on Steam goes to 0.
This is how competition between platforms should work. It drives down the cost by some amount, but the publisher isn’t going to pass up the chance to profit where they can.
I’m confused by your response here since this is addressed in my prior comment. Is there something not quite clear enough?
Steam clearly wins on features, the only metric to beat them on is price. Epic is trying to do so, but publishers are not actually lowering the cost on their platform because of Valve’s policies—policies which are only effective because a publisher cannot afford to be delisted from Steam due its large market share.
There is too much to respond to all, will be interesting to see how the wolfire case continues then.
I just wanted to chime in on the last bit.
So as you say steam wins on features, and Epic and MS have both chosen not to compete on features. It’s not that they can’t, they both have the means and money to do so, they just don’t want to invest the money on the infrastructure incase it’s a big flop I guess.
Either way you are making out like the only valid perspective here is focusing on the game price, but as I said to me the feature set is VERY important. Literally the only reason I use steam over other platforms is the features, being able to use any controller and remap it to however I want. Knowing my saves can be transfered to any computer, streaming to the TV so the kids can play games on it etc.
I appreciate not everyone else uses these features, but some of us do, and this is why steam is the better platform. If MS let me stream games to my TV and use controllers properly etc I would happily get game pass, but their platform is rubbish, same for EGS.
This whole thing is just crap platforms complaining they can’t compete when they havent even tried, they just want the free publicity in the hope they can get more users “in the door”.
Sure, let’s look at that lawsuit.
So if you want to sell steam keys, you need to offer a similar deal on steam as you would wherever you’re selling those steam keys. This doesn’t apply to other storefronts like GOG, Epic, the Ubisoft store, the EA store or the Windows store, this is only about selling steam keys. So if you want to avoid giving Valve a cut of the sale while still using their platform to distribute your game, Valve is going to get upset and take action to prevent you from doing that.
There is also a section about
which I think was the focus of a different lawsuit that mostly talked about a Most Favored Nation clause. This one is a little more complicated, but this lawsuit ended up getting dismissed. I’m not even close to being a lawyer so I don’t know why exactly, but this video seems to make a pretty good argument for why this isn’t a good legal argument. To summarize: there isn’t actually any proof that this kind of clause is actually anti-competitive and violates anti-trust laws. There’s also no telling whether or not other storefronts have similar conditions in place, because apparently these kind of Most Favored Nation clauses are fairly standard in some industries.
Looking at your other comment, I can say that Ubisoft tried ditching steam, but their prices didn’t really change even though they were paying a lower commission to epic than they would have to valve. So they would have had the ability change their prices to whatever they wanted on the epic store without fear of valve vetoing the price, because those games weren’t being sold on steam.
Is there any actual proof of this? Epic is well known for giving games away for free, the best price customers can hope for. Yet they still can’t seem to retain a loyal customer base. Maybe the price isn’t the most important factor for a digital distribution platform.
Yeah, to be honest that portion of the Wolfire case is pretty weak in my opinion. The Wolfire case isn’t only about steam keys, though, it also alleges that the PMFN clause applies to all game listings outside of Steam.
I watch the timestamp provided. The video appears to me to suggest that it is a well-founded legal complaint given you can establish the MFN is the cause of the lack of differentiated pricing. The commentator seems to dismiss the idea that such an effect is evident in the information provided, and seems wishy-washy on a lot of his claims about economic principles. I’ll take his word on the legal front, but for the economic side I will turn to the plethora of academic and legal publications on the effects of MFN clauses (which support the anti-competitive effects alleged by the filing).
Also it looks like the Colvin wasn’t dismissed, it was consolidated into the Wolfire class-action.
Yep, and the MFN is also a point in the monopoly proceedings against Amazon.
This is interesting, I was unaware. I’ll have to look into it.
Not to be nitpicky (because this might be solid counter-evidence), but do we know that in a universe without the Steam MFN policy Ubisoft wouldn’t have listed the games concurrently on Steam for 18% higher?
Strikes me as a little beside the point. A randomly rolled free game once a week is almost nothing compared to the sea of purchases in the game industry. If I want to buy game XYZ, the free weekly does me no good—at most, it gets me to install Epic (which is what they want). But it isn’t going to change the fact that Steam gives more bang for the buck, all else equal.
The fact remains, that Steam is preventing games from being listed for less on Epic. So if price isn’t the most important factor, why does Steam feel the need to impose such a policy?
We can go back and look at the historical prices for The Division 2 and see that Ubisoft didn’t have a lower baseline price on their own store compared to the epic store. So either Epic has an MFN policy as well, or Ubisoft would most likely want to keep their prices consistent across platforms and stores.
That’s the thing: you’re being given a random game every week and that’s still not enough to get people to stick around. The games they’re giving away are often pretty good too, and yet it’s not enough to convince people that the Epic Games Store is worth using. And looking at the store now, it seems they’re just giving back 5% of the money you spend, meaning if you opt into their ecosystem, all their games actually are cheaper. At some point you need to admit that people won’t abandon steam just because prices are lower somewhere else. Because the alternative would mean that piracy would be everyone’s preferred method of getting games.
