I read an article in the latest issue of MCV Develop linked here: Time to Ditch Steam?Â
The article, authored by Vadim Andreev, CEO and co-founder of Rokky, discusses the potential shift away from Steam, the dominant digital game distribution platform, towards alternative marketplaces. Steam is currently facing legal issues for allegedly overcharging 14 million UK gamers, which has led to questions about its market dominance and the potential for exploring other distribution channels.
Key points include:
Steam's Dominance: Steam has a significant market share with 165 million visitors per month and a gross merchandise value (GMV) of $10 billion in 2022. It takes a 30% revenue cut from publishers.
Alternatives: Other marketplaces like G2A, Eneba, Kinguin, and Gamivo, though smaller, offer more flexible terms and could be more profitable for publishers.
Challenges with Marketplaces: Issues such as reselling, regional price differences, and bulk purchasing during promotions can lead to revenue loss for publishers. For example, games like Total War: Warhammer III and GTA5 are often sold at significantly lower prices on these platforms.
Potential Benefits: Despite the challenges, using alternative marketplaces can increase profit margins, build community rapport, and reach a broader audience. Publishers could potentially increase their sales by 10-20% and avoid Steam's 30% fee.
Strategic Approach: The article suggests that publishers should consider using marketplaces as a separate market and leverage the expertise of experienced partners like Rokky to navigate the complexities and maximize benefits.
In conclusion, while Steam remains a dominant force, exploring alternative marketplaces could offer significant advantages for publishers, provided they manage the associated risks effectively.