The PC Gaming Market: Is Steam a Monopoly or a Fair Player?
A startling revelation has emerged from a recent survey, with a majority of game developers believing that Steam dominates the PC game distribution scene. This survey, conducted by Atomik Research and published by Rokky, a PC game distribution platform, has sparked debates about Steam's market power.
The survey polled 306 executives from game studios, primarily based in the US (67%) and the UK (33%). Among them, a whopping 72% believe Steam holds a monopoly in PC game distribution. But is this belief justified?
Industry experts, including Mat Piscatella from Circana, argue that while Steam is undoubtedly a major player, it might not be a monopoly. But here's where it gets controversial: Rokky's whitepaper, "The State of PC Game Distribution", presents a compelling argument for Steam's monopoly-like status.
The report acknowledges alternative distribution platforms like GOG, itch.io, and the Epic Games Store. However, it highlights that Steam's market position is so strong that it can be considered an effective monopoly. Interestingly, 48% of surveyed developers have released games on the Epic Games Store and Xbox PC Store, while only a fraction have utilized GOG (10%) and itch.io (8%).
And this is the part most people miss: e-stores and marketplaces, such as Humble and Fanatical, offer additional distribution channels. Yet, nearly a quarter of respondents view these channels as part of the gray market, fearing loss of control and revenue. Rokky suggests that these e-stores could be a solution to developers' concerns about Steam's dominance.
The report warns that misconceptions about the gray market may cause developers to miss out on revenue opportunities. It dispels the fear that using e-stores will inevitably lead to key reselling in the gray market, which could manipulate regional pricing.
So, should developers shift their focus away from Steam and towards other stores and marketplaces? While this might be a strategy for some, discoverability, free-to-play game saturation, and subscription services present significant challenges for developers trying to sell their games.
In the end, developers entering alternative distribution channels must balance control, pricing, and game value while navigating the gray market's pitfalls. It's a complex path, but with a well-thought-out strategy, developers may find success in reaching new players and boosting revenue.
What do you think? Is Steam a monopoly or a fair competitor? Share your thoughts and let's discuss the future of PC game distribution!
