EDIT: If it’s true that Valve is also refusing to sell games that are sold for a lower price in other stores where steam keys are not being sold then I think there’s definitely a case here. I didn’t understand that was their policy but if so it sucks and I take back anything good I said about them being permissive. Thanks to this comment for finding the exact language in the lawsuit that alleges this.
I’d be interested to see what Wolfire’s case is, if there’s more to it that I don’t know about I’d love to understand, but if the article is characterising their case accurately…
claiming that Valve suppresses competition in the PC gaming market through the dominance of Steam, while using it to extract “an extraordinarily high cut from nearly every sale that passes through its store.”
…then I don’t think this will work out because Valve hasn’t engaged in monopolistic behaviour.
This is mainly because of their extremely permissive approach to game keys. The way it works is, a developer can generate as many keys as they want, give them out for free, sell them on other stores or their own site, for any discount, whatever, and Steam will honour those keys and serve up the data to all customers no questions asked. The only real stipulation for all of this is that the game must also be available for sale on the Steam storefront where a 30% cut is taken for any sale. That’s it.
Whilst they might theoretically have a monopoly based on market share, as long as they continue to allow other parties to trade in their keys, they aren’t suppressing competition. I think this policy is largely responsible for the existence of storefronts like Humble, Fanatical, Green Man Gaming and quite a number of others. If they changed this policy or started to enshittify things, the game distribution landscape would change overnight. The reason they haven’t enshittified for so long is probably because they don’t have public shareholders.
To be clear I’m against capitalism and capitalists, even the non-publicly-traded non-corporate type like Valve. I am in fact a bit embarrassed of my take on reddit about 7 or 8 years ago that they were special because they were “private and not public”. Ew, I mean even if Gabe is some special perfect unicorn billionaire that would never do any wrong, when he’s gone Valve will go to someone who might cave to the temptation to go public. I honestly think copyright in general should be abolished. As long as copyright exists I’d love to see better laws around digital copies that allow people to truly own and trade their copies for instance, and not just perpetually rent them. I just don’t see this case achieving much.
I was under the impression that the policy required a game’s price to be the same on all marketplaces, even if it’s not a steam key being purchased. I.e. a $60 game on steam must sell for $60 off-platform, including on the publisher’s own launcher.
I just went to double check my interpretation, but the case brief by Mason LLP’s site doesn’t really specify.
If it only applies to steam keys, as you say, then I agree they don’t really have a case since it’s Steam that must supply distribution and other services.
But, if the policy applies to independent marketplaces, then it should be obvious that it is anticompetitive. The price on every platform is driven up to compensate for Steam’s 30% fees, even if that particular platform doesn’t attempt to provide services equivalent to Steam.
According to a Valve quote from the complaint (p. 55), it applies to everything:
In response to one inquiry from a game publisher, in another example, Valve
explained: “We basically see any selling of the game on PC, Steam key or not, as a part of the
same shared PC market- so even if you weren’t using Steam keys, we’d just choose to stop
selling a game if it was always running discounts of 75% off on one store but 50% off on
ours. . . .”
Does it though? It seems like Valve is targetting the fact, that you can’t run the same game on a different platform for different amounts. So if Valve gets 30%, and some other store gets less, then they ask you to not run it cheaper. I.e. you can’t sell on both stores for $40, and then set a permanent -30% sale there.
What right does valve have to discriminate against devs and publishers who are selling their game on other platforms? They have to compete for their business, not punish them for having a game that is more successful on another store that gives a higher revenue cut to the dev and a lower price to the customer.
EDIT: If it’s true that Valve is also refusing to sell games that are sold for a lower price in other stores where steam keys are not being sold then I think there’s definitely a case here. I didn’t understand that was their policy but if so it sucks and I take back anything good I said about them being permissive. Thanks to this comment for finding the exact language in the lawsuit that alleges this.
I’d be interested to see what Wolfire’s case is, if there’s more to it that I don’t know about I’d love to understand, but if the article is characterising their case accurately…
…then I don’t think this will work out because Valve hasn’t engaged in monopolistic behaviour.
This is mainly because of their extremely permissive approach to game keys. The way it works is, a developer can generate as many keys as they want, give them out for free, sell them on other stores or their own site, for any discount, whatever, and Steam will honour those keys and serve up the data to all customers no questions asked. The only real stipulation for all of this is that the game must also be available for sale on the Steam storefront where a 30% cut is taken for any sale. That’s it.
Whilst they might theoretically have a monopoly based on market share, as long as they continue to allow other parties to trade in their keys, they aren’t suppressing competition. I think this policy is largely responsible for the existence of storefronts like Humble, Fanatical, Green Man Gaming and quite a number of others. If they changed this policy or started to enshittify things, the game distribution landscape would change overnight. The reason they haven’t enshittified for so long is probably because they don’t have public shareholders.
To be clear I’m against capitalism and capitalists, even the non-publicly-traded non-corporate type like Valve. I am in fact a bit embarrassed of my take on reddit about 7 or 8 years ago that they were special because they were “private and not public”. Ew, I mean even if Gabe is some special perfect unicorn billionaire that would never do any wrong, when he’s gone Valve will go to someone who might cave to the temptation to go public. I honestly think copyright in general should be abolished. As long as copyright exists I’d love to see better laws around digital copies that allow people to truly own and trade their copies for instance, and not just perpetually rent them. I just don’t see this case achieving much.
I was under the impression that the policy required a game’s price to be the same on all marketplaces, even if it’s not a steam key being purchased. I.e. a $60 game on steam must sell for $60 off-platform, including on the publisher’s own launcher.
I just went to double check my interpretation, but the case brief by Mason LLP’s site doesn’t really specify.
If it only applies to steam keys, as you say, then I agree they don’t really have a case since it’s Steam that must supply distribution and other services.
But, if the policy applies to independent marketplaces, then it should be obvious that it is anticompetitive. The price on every platform is driven up to compensate for Steam’s 30% fees, even if that particular platform doesn’t attempt to provide services equivalent to Steam.
According to a Valve quote from the complaint (p. 55), it applies to everything:
Thanks, that clears it up. So yeah, I think Wolfire has a case to make, then.
Does it though? It seems like Valve is targetting the fact, that you can’t run the same game on a different platform for different amounts. So if Valve gets 30%, and some other store gets less, then they ask you to not run it cheaper. I.e. you can’t sell on both stores for $40, and then set a permanent -30% sale there.
What right does valve have to discriminate against devs and publishers who are selling their game on other platforms? They have to compete for their business, not punish them for having a game that is more successful on another store that gives a higher revenue cut to the dev and a lower price to the customer.