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.
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Replying to @Mortiel @Miraglyth and
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.
5 replies 0 retweets 11 likes -
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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Replying to @TimSweeneyEpic @Mortiel and
Then how should we treat your words as 'steam management costs aren't that high?'
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Replying to @4Andlu @TimSweeneyEpic and
I think he is probably the world's foremost expert on this outside of Valve
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Replying to @AubreySerr @TimSweeneyEpic and
And yet, his words aren't the truth since he has never worked with those features, and he can't know the actual cost it would be to support all of them with most of steam's library which is huge
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Replying to @4Andlu @AubreySerr and
The size of Steam's library and scale only reduce the unit transaction costs through economies of scale, so Tim is likely correct here.
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Replying to @remotayx @AubreySerr and
Not when you consider that with the higher library, they have to manage more games using the steamworks servers, therefore having to keep it at a high quality. Not to mention, remote play also works separately for every game that supports it
3 replies 0 retweets 2 likes
Remote play is you steaming your game from one machine you own to another using your internet connection, not a cloud hosting service like Stadia.
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