You know sometimes I actually straight up FORGET that Steam is run by the same company that created Half-Life?
They:
- identified a gradient of human wants
(Video games exist; I want them on my computer) - Created a vector for that want to be satisfied
(Digital distribution that conveys the games I want to my computer) - Stayed the FUCK OUT OF THE WAY
When you do something well, people don’t notice you’ve done anything at all.
They simply did what everyone else refused to do, get out of their own way.
I think the key was that Steam wasn’t created to make money, but to solve problems they themselves had, like “How do we get new versions of Counter Strike out to all these players?”
Then as Valve wasn’t the only company having these problems, the solution could easily be sold to others.
If the other companies really wanted to crack Steam’s near-monopoly, the solution would be to tackle the problems associated with not having all your games on Steam. Work together on a open-source launcher supporting all stores, similar to GOG Galaxy. First make something useful that tackles an unsolved problem, then you can make money off it when it becomes successful.
Instead they go in just trying to make a buck, and end up just being worse versions of Steam.
That ended up being a bit of a rant, but I’m frustrated at their shortsighted market strategies :p
Oh indeed! And that’s why I love GOG! I actually try to check GOG first just in case I can buy a game I want there before I go through with buying it on steam. I would actually gladly pay MORE for the GOG version because it removes bullshit like DRM!
I used to do the same, but I lost a lot of confidence in GOG after they retroactively restricted their cloud saves to 200 MB.
My hundred-hour Witcher 3 save is exactly the kind of thing I want backed up, but that’s no longer possible. And the very low limit they set, and the urgency with which they started deleting the very data they were expected to keep safe, reeks of a desperation to save money that makes me hesitant to invest more in their ecosystem.
I really want them to succeed though, and I think they have the right idea with Galaxy. Even Epic giving me games for free doesn’t make me actually use their client or store.
But somehow the obvious idea of forming a consortium to develop open standards and implementations for game clients, doesn’t seem like something that will ever happen.
- identified a gradient of human wants
His plan isn’t based off trying to squeeze blood from stones, it’s to sell some video games. Not a very capitalist mindset, but there you have it.
Valve takes 30% from every sale on Steam, which is quite landlord-like. Although there are much worse practices in the market.
Oh no, a sales platform that takes a cut of revenue.
Valve isn’t a charity, and they provide very good services for what developers pay.
Devs don’t need to host download servers, they don’t need to staff customer service reps, they don’t have to set up banking infrastructure or worry at all about handling payments from hundreds of different banks across hundreds of countries.
It’s not like valve takes 30% and sits on it. They put that money to use.
I am not against it.
you gotta take into account the insanely good service both devs and players get in exchange for those 30% here is a list
EGS finally has a shopping cart now, so it’s basically equal now, right?
now it just needs to stop sucking
Don’t ask TF2 player how they feel about this meme
TF2 released in 2007
I mean it’s true for TF2 also, overwatch killed itself lol
They did the bare minimum of banning bots so TF2 has been going pretty great recently. I think I’ve encountered 1 or 2 bots in the last 2 weeks and I’m pretty sure those were just blatant cheaters and not actually bots
I have a mixed feeling about Gabe and Valve.
While I am insanely grateful for proton (even if it was strategically important for them, they didn’t do it out of kindness of heart), some other stuff disturb me:
- Valve being so lenient on CS2 skin gambling, hurting the young people
- A steam account being un-inheritable, making you defacto a tenant of your games
- The 30% percent cut, stealing money from devs
- Gabe spending his money on multiple mega yachts, like every asshole billionaire, instead of making the world a better place
- Gabe claiming to be a libertarian, like Elon and other pieces of shit
- The 30% percent cut, stealing money from devs
Sigh. Here we go again. I’ll just copy one of my older comments about that attitude.
Steam is not a parasitic middle man, it is a collection of services that would have to be provisioned and operated by the developer otherwise. The 30% cut pays for:
- A massive infrastructure to store and deliver the game and its updates, worldwide, and at an acceptable bandwidth that Valve operates
- A storefront that enables monetizing the game
- The audience and discoverability that would not exist otherwise
- The Steam API, achievements, cloud saves
- The client itself, content management, validation, and Linux compatibility tools
- Network and operational security
- Also keep in mind that Steam and its services are operated by experts. A game developer would have to hire the experts or get training.