We also don’t really know that they do. The source saying that the MFN policy exists at all is the CEO of Epic Games saying so on twitter. And I’m pretty sure the lawsuit says that it’s “selectively enforced”, so there aren’t any actual examples of Valve vetoing a game’s price based on the price in another store.
Thanks for digging that up, interesting to note. Epic might have an MFN, or maybe Ubisoft’s internal publishing overhead is roughly 12%.
I don’t know what you envision when you say “stick around”. Do people uninstall Steam when they install Epic? No, they don’t. You just have both installed. The free game gimmic is for you to download the platform; that’s the first hurdle, but it does little to change your preference between platforms when it comes time to make a purchase.
Interesting point on the 5%, I was unaware of that.
What evidence would be needed to convince you?
Clearly, there is a business case for listing a game for less on Epic (or a publisher’s own site!). We can trust the MFN policy most likely exists. What other explanation for the observed behavior can be put forth?
“Selectively enforced” is the wording used by Valve’s own employee. That could mean anything from “only big, noteable games” to “only enforced when we noticed it” to “actually enforced consistently”. Regardless, it can have a chilling effect that causes everyone to step in line.
I would expect people to start buying games from the epic games store. They’d be using it regularly and have a sense of ownership over the games they have in their libraries.
Honestly, I’m mostly just being pedantic. I’m perfectly willing to believe this kind of clause exists, but I want to acknowledge that at least for now there’s no actual evidence of it.
For games being the same price on different store fronts? Whatever the justification for selling digital games at the same price as physical games was back when digital purchases were becoming mainstream, or for the same reason that Nintendo games will rarely go on sale: because there are still people willing to pay.
Is it? Because I pulled the term from the complaint filed Apr 27, 2021 under the Price Veto Provision section. Where did you see a valve employee saying it?
For that fact to “remain,” it would need to have been established in the first place. At best it’s been alleged.
Other people are making good counter arguments, so I’m just going to address one bit:
Epic hasn’t been running their game store for very long, and they’ve been operating it at a loss to secure market share. They lose hundreds of millions of dollars a year on their store. This is mostly due to them buying exclusive rights to games, but my point is that the EGS is not a successful, self sustaining business. Epic taking a 12% cut doesn’t mean that 12% is enough money, because their whole business model is about losing money to attract users.
You also have to remember that the storefront cut is an upfront cost with an unclear long-term cost. Valve is promising to always host the game and cover the bandwidth for every future download and update, no matter how many updates or how many times someone downloads it. Not to mention that they also will host mods, provide matchmaking, video streaming, and many other benefits.
It’s also not about whether 30% is the right number or not. It’s about how Valve has made it impossible to choose a different number at all.
The argument has little to nothing to do with Epic’s business strategy—it’s 12%, along with the 30% of Steam, is merely a feature of the landscape in which publishers operate. Whether 12% is sustainable for the platform long-term or not, Valve is coercing the market so that publishers cannot take advantage of it.
I think the whole “monopoly bad” notion is a bit off. You start opposing monopolies, but then people realized that duopolies are also bad, and next thing you know we talk about triopolies and centiopolies and whatnot.
So I think the actual number is not the thing that matters, and instead the thing we should be worrying about is cartels.
The defining feature of a cartel is the ruthless action it takes to kill competition. The monopolies everyone are so mad about are cartels of single companies, but the bad thing about them is their cartellic behavior - not the fact they are along in the market.
Steam is not a cartel.
That’s like being okay with a dictator because they’re a benevolent dictator. Even if things are good in that moment, you’re bound for enshittification when that person is no longer in power, a la the fears of the OP.
More like a democracy with no term limits and a leader with 90+% popularity rate.
Sure, steam looks powerful, as if they can do whatever they want. But you have to look at why steam is so powerful, it’s because people like steam. If steam uses that power for anticompetitive behavior, people will stop liking steam and it will lose a lot of power.
Just like if the leader does something that the people don’t like, suddenly the approval rating is no longer at 90+% and he loses the next election.
Oh so its ok because they haven’t exercised their power in a way you don’t like yet. Makes perfect sense.
Yes. The subtle distinction between having physically fit legs capable of kicking babies and actually kicking babies.
This would be a good metaphor if there was a massive financial incentive to kick babies.
Maybe not financial, but intrusive thoughts are a thing…
A nice word choice.
I’m going to use it this way next time.
See my other comment in this thread. Steam does exhibit what you call “cartellic behavior”.
Attack from that angle then, not from something that strongly correlates with it.
I’m confused what you mean.
Sorry. Terrible wording on my part.
My argument is that instead of attacking Valve for being big, you should attack them for doing bad things. Your “other comment in this thread” (I assume https://lemmy.world/comment/10668748 ?) describes an aggressive practice done by Valve. Why not lead with that? The problem is not the size of these companies per se, but the way they’ve reached that size and the way they weaponize it against competitors. Focusing on attacking the size and the monopoly status of the companies is just saying “it’s not okay to be successful”.
Everybody would love 2 or 3 more good healthy alternative to even the playing field. Because having the future of fun hang by the tread of a single not-corrupt-to-the-core company is fucking stressfull. But dunking on valve is not the way to a healthy gaming marketplace.
