the thing is: CAN they match epic's revenue? epic barely has any cost of maintaining the store due to the abysmal amount of features that actually cost money, like gift cards / forums / eating extra tax from all payment methods. For a fact I know steam's revenue could be -
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Replying to @4Andlu @AubreySerr and
Gift cards mean giving retailers 15%+, putting yet another middleman between developers and consumers. Valve and Epic handle tax exactly the same. Other features don’t add signfiicantly to operating costs - you build it once and have it forever.
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Replying to @TimSweeneyEpic @4Andlu and
Exactly! This is steam wallet price from biggest online retailer in Indonesia. The amount we have to pay is more than what we get. Now who absorb that cost with 30% tax again?pic.twitter.com/yzHU6TF56U
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Replying to @ahlipedang @TimSweeneyEpic and
I get a 5% discount on my physical retailer, all paid by valve. But noooo, your indonesian store is the only one that matters
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Replying to @4Andlu @ahlipedang and
Let's not engage in territorial-ism, if that's a term? There's no real benefit to saying other people's regions don't matter. It'd make more sense to work out if they are misdirecting blame onto Steam for something not caused by them.
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Replying to @Miraglyth @ahlipedang and
every physical retailer, everywhere, no matter the region, will sell you steam gift cards for the actual price, even at a discount sometimes, like mine. That would not be possible without steam covering the costs,something epic would probably not do
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Replying to @4Andlu @ahlipedang and
I have no idea the economics of this. I can only imagine that digital gift cards are sold at a slight loss as standard to attract customers who primarily use bricks and mortar stores. Otherwise why would stores bother stocking them for zero profit?
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Replying to @Miraglyth @4Andlu and
Steam cards are a loss leader for Valve. They eat the costs from them in order to get users into the ecosystem in the hope they buy from the Steam Store directly later. Same as Steam keys. And same as EGS free games, for that matter.
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Replying to @Mortiel @Miraglyth and
They’re not a loss leader. Retailers and distributors generally are taking a 15% cut of card revenue, which comes out of Valve’s 30% cut. There’s plenty of profit left over there.
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Replying to @TimSweeneyEpic @Miraglyth and
Tim, when you say "profit", I think you mean "revenue". Profits are calculated after *all* costs are taken, not just a single source. Don't start this nonsense again. Valve takes a loss on Steam cards and Steam keys, they compensate with revenue from the regular Steam Store.
2 replies 0 retweets 20 likes
Steam takes 30% of most transactions. For purchases that use a retail card, the retailers and distributors take 15%. That leaves Steam with 15%, which far exceeds the operating cost of the service. Hence the service still makes a profit and is not a loss leader.
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Replying to @TimSweeneyEpic @Miraglyth and
Could you detail what exactly are VALVE's costs per transaction? Not Epic's; Valve's. Please, it would very much help in proving your point here and educating me.
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