Yes, we estimate average costs of sales at 5-7% in developed markets, based on our experience processing Fortnite payments. 30%-7% = 22% for Valve. 30% profit margin on 70% revenue share = 21% for the example developer.
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Replying to @TimSweeneyEpic @SonOfATech and
And how much does CDN storage and infrastructure cost to maintain? Before giving a BS answer, remember you are talking to people that actually do this for a living.
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Replying to @Mortiel @SonOfATech and
Our costs in the developed world are typically 2.5% to 3.5% for transaction processing, 1% to 1.5% for customer service, 1% for CDN bandwidth. This is based on our experience operating Fortnite digital sales on PC, Mac, and Android.
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Replying to @TimSweeneyEpic @SonOfATech and
And now magnify that by the library on Steam. Fortnite is just one game. You are starting to get there. I have faith in you. Also, let's talk about resource costs. What is your employee overhead?
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Replying to @Mortiel @TimSweeneyEpic and
Cards on the table: Employees alone, OpEx budgeting is often around 30% of revenue alone. Other OpEx items can take upwards of 15%. CapEx, including R&D, can be up to 40% depending on strategy. You want to talk shop, let's stop with the BS here.
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Replying to @Mortiel @SonOfATech and
Homework problem: find the most recent estimate of Steam’s total revenue and divide by the most recent estimate of the number of employees at Valve.
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Replying to @TimSweeneyEpic @Mortiel and
Epic is providing a better deal to devs. It's competition. It's good. It stops a valve monopoly. I just wanted to know about the steam friend's list integration and got my answer there. Thanks for the clarifications once again.
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Replying to @SonOfATech @TimSweeneyEpic and
Aside from being a better deal for publishers (no data yet on whether devs are seeing that), the rest is factually incorrect as I continue to explain why. But you do you, mate. Another glass of Sweeney's koolaide!
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Replying to @Mortiel @TimSweeneyEpic and
TBH man. I was interested in the discourse and found it constructive at first. But you are just being condescending at this point. GL on your youtube channel and podcast.
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Replying to @SonOfATech @TimSweeneyEpic and
Condescending? No. Defensive? Definitely. You and your friend are the ones pooh-poohing someone trying to bring clarity to what is clearly misinformation. The conversation was no longer constructive as soon as you capitulated when a billionaire CEO jumps in the conversation.
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See here for estimated Steam worldwide revenue.https://www.extremetech.com/gaming/266323-steam-earned-estimated-4-3b-2017-benefits-flow-handful-titles …
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Replying to @TimSweeneyEpic @Mortiel and
Source: Estimates taken from SteamSpy. Made up by the guy, who now works for you. Lol!
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