If the revenue from the cut exceeds the operational costs: it’s called profitability, not theft. The world doesn’t run on good vibes.
Yeah you’re of course right, they are not a charity and shouldn’t have to provide their service for free.
I expressed myself too quickly (the rage!). What I meant is the this cut of 30% is fucking predatory, mafia or middle-age money lender style. You get one third of the rewards of my efforts just for delivering my product? And don’t talk about promotion because this store is now stuffed with too many games for visibility.
You can argue “but this is it the standard rate of the industry”. Well it is predatory everywhere else and I hate Google and Apple as much for it.
A cut of 10% would be more humane. Or whatever to reach a “normal” profitability. But now the discussion becomes complex because we don’t have the concrete numbers.
What is sure, is that it is possible without pain to take way less than 30%. This is something EGS got right, even if I dislike them for many other things (Epic and Tim Sweeney).
predatory, mafia or middle-age money lender style.
Your words have lots of sentiments, but present no facts. I know that Wolfire and Sweeney are independently throwing a tantrum, and we all hate taxes, but I don’t see public exposés showing game developers who went hungry because they couldn’t afford the 70-30 split.
I’ll also remind you that the EGS (12%) is barely profitable, and operated for years at a loss, only sustained by Fortnite (which used dark patterns to extract money from kids, in case you want to see something actually predatory).
I have read your link but they didn’t say the EGS is at loss specifically because of the 12% cut nor that the Fortnite money is subsidizing the lower cut.
It could be that the EGS is at loss because creating a new store and client from scratch costs money ?
To be honest here, we don’t have the numbers to say exactly how much margin Valve is making. But my guess is the following: if EGS estimated that with a 12% cut they could be profitable if they had enough customers, it makes me think that the cut of valve is way overinflated in regards to their costs.
And yes Fortnite is awfully predatory. But the topic is Valve and Steam there 🙂
You get one third of the rewards of my efforts just for delivering my product
you have not read the comment you responded to.
and forgot or ignored that it often is not the dev who gets most of the money at all but publishers like ea and ubisoft. why should customers act in defense of those companies who actively try and make gaming worse for everyone?
an indie dev paying 30% is expensive but steam is really a premium platform for distributing games. it would be nice if it were cheaper but I don‘t really understand the outrage here
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The 30% percent cut, stealing money from devs
This is a pretty spicy take. Let’s consider two possibilities:
-
Game devs choose to distribute independently, and sell their game for $20. They sell 100,000 copies and make $2 million in revenue, and keep the entire $2 million.
-
Game devs choose to distribute via Steam, promote it with a 50% off sale, it goes to the Steam front page, sells 500,000 copies at only $10 each, for a total $5 million in revenue. Steam takes $1.5 million and the devs take $3.5 million.
In scenario 2 the devs make 75% more than in scenario 1. Did Valve steal from the game devs?
Obviously Valve and the developer collaborated to steal money from the consumers who wouldn’t have bought the game without the promotion.
to make sure: /s
-
I love Valve for a lot of things but I’ll never forget that they spearheaded some of the most predatory microtransactions in the industry (loot boxes and battle passes) and were happy to help Bethesda try to sell mods until players raised a huge stink.
A steam account being un-inheritable, making you defacto a tenant of your games
Can’t you just give your kids your steam password ? How would they notice ?
Yes you can workaround it. But this is still a society right they forbid you. And who can say that in 2100 they won’t implement a cleanup job that lock all accounts that are over 100 years old ? 🤪
I’m not sure about that either - unless you really want your real name on a Steam account, you just change the password and the payment method and you should be fine, right?
You can’t change the login username. That’s about it. You can change the profile link, profile name, avatar and other cosmetics, and edit payment methods.
I didn’t knew about he claiming to be a libertarian. Rothbard must be turning over in his grave.
Here’s the thing - Theoretically we shouldn’t give a shit about his political leanings and we don’t have to, because he and his company deliver a good service. I can privately think he’s another asshole libertarian tech bro whose only guiding principle is “everyone should be able to do what I want, but only some people should have the money to do those things”, but it doesn’t change anything about Steam or Half-Life 3.
