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Valve confused by Steam monopoly concerns photo

There is no denying that Steam has an iron grip on the PC digital distribution market with an estimated 70% share. Valve's platform has been an immense success, but some have expressed concern over a game developer owning something like Steam. This argument does not compute with Valve.

"In terms of whether we get too big or maybe our content shouldn't be on the platform, it's just doesn't make much sense. Because the content helps the platform grow," argues Jason Holtman. "There's nothing better in the world for anyone making an Xbox 360 game than the fact that Halo exists. It's awesome, there's nobody saying 'boy I wish Bungie hadn't made Halo' because it sold an awful lot of Xboxes that you can sell your games on.

"Having the content and the distribution that go hand-in-hand make it a stronger platform, make it a platform to reach more consumers with your own game. If you look at any given time on our top-sellers and our marketing, it's clear that [Valve games] are not the only push out there ... We have a force of openness on the PC that's always pushing on us. If we started doing things that were bad decisions for customers or developers, they can just move and go somewhere else."

I don't really get the problem with Valve running Steam. In fact, I'd rather Valve run the platform than some shady publisher like Microsoft (Games for Windows lol) or Activision. If anything, more developers should take charge of publishing. I have a feeling we'd have a much better industry if out-of-touch executives weren't the ones calling the shots.








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33 comments | showing # 1 to 33
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Leathersoup's Avatar - Comment posted on 11/30/2009 15:29
Leathersoup
Personally I think that Steam is as successful as it is because it's as innovative as it is. No other PC service on the internet was willing to do for it's customer base, what Valve was with Steam. They did it first and they did it well.
StingingVelvet's Avatar - Comment posted on 11/30/2009 15:33
StingingVelvet
Agreed Jim, a developer is much better than an executive, as I feel Steam shows with its massive amount of free features and innovations.

He is right about the PC as an open platform keeping them in check. It is almost impossible to have a monopoly in PC actually, since anyone can make a competing site and offer features or freedom beyond Steam to win customers. On the 360 or PS3 everything goes through Microsoft or Sony, there is no alternative, and we have seen that they rule their platforms with an iron fist. On PC this is not possible, Valve can never control the platform even if Steam gets 100% market share, there can always be an alternative at any moment, keeping them competitive.
Doos's Avatar - Comment posted on 11/30/2009 15:34
Doos
Steam has awesome prices. Fuck everyone else!
teke367's Avatar - Comment posted on 11/30/2009 15:36
teke367
It's poor logic, he's comparing a distribution process to a console, so his comparison is crap.

Personally, I don't think its bad that Valve runs Steam and has content available on Steam as well. In general, I don't think its good for one entity to control 70% of a market, for anything.
rel123's Avatar - Comment posted on 11/30/2009 15:36
rel123
Maybe, maybe.. But it's not like Valve isn't making ass-loads of money off of all the games on their, regardless of developer.
rel123's Avatar - Comment posted on 11/30/2009 15:37
rel123
on there* Jesus I'm retarded
Doobles's Avatar - Comment posted on 11/30/2009 15:40
Doobles
What if a publisher wants to put a game on Steam that directly competes with one of Valve's games? What happens then?
jsutcliffe's Avatar - Comment posted on 11/30/2009 15:41
jsutcliffe
@Doos

Actually, I think other than their various sales, you can probably find most titles cheaper than the Steam versions if you're willing to shop around. The digital distribution market is starting to flourish.

However, as someone who isn't willing to do the legwork himself and loves having all his games in one place, I love Steam.
JulianProxy's Avatar - Comment posted on 11/30/2009 15:44
JulianProxy
Steam may well become a natural monopoly. Just because it's a natural monopoly doesn't mean that it's bad. However, for Valve to be confused that there are concerns that a natural monopoly could be abused is ridiculous. This is why there are anti-trust laws. No one is saying that they are abusing anything right now, but concerns for the future are exactly what should be directed at a natural monopoly. As long as they can be awesome, rock on.
The Silent Protagonist's Avatar - Comment posted on 11/30/2009 15:49
The Silent Protagonist
When you buy a copy of Assassin's Creed for PS3, you're not forced to sign up and install Xbox Live on your PS3. But that's more or less what Steam does to its competition on PC. If you're going to promote Steam as a platform, then back the fuck off and let other "platforms" compete.

