Valve’s new Steam revenue split favors big titles over indies

Valve has announced its new revenue splitting scheme, and the rates get better for larger titles, which Valve says will help keep Steam an “attractive platform” for big developers. In an announcement posted yesterday, Valve employee ‘Erik.P’ described Steam’s new revenue share tiers. Once a game makes $10 million USD, revenues will be split such that 75% goes to the developer, and 25% goes to Valve. Once it reaches $50 million in total sales, the split adjusts to 80/20%. While the baseline split isn’t covered in the post, Steam Spy assumes it’s set to 70/30 for games that have made less than $10 million, as that's been the case until now. The revenue calculation for a game includes its base package, all DLC, in-game transactions, and Community Marketplace fees collected. “Our hope is this change will reward the positive network effects generated by developers of big games, further aligning their interests with Steam and the community,” the post reads. The more generous splits for big-selling games makes it seem as though smaller developers are getting the short end of the stick, but Valve’s theory is that keeping big games on the platform by offering bigger incentives will help buoy sales for smaller titles - that’s the “positive network effects” Valve mentioned in the post. The more people using a network, the more valuable the network becomes for every member - so goes the theory, at least.

from PCGamesN https://ift.tt/2Pd7MEu
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