I will continue dunking on Valve as long as they remain the reason good, healthy alternatives can’t exist. I will not re-hash the whole arguments here, please see my other replies in this thread.
I have read your arguments, I just fundamentaly disagree. I do not want to lower the ceiling until valve is as crappy as the rest. I want the floor to rise. Basically valve do not stop other companies from competing. Nothing is stopping EGS from including and contributing to proton. allowing and even helping developers to have their games on multiple marketplaces. Building awesome services to provide to developers.
So is there something you didn’t understand that I can clarify, or are we in agreement that Valve needs to discard the PMFN policy?
Is it a shitty businiss practice? Absolutly. Should valve as the only company allow others to under cut them? No that would be insane. Should it be regulated as illegal businiss practices for everyone - yes absolutly.
Okay, fair enough.
It is basically contractual price fixing. Staggering that the practice is allowed.
Steam isn’t a monopoly, I can get my games elsewhere (epic, gog, humble store, origin etc). But Steam is dominating the market because it does it better. It offers value and features that others don’t, and it generally hasn’t abused its dominant market position to squeeze the consumer or crush their competitors. The closest thing to enshittification we’ve seen from Steam was them allowing third party DRM and launchers, which isn’t something they wanted, it’s them backing down from a stand-off.
I want competition, but there’s good competition and bad competition. Good competition is what we see from Steam and gog, where they stand out by being good at what they do and giving customers what they want.
For an example of bad competition, just look at streaming sites. We went from everything being on Netflix to everything being divided among dozens of shitty platforms, each of which costs more, and the prices keep going up, especially if you don’t want ads. Nothing was improved for the consumer when Netflix lost its defacto monopoly. Which isn’t to say that Netflix is great, only that the competition for marketshare has only made things worse for the consumer.
I think it’s easy to look at all the bullshit EA and Ubisoft and the like pull now, and imagine that same pattern from streaming playing out in gaming.
Not to sound like a ancap idiot or whatever, but I’d imagine that has to do with the fact that streaming services don’t actually compete with one another. Exclusivity deals mean they don’t actually compete in terms of user experience, features, ease of use, higher video or audio quality than their competition, improved bitrate, whatever. Instead, they just compete based on who can snap up what IPs for the cheapest, which is just a game of whoever has the most money, whoever can outbid their competitors. Then, you’re not going to netflix or hulu or disney+ because of the features of the platform, you’re going to them because they have some IP that the other platforms just straight up don’t, and if you want to watch both IPs you gotta pay for both. So, it’s not really competition, in the conventional sense.
See my other comment
Tbf monopolies are sometimes unavoidable. Like the water company or the energy company (at least the ones that actually own the cables). Usually natural monopolies are nationalized though.
Even if steam is not a natural Monopoly, competition is possible, we allow it to be a monopoly because we like it, not the other way around. There are plenty of digital stores, you can at any time buy almost any game from an alternative, I’m not aware of steam having any exclusivity agreement with any game (except the ones that valve made).
Valve also doesn’t use shopping platform monopoly methods such as artificially making process low by selling at a loss, which is the main problem with other monopolies like Amazon.
It also doesn’t bundle 100 unnecessary services to the subscription. It doesn’t even have a subscription.
Sure, you can’t move your steam games to another platform, but you can get new ones. It’s not much of a problem having games from different platforms anyway, GoG for example even let’s you launch steam games from the GoG launcher. And you can always go back to good old shortcuts on a folder.
The moment steam starts enshittifing, it will be very easy to switch to another platform. Compared with other platforms, like any social media or YouTube.
That isn’t the only method. There is also the “[Platform] Most Favored Nation” clause, which eliminates the ability to undercut the platform elsewhere. This allows the platform to leverage it’s market share and benefits to maintain dominance, raising the price floor of the market so nobody can compete on cost. Being the dominant platform, with better economies of scale and consumer intertia, this gives them an advantage in that competing platforms have a difficult time being the better choice.
Valve uses a PMFN clause. See my other comments for links to relevant court cases.
Being familiar with “enshitify”, you should go read more of Cory Doctorow’s (who coined the term) writing over on pluralistic.net. He writes frequently about monopolies (his writing on Amazon’s monopolistic practices (skip to the part about high fees and raising prices) are applicable to Valve’s PMFN clause). He also has explicitly given social media platforms as examples of platforms prone to enshitification because of the high network effects.
It’s not their fault epic sucks
Because it isn’t a monopoly, shut up already.
Steam/Valve is pretty much one of the only companies I actually am perfectly willing to let be a monopoly as they currently stand. Especially since they have come a long ways towards making gaming so much more accessible to Linux users, like me, who don’t know how to take full advantage of wine.
Dehumanizing people who recognize the power of overwhelming market share is a lot worse than pointing out the power of overwhelming market share.
Folks will shit on Alan Wake II for only releasing on EGS, like that’s obviously the only reason it’s not selling well… and then refuse to consider the implications of that claim. I have led people by the nose through what it means when there’s only one store that really matters, and developers are generally screwed if they can’t or won’t sell through that one store.