Steam should really just be a storefront, anyway, not a platform.
Klarden's Avatar - Comment posted on 11/30/2009 15:50
Klarden
@ Doobles
killing floor vs l4d. was there a problem?
why i like the fact that it is Valve running steam, and not someone else is that they know how to know their customers. everytime they try something old or new... no, everytime they do something on steam or in the game they develop - they always check the reactions. everything they do is like an experiment that improves the product or service. and they never stop this experimentation. it may sound big brother a bit, but that is the reason they usually do the best for their customers - they always know what they want
DeepGray's Avatar - Comment posted on 11/30/2009 15:52
DeepGray
@Doobles
Like how Valve screwed over Killing Floor? Borderlands? MW2? Oh wait.
zer0faults's Avatar - Comment posted on 11/30/2009 15:53
zer0faults
@JulianProxy - This was my point in the previous news item. Most monopolies occurred because what they had to offer was the best at the time, and the customers had faith in them at the time to grow into that status. Its not to say Valve is doing something wrong now, but when they have 98% market share, and you have 10+ games you already purchased through them, what leverage at that point do you have if they start doing bad by the customer?

There are other issues with antitrust and that is preventing others from entering the market, which they are effectively doing by packaging Steam on PC games, this is the Mozilla v MS argument, kinda of. By Steam being packaged into games, people arent given the opportunity to see what competitors exist, etc.

We also do not know what happens in the backrooms with Steam/Valve to know that competition isnt being stifled, or innovation isn't being held back. There could be other stores attempting to get packaged on discs and being denied because Steam is so large and developers/publishers are not reliant on them. There are many factors that people need to consider, things that may not being their face, but in the long run effect their price point, and the market itself.
eduh's Avatar - Comment posted on 11/30/2009 16:02
eduh
if other companies want to compete with valve they need to step up.
it seams like people are trying to say that steam should be the one stepping down, so others can compete.
which is fucking ridiculous, i mean just think about it...
Eldragon's Avatar - Comment posted on 11/30/2009 16:19
Eldragon
So far Valve has been a very fair running the Steam service. But I don't trust them to keep that attitude up forever. What happens if Valve gets bought out by EA? Or the current generation of managers at Valve retire and are replaced by out of touch Executives?

Normally I would say its easy for some other company to create their own competing digital distribution service, but once Valve has a near monopoly of the market share, they can start calling the shots.

Lets say I want to start my own service, called "LittleGuy". PublisherX decides they want to distribute their games with LittleGuy and Steam. Steam, not liking the competition created by LittleGuy tells PublisherX "If you put your game on LittleGuy, we won't carry it on Steam". PublisherX, not wanting to lose all those potential sales, goes Steam only for distribution forcing LittleGuy out of the market.
Vanilla Gorilla's Avatar - Comment posted on 11/30/2009 16:24
Vanilla Gorilla
"I have a feeling we'd have a much better industry if out-of-touch executives weren't the ones calling the shots."

Let's put the Assassin's Creed 2 review behind us, Jim, and make babies. Laws of nature be damned.
StingingVelvet's Avatar - Comment posted on 11/30/2009 16:33
StingingVelvet
@ Eldragon

Valve is a privately owned company, they can't get "bought out."
Vanilla Gorilla's Avatar - Comment posted on 11/30/2009 16:35
Vanilla Gorilla
Also, I guess on topic, I respect Valve a great deal for adhering to their home brewed methodology. Cabal Design? I can't think of anyone else that lets everyone participate in the design process and add their two cents to be considered. It's not the norm, but goddammit, it made Half Life one hell of a wonderful game.

I think Gabe has a fantastic thing going. The fact that Valve has a purse big enough to finance everything (development, publishing, marketing) says a lot about the company. They didn't get that way for no reason.

As long as they continue to behave somewhat like Google ("Do no evil.") then I can support them in good conscience. And as for Steam as a platform, I greatly relish the fact. Not only can I buy games and play them as fast as I can download them (which is often faster than actually going to a brick and mortar), they offer great discounts as well. Plus the actual features of Steam are absolutely amazing. They are very user tailored, and I love it.

