Retail vs. Steam - Which offers a better profit margin for developers?

[mookiemookie]

Very interesting article. I buy my games almost exclusively from Steam these days. I like not having to keep track of CD keys and finding storage space for disc cases and whatnot. Not to mention that it's getting damn hard to find PC games in any store.

‘There is no demand’ went the mantra. But is this really true? Not in our experience.

I remember fondly the meeting in my office with a red-faced publisher who was explaining why their initial order from a major retailer for one of our new releases was just 30 units. At the time I had my browser open on the Steam product data page, which updates sales numbers every few minutes.

“They have taken one unit for each of their top 30 stores” he told me. “There is just no demand from their customers”.

I glanced at my screen, hit refresh and advised him: “In the time it’s taken you to tell me that there is no demand, Steam has sold 45 units”.



http://www.mcvuk.com/features/808/OPINION-Retail-vs-Steam

[Takeda Shingen]

I would think that Steam is absolutely superior in terms of profit. You can corner the impulse market and do so with minimal overhead. I still prefer having the disc, though. I know that many of the games must be validated and/or installed online, but there is still something comforting about having that physical copy around.

[NeonSamurai]

Steam easily offers better profit margins. Though I myself refuse to touch any game that has to connect to steam, and steam is forbidden from all of my computers. Mostly because I don't like steam gathering data on me or my computer.

[darius359au]

There was a story in the news a week or so ago where bricks and mortar game stores threatened that they wouldn't stock a publishers new game if it was on Steam because steam had an unfair advantage, by only doing business online vs them with their stores and their "overheads" ,in other words people are fed up of being price gouged by the stores and not being able to find much else than console games in the stores and are taking their money to steam.

[Spike88]

I would think that Steam is absolutely superior in terms of profit. You can corner the impulse market and do so with minimal overhead. I still prefer having the disc, though. I know that many of the games must be validated and/or installed online, but there is still something comforting about having that physical copy around.


Some disc-based games allow you to have both. X3 for example allows you to us your disc CD key to claim the game via steam. It's a win win. You have the access of steam, but if steam ever goes down you still have the CD.


I prefer steam solely for the fact that I don't have to drive to the store just to find out that they don't have it. On top of that it's tax-free.

[Takeda Shingen]

Some disc-based games allow you to have both. X3 for example allows you to us your disc CD key to claim the game via steam. It's a win win. You have the access of steam, but if steam ever goes down you still have the CD.

Yes. New Vegas does the same thing. Ditto on having the disc.

[Lord_magerius]

I get most of my games via Steam, though if I want a better deal on something I can wait for I'll usually have a look in my local game shop. Though the only problem with this, is that they recognise most people get their games through Steam so there is basically only one shelf of PC games :cry:

[mookiemookie]

There was a story in the news a week or so ago where bricks and mortar game stores threatened that they wouldn't stock a publishers new game if it was on Steam because steam had an unfair advantage, by only doing business online vs them with their stores and their "overheads" ,in other words people are fed up of being price gouged by the stores and not being able to find much else than console games in the stores and are taking their money to steam.

This article was a reply to that story.

[darius359au]

This article was a reply to that story.
sorry I was more replying to the quote and hadn't read the link :damn: I wonder if I can change my forum name to something like "readfullyfirstbeforereplyingstupid"

[Arclight]

Online distribution does offer a more appealing outlet than brick and mortar. What bothers me though, is that it's not reflected in the prices.

COD:BLOPS (seriously): €60,-. That's what you (I) would pay for a physical copy for a console. And even prices for non-Activision games tend to run as high on Steam as a physical copy.

[Gargamel]

Well during initial release, I would assume they would have the prices the same between retail and steam, as they know some people will always get their copy via one of those two, so might as well up the profits.

I picked up SH3 for $3 on Steam a few months ago, leading me here.... so I like steam!

[Spike88]

One of the great things about steam is the sales. Most of them you would be hard pressed to find anywhere else.