But this is a problem right ?
Because the libertarian view of the world DOES have an impact on Steam: they have so much inertia to fight against hate speech and extreme right, they do nothing against gambling, and so on. All under the pretense “free speech” which is so convenient.
IMO this is the view of the modern libertarian: all the money, none of the accountability.
It is a problem, you’re right. We shouldn’t have to rely on people with the motivation to do good. Capitalism is failing because without regulation, it motivates people to fuck each other over for an extra dime.
A steam account being un-inheritable, making you defacto a tenant of your games
This is unenforceable under US Law
Well I am European 😂
don’t you guys have better consumer protections?
Maybe, maybe not.
Frankly I don’t even know if this clause can be enforced in Europa. I wanted to point out that we shouldn’t rely on the customer protection laws of each country to address that: this clause shouldn’t exist in the first place.
But to be frank, it most likely doesn’t come from Valve and rather from the games company themselves.
Not to mention his insane Porsche collection, yeah he’s just another billionaire
Valve ruined my favourite game (dota) by flooding the game with ridiculous cosmetics that even change particle effects with no way to disable any of this
There’s nothing wrong with having money or expensive hobbies. It’s not like he’s collecting Senators or buying himself a seat in the Oval Office
Wu wei is a polymorphic, ancient Chinese concept expressing an ideal practice of “inaction”, “inexertion” or “effortless action”,[a][1][2] as a state of personal harmony and free-flowing, spontaneous creative manifestation.
Ancient Chinese philosophy has an answer for everything man
They had some thinkers back then for sure
“If you have the patience to sit by the river and wait, eventually, the corpses of your enemies will float by.” Sun Tzu
The “do nothing and win” strategy.
It’s called making a product/service for their customers instead of for the shareholders bank balance.
This is why Gabe is the goat
<is billionaire <owns yatchs and subs People still wiping his ass with their noses?
He hasn’t enshittified anything yet, and it’s looking like he might not ever, which is why people respect him.
There’s valid criticisms, yes, but that meme is dead accurate. I don’t want to imagine what gaming would look like today if someone like EA the same vast influence over the industry instead of Valve.
Imagine if GabeN created some sort of co-op and left Steam to an employee-run board when he died.
That’s what I was going to say. Sure, Gabe might not be that bad, but what happens to Valve and Steam when he’s gone? Are we just hoping the next guy also isn’t evil?
I was pretty pro-Gabe until I saw some video detailing loot crates and how they targeted kids. There really is no such as thing an ethical billionaire.
Ok, but if people like him didn’t exist would we even have enshittification? In my view things get enshittified so someone who’s probably already well off can “earn” them and other rich people more money. I thought we were mostly all in agreement here that there are no good billionaires.
As far as billionaires go, he’s the least shit of the bunch. No idea what his personal life is like, and I don’t want to know. Every billionaire that makes their personal life public so far has turned out to be a giant cunt.
I think the most cunty public thing he does is collect yachts.
Having even 1 big yatch is cunty but collecting them when people are poor and struggling is cuntyness manifest.
The bar is pretty low for billionaires. He’s not a pedo as far as anyone knows, so that puts him in rare company.
The only bar when you are a billionaire is other billionaires.
Every one of them whose personal life goes public is a giant cunt because you have to be a giant cunt to hold on to billions of dollars. I’d say the waste Gabe produces with his fleet of aquatic toys means he’s a piece of shit billionaire. I love games and Steam but I’m not giving him a pass. And I don’t care if some of his shit is used for research purposes
The American automotive strategy
You mean the Japanese one after the Americans shot themselves in the foot over and over?
Valves business strategy is called something close to a monopoly.
These kinds of comments are just silly. Explain how Valve has a monopoly.
I would almost call it a consumer enforced monopoly. Steam is simply so much better than the competition (besides maybe GOG) that a lot of people will not buy a product if its not on steam. How many people do you know that won’t buy most games if they aren’t on steam?
I sometimes buy games from non steam platforms but I put a lot more thought into it than I would when buying on steam. I simply trust steam to not fuck me when I know the competition will.
