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[Fabieter]

Wasn't it leaked in the Microsoft Court documents that Microsoft calculated that for Steam to break even, they need a 16% cut, so that would leave a 14% profit.

It makes me laugh when people then say that Valve should lower their cut to 5% or lower... Cause at that rate Steam would disappear in a year or 2. Lol



Yeah, it was known that Sony was also on 80/20 cut too and I believe they still are till the end of this year.

Which is a pretty good profit margin. They also have their own games which are mostly gaas which they barely Touch and still make billions every year. The profit for such a small company is insane.

 

[Sentenza]

Wasn't it leaked in the Microsoft Court documents that Microsoft calculated that for Steam to break even, they need a 16% cut, so that would leave a 14% profit.

Their cut becomes 25% above a million dollar in revenues and 20% above 50 millions, so it's less than 14% for anything even remotely successful.

 

[Danny Dudekisser]

Probably nowhere.

Also, "it's now a class action" but at the time the article was published it was a class action including just two people.

That doesn't sound right - you can't certify a class with two people.

So yeah, you're probably right - going nowhere.

 

[Z O N E]

Which is a pretty good profit margin. They also have their own games which are mostly gaas which they barely Touch and still make billions every year. The profit for such a small company is insane.

Yeah, 14% is perfectly fine considering the cut gets smaller the more the game sells, so their cut can go down to 9% or even 4% depending on the game sales.

Their cut becomes 25% above a million dollar in revenues and 20% above 50 millions, so it's less than 14% for anything even remotely successful.

Exactly.

25% = Steams profit becomes 9%
20% = Steams profit becomes 4%

EGS is proving why a lower cut is not financially feasible. It has been 6 years and Epic Game Store STILL hasn't turned a profit.

 

[Melon Husk]

Yeah, 14% is perfectly fine considering the cut gets smaller the more the game sells, so their cut can go down to 9% or even 4% depending on the game sales.



Exactly.

25% = Steams profit becomes 9%
20% = Steams profit becomes 4%

EGS is proving why a lower cut is not financially feasible. It has been 6 years and Epic Game Store STILL hasn't turned a profit.

Valve reinvests at least some of the profits into improving the platform with new features. EGS makes no money and has invested $0 to improve the store.