A new lawsuit was filed earlier this month in the UK that alleges Valve, owner of Steam, has been overcharging 14 million PC gamers and abusing its dominant position in the UK.
It’s clear that Valve’s cut has an influence because it being a % it means that as development costs go up the price of the games need to increase exponentially to compensate for the 30% Valve gets no matter the price.
To quote myself for some numbers:
It you need to make 30$/copy to cover costs in 2015 and Steam is taking 30% you need to sell for 43$/copy, Valve is making 13$/copy.
Development costs go up by 20% over the next 10 years, you now need to make 36$/copy to cover costs, with Steam’s cut you now need to sell for 51.50$, Valve is making 15.50$/copy.
If it was 15% instead? 35.50$ and 42.50$ would be the prices.
The profit in dollars increases exponentially as the price goes up, punch that in a graphics calculator and tell me it’s not a curve that becomes steeper.
you should really inform yourself what “exponential” means lmao. poster was right, it’s proportional growth(linear), not exponentional, there is no exponent here. The graphic with x for how much the product costs and with y for how much 30% of that are is a straight line:
Sounds like the claims people made saying move from physical to digital would result in cheaper prices. Then you see games when they weren’t on steam still going for $60 or $70 despite being launched on their own platform where they pay no cut. Same for games launched only on consoles by the console owners.
Then you go after the publishers next.
It’s clear that Valve’s cut has an influence because it being a % it means that as development costs go up the price of the games need to increase exponentially to compensate for the 30% Valve gets no matter the price.
To quote myself for some numbers:
That’s just how numbers work. Those aren’t exponential increases, they are proportional. 30% will always be 30%.
There’s no benefit to sensationalizing the math.
The profit in dollars increases exponentially as the price goes up, punch that in a graphics calculator and tell me it’s not a curve that becomes steeper.
you should really inform yourself what “exponential” means lmao. poster was right, it’s proportional growth(linear), not exponentional, there is no exponent here. The graphic with x for how much the product costs and with y for how much 30% of that are is a straight line:
f(x) = 0.3x
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Sounds like the claims people made saying move from physical to digital would result in cheaper prices. Then you see games when they weren’t on steam still going for $60 or $70 despite being launched on their own platform where they pay no cut. Same for games launched only on consoles by the console owners.