I’ve got a whole bunch of free games on my epic account and I’ve never even bothered to try to figure out how to install them.
Same, I know installing from other launchers on linux is possible using lutris, but since the steam experience is so smooth, I’ve never bothered to figure out how.
I think that’s just called having a good product
They provide the best user experience and aren’t a publicly traded company so everyone uses them >:c
/s
If a game isn’t sold on Steam, It isn’t going to sell well.
Because of the huge amount of Valve fanboys who only buy games if they are on Steam.
Games on other stores might as well not exist.
And more, if a game even dares to launch on a different store, it would garner unfavour of all those Valve fanboys and hurt their sales even if afterwards it does launch on Steam.
It is a user enforced monopoly.
Fortnite, Apex Legends, Guild Wars 2 (which admittedly released on Steam later) and more all prove this claim false.
Nowadays pretty much every game is only available on Steam.
That’s easily provably not true. You can get pretty much every single game on epic or good old games exist
If you only check steam it sure feels like that. Try just looking at gog or epic and that feeling will go away.
Or on the game’s website.
Honestly, the secret is not being a publicly traded company. All the others have to make the shareholders happy while steam just does steam. If the line doesn’t have to constantly go up you can pretty much do whatever you want as long as you’re still making profit. And if what you’re doing is already working you don’t need to add gimmicks or advertisements to milk it as much as you can just to appease the shareholders.
Being a private company has allowed Valve to take some really big swings. Steam Deck is paying off handsomely, but it came after the relative failure of the Steam Controller, Steam Link and Steam Machines. With their software business stable, they can allow themselves to take big risks on the hardware side, learn what does and doesn’t work, then try again. At a publically traded company, CEO Gabe Newell probably gets forced out long before they get to the Steam Deck.
Linux was also the only way to make sure Valve was viable long term. Eventually Windows was going to have an Xbox store built in and would’ve basically been a monopoly on PC gaming, cutting out steam altogether. I think windows now sort of does have that, but it can’t compete with Steam quite yet.
The steam controller didn’t really fail, but the patent fight was a mess that took way too long (much too late disqualified patent over paddle buttons). That sucked a lot of energy out of the project. Don’t forget the steam deck kept those touch pads (although with a different design)!
Steam Link IMHO also wasn’t bad, but there didn’t seem to be much interest in it then. (interestingly enough I think it could be recreated today in a Chromecast-like form factor)
Stream machines was definitely a big mess however, there just wasn’t enough interest, too limited compatibility, the machines just wasn’t versatile enough for average Joe to pay for one.
The problem with the Link is its wireless performance. It works perfectly with an Ethernet connection, but not many people have one of those by their TV, even today.
Man Intel are so dumb for firing Pat. And they did it while seeing positive reviews for their second gen GPUs!
That’s just what happens to CEOs of publicly traded companies when they have a bad year. And Intel had a really bad year in 2024. I’m certainly hoping that their GPUs become serious competition for AMD and Nvidia, because consumers win when there’s robust competition. I don’t think Pat’s ousting had anything to do with GPUs though. The vast majority of Intel’s revenue comes from CPU sales and the news there was mostly bad in 2024. The Arrow Lake launch was mostly a flop, there were all sorts of revelations about overvolting and corrosion issues in Raptor Lake (13th and 14th gen Intel Core) CPUs, broadly speaking Intel is getting spanked by AMD in the enthusiast market and AMD has also just recently taken the lead in datacenter CPU sales. Intel maintains a strong lead in corporate desktop and laptop sales, but the overall trend for their CPU business is quite negative.
One of Intel’s historical strength was their vertical integration, they designed and manufactured the CPUs. However Intel lost the tech lead to TSMC quite a while ago. One of Pat’s big early announcements was “IDM 2.0” (“Integrated Device Manufacturing 2.0”), which was supposed to address those problems and beef up Intel’s ability to keep pace with TSMC. It suffered a lot of delays, and Intel had to outsource all Arrow Lake manufacturing to TSMC in an effort to keep pace with AMD. I’d argue that’s the main reason Pat got turfed. He took a big swing to get Intel’s integrated design and manufacturing strategy back on track, and for the most part did not succeed.
k
The GPUs aren’t even a drop in the bucket for Intel. While Gelsinger had the right ideas, he wanted everything all at once which just wasn’t doable.
