Valve changes revenue-sharing tiers on Steam

Valve announced new Steam rules over the weekend. It might sound like a small change, but its the first time the company is changing revenue-sharing tiers.
Before the change, Valve would keep 30 percent of all revenue on Steam, including full games, DLCs, etc. Microsoft, Sony and Nintendo also take similar cuts on their own consoles.
But the PC is a different market. You can install any app you want and youre not limited to Steam for your digital games. While Steam is still the dominant platform, there are now many alternatives, such as GOG, Discords store and more. Game publishers also have their own stores, such as EAs Origin, Activision Blizzards and Ubisofts Uplay.
In other words, Valve is now facing competition from other companies and game publishers themselves. Some big titles arent available on Steam (Fortnite, Overwatch, League of Legends) and game publishers increasingly feel like they dont get much out of Steam.
Thats why Steam now takes a 30 percent cut on sales under $10 million, then a 25 percent cut on sales between $10 million and $50 million, then a 20 percent cut on sales above $50 million. Valve wants to show big-game publishers that it is willing to give them a bigger cut if they list their popular games on Steam.
Of course, independent developers will think that the rich are getting richer with this move. And theyre right that it wont change anything for small games. This is a message for big video game companies.
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