How much money can you make on Steam?

How Much Money Can You Make on Steam?

In recent years, the digital distribution platform Steam has become a significant platform for independent game developers and small studios to release their games. However, many players wonder, how much money can you make on Steam? The answer is not a straightforward one, as it depends on various factors, including the game’s quality, popularity, pricing, and genre.

Median Earnings: The Numbers

According to a recent study by intoindiegames.com, the median Steam game earned a mere $1,136 in its lifetime. What’s even more staggering is that 68% of all Steam games released in 2019 generated less than $10,000, while 91.5% earned less than $250,000, and 96% of games generated less than $1,000,000. These numbers put into perspective the competitive landscape of Steam, where developers need to be innovative, efficient, and lucky to make a decent profit.

Top-Earning Steam Games: A Glance

Let’s take a look at the top-earning Steam games. Walmart, for instance, sold 25 million copies of their game, generating $500 million in revenue. On the other end of the spectrum, games like Orcs Must Die! and Terraria, while successful, generated only $15 million and $10 million respectively. These figures are an extreme example, and the vast majority of games won’t reach these stratospheric heights.

Steam Revenue Share: What Do You Get to Keep?

Steam’s revenue share is a topic of debate among developers. For most games, the revenue share is 70% going to the developer and 30% going to Valve, the owner of Steam. However, some games might have a 60/40 split or even 80/20 split. Walmart, for example, allegedly took 90% of the revenue from their game. Understanding the revenue share is crucial for game developers to estimate their potential earnings.

Other Factors Influencing Steam Earnings: Pricing and More

In addition to game quality and revenue share, several other factors affect a game’s earning potential:

• Pricing: A game priced too low may not generate sufficient revenue, while an overpriced game may scare off customers.
• Genre: Games from popular genres like multiplayer online battle arena (MOBA), first-person shooter (FPS), or role-playing game (RPG) tend to earn more than others.
• Marketing and Advertising: Effective marketing campaigns can boost visibility and drive sales.
• Updates and DLC: Frequent updates and downloadable content (DLC) can extend a game’s lifespan and generate additional revenue.
• Player Base and Community: Engaging with the community, creating a loyal player base, and fostering positive word-of-mouth can contribute to long-term success.

Steam vs. Console Market: The Comparison

For a broader perspective, let’s compare Steam with the console market. The top-earning console game, Call of Duty: Black Ops III, generated $1.3 billion in sales, while Fortnite reached $50 million per month on mobile. On Steam, a top-performing game like Overwatch earns $10 million per month. Although console and PC markets are different, it’s evident that successful console games can outearn many successful Steam titles.

Conclusion: A Guide for Game Developers

While making money on Steam can be challenging, developers who persevere and innovate can still achieve success. Game quality, pricing, and marketing are essential factors to consider when launching a Steam game. Developers should be prepared for long-tail success, where their game may earn steady, but not astronomical, revenues over time. By understanding Steam’s earning potential, game developers can better estimate their game’s profitability and adjust their strategies accordingly.

Bonus Section: Top 5 Tips for Making Money on Steam

Here are five essential tips to increase your Steam game’s earning potential:

1. Focus on game quality: Create a well-crafted game that offers unique gameplay experiences, engaging narratives, or impressive visuals.
2. Price competitively: Set a competitive price point based on the game’s quality, genre, and target audience.
3. Market your game: Invest in marketing and advertising to increase visibility, generate buzz, and drive sales.
4. Support your game post-launch: Release regular updates, add DLC, and engage with your community to maintain a loyal player base and extend your game’s lifespan.
5. Monitor analytics: Keep a close eye on your game’s performance using Steam’s built-in analytics tools and adjust your strategies accordingly.