When “everything is AI now” and your motion board/investors are watching nvidia nearing 1T, then they want you in the GPU business.
And now we’re back to the public companies are terrible at innovation argument. If the line can only go up, you can’t take risks and you have to hurt people to continue at some point.
Agreed, but if I’d had the money at the time, I absolutely would’ve jumped at the steam machine and steam controller. I want a modern one now more than ever. If it weren’t for parts getting shittier and pricier, I’d probably build one myself this spring/summer and figure out which distro would be best for it. My steam deck is great and I want basically the exact same thing but more powerful at the cost of not being a handheld. Bonus points if I can easily remote play that new steam machine through my steam deck, which I think is a reasonable expectation. And I’d love to run an HDMI out splitter to easily swap between using it as a PC at my desk or using it as a console from my couch.
If you buy parts that are a couple of generations older there is absolutely a middle ground between the ridiculous new GPUs and the steam deck on performance, that you could probably build for a similar price to the deck. I would aim for an AM4 build to take advantage of how cheap ddr4 RAM is, with a 3xxx or 5xxx Ryzen CPU. Something like the 3080 is a great card for a cheap price but I personally would go for an AMD card. A few hundred extra (again in AUD) gets you a good 7800XT which is a pretty damn beefy card, but might be better to drop down a couple of models to save on power consumption.
Going even further, you can take someone’s ATX PC secondhand, swap out the motherboard for a smaller form factor and slap it in a little case.
As for OS, if you want it to be exactly like the deck you could run Bazzite, but SteamOS is either available, or about to be available.
I was actually targeting a 7800XT on an AM4 build already lol!
Yeah, it’s just hard to justify the cost when I already have a PS5 and not a whole lot of free time. It makes more sense to wait until the next generation of consoles comes out and then get something that runs games at that time at 1440p, 60+fps. Right now I’d just be building a lateral system for no real reason, pretty late in the current gen lifecycle.
I’d argue you could sell the ps5 and the games and make enough money to mostly (possibly entirely) cover the cost of building a more versatile device, but it’s also a bit of effort when you already have a setup that works for you
Edit: also, the system we’re talking about should comfortably run 1440p60 for the foreseeable future. Newer flagship hardware is targeting higher resolution and much higher frame rates.
Give up haptics??
I have exactly this (AM4, 7800XT, 3440x1440 monitor) running bazzite. Almost every game I have maxes 165Hz, works great for LLM inference too, really the nutso expensive stuff is only necessary for 4K+, which I find diminishing returns at present, LLM training (rent a GPU instead), and probably modern VR. Just to let you know you’re barking up the right tree. :)
Oh, and the 7800XT idles / youtubes ~ 14-20W, 7 with the monitor off. I’m actually using it as a backup NAS / home server in down time, system pulls ~40-45W at the wall and I haven’t even gone deep into power saving as it’s a placeholder for a new homelab build that’s underway.
I thoroughly enjoy the Steam controller and would’ve loved to try out one of the less conventional prototypes. I hope Valve can justify making another controller.
and figure out which distro would be best for it. My steam deck is great and I want basically the exact same thing but more powerful at the cost of not being a handheld.
Bazzite might be your jam. They’re a sort-of competitor (?) to SteamOS, as in they have distros for handhelds in the same way Valve has with SteamOS (which they are now leasing out to manufacturers like lenovo). But they also have versions for laptops and desktop PCs.
I’ve been using their PC (nvidia) version for a week now, and it’s been wonderful. Of course I probably wouldn’t have made the switch if Valve hadn’t helped pave the way and made proton so powerful. Also I probably wouldn’t have switched if I hadn’t given up on LoL and Battlefield (kernel-level anticheat).
I don’t think I’ve even heard of that, so I’ll look into it a bit more. I was leaning more toward an AMD build since that tends to play nicely with Linux compared to Intel/Nvidia. And there were a couple of distros I was interested in trying on my old laptop to compare before committing.
You are right, but let me add that Gabe knows that being tied to Windows is not a good idea, as he worked there and understood that they would block Steam if they could.
