Valve has announced a new revenue distribution agreement for game developers on Steam. That is great news for successful developers since they now have the opportunity to make more money. Valve just announced the change that is going into effect right now.
As you likely know, Steam is the biggest marketplace for PC games and PC gaming. It is only getting more popular as time moves on and more people are signing up to the PC gaming platform. We have all of the latest news about the change in the revenue distribution agreement, so keep reading to learn more details about this exciting news.
New Steam Revenue Distribution Agreement Gives Successful Developers More Money
We are pleased to be able to tell you about the changes that are now in effect on Steam. Valve made an announcement that will allow game developers to earn more money on the PC gaming platform. When it comes to splitting revenue between Valve and the game developers, there is a big change ahead.
With the new revenue distribution agreement, the game developers will be able to earn more money. The previous standard on Valve was taking 30 percent of the game sales from Steam. There are always exceptions to this rule, such as the smaller game developers who go through Steam Direct.
In the new distribution agreement, Valve announced that it will only take 20 to 25 percent of the game sale revenue. If the game developer has sales between $10 million and $50 million, Valve will only take 25 percent of the game sale revenue. Once the game has made over $50 million, that number goes down to 20 percent.
This means that as the sales increase on Steam, the game developer will be able to keep more money. The changes could make Steam more attractive for those bigger game developers out there. Valve wants to entice more of these bigger and more successful game developers to use the Steam platform, and the change in the distribution agreement is a great start.
Valve Announces It Will Take Less Revenue from More Successful Game Developers
As you probably have noticed lately, there are a ton of bigger game developers that have chosen to use or create their own channels for game distribution Ubisoft, EA, Epic Games, and Blizzard have all chosen to go their own ways when it comes to distribution of their games. The bigger game developers like doing their own thing since it gives them more business control.
These game developers have more control over aspects such as refunds, game updates, and the copyright restrictions related to their games. While you do not have to give all of that up when you put your game on Steam, it does make things more complicated for the game developers. The game developers are making their own launchers and just putting the games on their website or using similar methods.
Since these bigger game developers have started doing this, Valve has noticed it has been decreasing in overall influence. The new distribution change is hopefully going to bring some of these developers back into the fold. Valve is hoping that they will regain some influence in the PC gaming world by getting these developers back on the Steam train.
Valve Changes Revenue Distribution Split & is Biggest Financial Policy Change for Steam
When it comes to the new revenue distribution split, this is the biggest financial policy change for Steam ever. The PC gaming platform has been around for 15-years, but this new change is the biggest change in terms of the financial aspect that the platform has gone through. Valve announced the details of the distribution agreement on the Steam Community Page. The announcement goes onto talk about Steam being an attractive platform for PC gaming.
It also talks about how successful games and those developers bring in a large audience. Valve wrote that game developers can now be more transparent about the sales of their games. There has been a change to the confidentiality clause to allow for a more transparent look at these game sales. The company said that in order to be a well-functioning network, a balance between the contributions of Valve and the game developers is important.
Do You Think New Steam Revenue Distribution Agreement will Entice Big Game Developers?
The hope is that those developers that have chosen to self-release their games might change their minds now and move back to Steam. There are also some online game distributors out there that have been some competition for Steam in the recent years. With this change, Valve is hoping people move to use Steam to distribute their PC games, and it hopefully will also fend off some of the up and coming game distributors online. Speaking of financial terms, it was reported that back in 2017, Steam revenue hit $4.3 billion.
That is a pretty substantial number and also does not include the downloadable content or the micro-transactions. With the newest change, Valve is hoping to get that number even higher since enticing bigger game developers with the revenue change could bring in more revenue for Steam overall. At this point in time, we will have to wait and see how it all works out.
We do not know if the revenue distribution agreement change will indeed bring those bigger game developers on board with Steam. We want to know what you think about the new change to the distribution agreement. Do you think that the bigger game developers like Blizzard or Epic Games will choose to use Steam instead of their own distribution methods? What do you think is a fair cut between the game developers and Valve taking a cut?