Does Steam Get a Cut of Microtransactions?
The Answer is Yes
In recent years, the gaming industry has witnessed a significant rise in the popularity of microtransactions, also known as in-game purchases or DLC (Downloadable Content). This business model allows game developers to generate additional revenue streams by selling virtual goods or bonuses within their games. But what about the middleman, Steam? Does it take a cut of these microtransactions?
Direct Answer
Yes, Steam does take a cut of microtransactions.
Steam’s revenue share model is a well-established and transparent system that is applicable to all game developers who distribute their games through the platform. According to Steam’s terms of service, for every sale of a game or DLC, the developer earns 70% of the revenue, while Steam takes the remaining 30%. This is a standard commission fee that applies to all game sales on the platform.
Additional Fees for Smaller Games
For indie games that generate less than $10 million in revenue, the commission fee is higher. Steam takes a 30% cut, leaving the developer with 70%. However, if the game reaches $10 million in revenue, the commission fee drops to 20%. This means that for larger, more successful games, Steam’s commission fee is significantly lower.
Table: Steam’s Revenue Share Model
| Revenue Threshold | Developer’s Share | Steam’s Share |
|---|---|---|
| Below $10 million | 70% | 30% |
| $10 million+ | 80% | 20% |
Force Price Parity
In addition to taking a commission fee, Steam also has a "force price parity" policy. This means that if a game developer offers their game at a different price on their own website, Steam requires them to match that price on their own store. This policy aims to prevent price wars between different platforms and ensure a fair market price for games.
Developers Must Use Steam’s Payment Processing
Another significant point to consider is that developers must use Steam’s payment processing system for all microtransactions. This means that Steam gets a small fee for every transaction, even if it’s a small fraction of the total revenue.
Comparison with Epic Games
In contrast, Epic Games, the creator of Fortnite and the Epic Games Store, takes a more competitive approach to commission fees. They offer developers a 88% share of revenue, with a 12% commission fee. This is significantly lower than Steam’s commission fee and has led some developers to abandon Steam for Epic’s platform.
Conclusion
In conclusion, Steam does take a cut of microtransactions. While the commission fee is standard for all game developers, the revenue share model can be complex and is subject to changes over time. Understanding the fees and revenue share models of various platforms is essential for game developers who want to maximize their revenue.