Valve supporting ‘their’ alternative OS, away from Microsoft (and Apple) or any other direct competitor in gaming is the only way to survive.
It’s not like they pour all that money into Linux from the goodness of their heart. They need their own OS just as much as the Linux desktop community needs some stable funding.
Given how Valve lets children gamble with skins, I’m not sure how moral that company really is.
man, i hope that Microshaft blocks steam. That would send so many people to lunix.
Unlike companies like Google or Microsoft, whose products are never disappointing!
And also not be backed by venture capital firms expecting to make infinite profits. Private or Public, if the company shareholder’s only goal is to continue to receive 10% gains on their investment after already making back 20x their principal, they’ll squeeze the company for all it’s worth.
Publicly traded companies mean that the people who invested get a say in how the business is run. Those same people are typically riding the success of other people’s decisions and have no idea how to not fuck up. So they demand the company make stupid fucking choices or the CEO will be replaced by someone who will listen.
The trick is to remove the power of the board to remove the CEO and keep them as advisors instead of drivers. The CEO should cook and if they drive the business into the ground, that’s what happens. Businesses need to fail because otherwise the wrong people end up leading.
Businesses need to fail because otherwise the wrong people end up leading.
When businesses fail, their competitors buy their assets, employees, customer bases, and get bigger. Keep playing that a few more rounds and you get a monopoly that can and will prevent or buy new entrants. Then anyone including the wrong people in the industry enter this one company because that’s the only company in this industry.
This isn’t an argument against letting businesses fail. It’s an argument to show that the game of competition doesn’t produce stable competitive environment in the long run. Instead it’s a temporary stage that some markets exist in on the way to consolidation. You can find countless examples for this around us. And therefore letting businesses fail through competition isn’t a long term solution to these problems.
And that’s why you have laws and agencies to prevent that like the German Bundeskartellamt.
I’m not familiar with the corporate landscape in Germany, but the US and Canada also have anti-trust law and competition agencies whose purpose is to prevent consolidation. Why hasn’t that prevented it?
Because nobody enforces the law. There are so many mega corpos that needs to be broken up, but it doesn’t happen.
Because you have an oligarchy
How does an oligarchy come into existence in a capitalist democracy that didn’t start with a monarchy? Can you see a relationship between the process of consolidation and the creation of this oligarchy, where the oligarchs are the people who accumulated wealth through this process, gradually using this wealth to capture the regulators, leading to more consolidation, more wealth and greater capture, and repeat? We didn’t wake up one day with an oligarchy that wasn’t there yesterday. It’s not like all of the current oligarchs can be traced back to an oligarchic family from the past.
I wouldn’t call whatever the US has or had real Democracy to begin with. You only have two viable parties and it’s so easy to abuse. Just look at the mess your electoral college ans gerrymandering is.
I’m not fully happy with the German system because we for example can’t directly elect our chancellor and president but there at least five parties who jump the 5% hurdle to enter the Bundestag and ten or so others you can directly vote for.
Honestly, the secret is not being a publicly traded company.
Valve fortune doesn’t come from not being traded publicly. They built a nearly monopoly on pc videogames with their walled garden proprietary third party launcher.
Valve isn’t a walled garden. They allow other apps to be launched through their app and devs can sell steams key on other platforms.
It is still a mega corp, but trying to attack it from the walled garden angle is pretty dumb.
Does nothing? DOES NOTHING?! He spent the last few years ripping Microsoft a new a@@hole, rendering their operating system meaningless for gamers! …but nice meme
Fun fact many don’t know, Gabe helped create the first versions of Windows and claims he learned more at Microsoft than he ever did elsewhere (at the time). So in a way, he’s transcended Windows, vs ripping it apart.
Gaben has done lots of awesome shit. I fear what valve will become when he’s gone.
I’m not actually too worried. He surrounds himself with champions.
they’ll fuck shit up. Look what happened to apple after Steve died.
So. Many. Dongles.
you know they developed the iPod touch in secrete because they feared that if Steve saw the ugly prototype, he’d shitcan the project?
And where’s the iPod now, eh?
In the iPhone?
Same
