While Steam is a platform that many consumers and publishers have embraced, that does not mean that everyone universally adores the platform. Speaking to Maximum PC, Gearbox CEO Randy Pitchford talked about how "a lot of the industry doesn’t [trust Valve]" because of the conflict in interest with other competing publishers.
"It would be much better if Steam was its own business. There’s so much conflict of interest there that it’s horrid. It’s actually really, really dangerous for the rest of the industry to allow Valve to win," described Pitchford. "I love Valve games, and I do business with the company. But, I’m just saying, Steam isn’t the answer. Steam helps us as customers, but it’s also a money grab, and Valve is exploiting a lot of people in a way that’s not totally fair. Valve is taking a larger share than it should for the service its providing. It’s exploiting a lot of small guys. For us big guys, we’re going to sell the units and it will be fine."
"Microsoft has every single one of us running Windows, and it could solve this [distribution] problem in a second if done right," he continued. "It’s not hard, but either the company doesn’t know how to do it, or it’s not willing to invest, or it’s got other priorities. Gamers can see the prioritization. Microsoft is focused on the console platform. For the time being, that’s nice, because some of us aren’t sure we want Microsoft to control [distribution]. Frankly, at this point, I’d rather trust Best Buy and Wal-Mart."
Pitchford sees the issue of digital distribution as a layered problem. "We need to improve the convenience thing, and we need to figure out who controls the digital distribution stuff. I think it depends on the model. If they’re slicing a piece of all of us off, that sucks. It depends how much the piece is. There’s a fair piece and an unfair piece. How much service are they offering? Are they creating opportunity for us to manage some of those resources themselves? We’ll bear the burden of the cost of the service, but we want more of the reward. Are they creating that opportunity for us or is the only way their way?"
"The best example is that I can go to this place using Vista to buy software from Microsoft. But, I can also fire up my browser, whether it’s Internet Explorer or Mozilla, and I can go to any retailer in the world and purchase something. That’s really neat. Amazon has somehow figured something out, as have Apple and others, and made it really convenient for me to buy songs. They have that interface exactly right for the way I want to consume that. It seems like it’s not that hard to do. We’re not there yet, it’s still 2009, but we can see it and know that it’s possible," he concluded.
Part of the problem some consumers have with digital distribution services, even Steam, is that they give a lot of control to the distributor. Hopefully some day, the perfect method that grants a fair level of consumers' rights with protection for the game publisher will be found.
4 Comments
October 8, 2009
"Steam helps us as customers, but it’s also a money grab..."
Shouldn't it be? That's what their Steam business is, is making money from the distribution of games on their service. If a developer or publisher feels they are not getting value for what it costs them to put their products on Steam, then they don't have to do it. There are other options, such as Direct2Drive, Stardock, retail only, etc.
"... and Valve is exploiting a lot of people in a way that’s not totally fair. Valve is taking a larger share than it should for the service its providing."
Larger share than it should? Like I said, if they don't feel they are getting sufficient value from the service, then don't use it.
"It’s exploiting a lot of small guys."
I really wonder if the the "small guys" feel like they're getting ripped off. No doubt they would say they'd like to pay less, but honestly, there are some products that would surely never make as much money if they didn't get the kind of exposure Steam provides. I don't think I ever would have found AudioSurf for example if not for Steam.
I'm not sure how the suggestion of having Microsoft solve the distribution "problem" would be any different from the issues he has with Valve. MS has their own games as well. Why would MS do anything different from how Valve is currently handling Steam, as far as the implication goes with conflict of interest, etc.
I don't understand the Amazon/Apple example. He's implying that is a good model and they've done things right. But how is that distinctly different from what Steam is doing? I see a way to browse products, add to a cart, pay, and download the product.
October 8, 2009
Read, I have seen many developers complain about how Valve takes an extremely large percentage of every sale (I think it was around 60%). My problem with Steam is the fact that they charge the same price as the retail copy. Why should I pay $50 for a digital download of a game when I can spend that same amount to get the game, a box, instruction booklet, and the ability to sell the game or lend it to a friend? A digital version of a game should be cheaper than a physical copy, otherwise it's a rip-off since they are not passing the savings on to us consumers. With a digital download, they avoid having to manufacture a disc/instruction booklet/box, they avoid having to pay to ship the game, they avoid having to share a percentage of the sale with a retailer, and small developers can avoid having to share with a publisher. This means a $50 physical game should be $40 MAX for a digital download (and even then only for high budget games).
March 8, 2010
I can’t believe they’re not doing more for this release!!! I’ve been dying for this and just playing the other two maps with versus was a given! I figured at least another two maps! I’ll download it, because I’m almost tired of the first two versus maps, but I really, really expected more!
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March 19, 2010
it's a rip-off since they are not passing the savings on to us consumers. With a digital download, they avoid having to manufacture a disc/instruction booklet/box, they avoid having to pay to ship the game, they avoid having to share a percentage of the sale with a retailer, and small developers can avoid having to share with a publisher.
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