They don't treat you like you're a prisoner with your balls in a vice, you're treated like an esteemed guest at their estate. Want to communicate with friends? They have an instant messenger service for that. Want to play games with your friends? You can use the IM service to know when your friends are online, contact them, or one better, directly join their game through an IM invite.

Valve could do fuck all if they really wanted to, but the fact is, they're driving innovation and delivering it to the customer. Their goal, as I see it, is to make the customer happy and the profits will come in naturally. Usually it feels the other way around when it comes to anything service related nowadays.
Eldragon's Avatar - Comment posted on 11/30/2009 16:36
Eldragon
@StingingVelvet

I mean "Bought out" in the sense that the owner of the company is approached with a truckload of money and decides to sell his company. Much like how Bioware went from privately owned to EA owned.
N0R3M0RS3's Avatar - Comment posted on 11/30/2009 16:47
N0R3M0RS3
Steam/Valve have such a large market share because they're doing things right. On a platform where choice is something that is valued as deeply as it is on the PC, for them to have a 'monopoly' on digital distribution it simply means more people agree with their practices and/or their platform. I really do not get the complaints against Steam. If you, as a developer/publisher don't like them don't use their service for digital distribution, use D2D or Impulse or even the new Xfire game store. I mean, 2+ million customers must have some idea of whether or not it's good for them, seeing as that's how many people use Steam per day (store.steampowered.com/stats/ for source).

While I do like Steam, they're not perfect. Sometimes I try to use my games in offline mode (Internet goes out or something) and it doesn't let me, but it's generally not a big deal. I've got lots of friends that I keep in touch with via Steam. And I absolutely trust a developer run platform over a publisher run platform. The guys who play the games should be the ones who are most involved in deciding how a gaming platform is implemented, updated and maintained.
JulianProxy's Avatar - Comment posted on 11/30/2009 17:11
JulianProxy
@zer0faults:

This is absolutely true. My main point was really that Valve's apparent surprise that people may have a concern seems silly. While them having a natural monopoly may not be wrong, having seen how Microsoft has abused their monopoly with more than just Mozilla is enough to justify concern at the least. Maybe I didn't convey that very well.
hpv's Avatar - Comment posted on 11/30/2009 17:42
hpv
They could just go elsewhere except they couldn't play any of the games they'd bought through Steam, and even a number of games they DIDN'T buy through Steam, such as MW2.

I actually kind of like Steam, better than any of Valve's games that's for sure, but Jim you're missing the point. The alternative to Valve owning and operating Steam isn't Microsoft or Activision or EA running a similar service, it's Steamworks Inc (or whatever they'd call it) owning and operating Steam independently of any content producers.

Whatever your current opinions of Valve and Steam are you should want them to be separate entities. If they're going to control 70%+ of the market they need to as free of conflicting interests in that market as possible.
Xzyliac's Avatar - Comment posted on 11/30/2009 17:47
Xzyliac
@The Silent Protagonist
But they do force you to buy the PS3 if, say, ACII were console exclusive. Same deal.
The Violator's Avatar - Comment posted on 11/30/2009 18:01
The Violator
@The Silent Protagonist
Are you serious? Steam started out as a platform to help Valve's player base stay connected to each other and the servers for Valve/Source games. If you don't want to deal with the Stem platform, then buy an actual copy of the game or buy it from another digital download merchant and stop your unnecessary whining. If Steam were to become just a storefront, we would have to deal with other platforms that get the job done half-assed such as gamespy.com and Games For Windows. Your argument is stupid, and the analogy you used with Assassins Creed 2 on PS3 and being forced to sign up for XBL makes not one bit of sense and it isn't even close to relating to how Steam works.
Leathersoup's Avatar - Comment posted on 11/30/2009 18:11
Leathersoup
@hpv - By the same token, Microsoft and Sony should not be allowed to handle the licensing of games for their consoles. Valve has games being published for the Xbox and I'm not hearing you say that Microsoft shouldn't be allowed to also make games for their console. It seems to be a double edged sword.
Kalmah's Avatar - Comment posted on 11/30/2009 18:26
Kalmah
$5 for Mirrors Edge? How can anyone hate Steam?
Churchhills Dog's Avatar - Comment posted on 11/30/2009 18:39
Churchhills Dog
What it comes down to is Valve, instead of stuffing their pockets with profits like so many in the industry do, had the foresight to reinvest into building STEAM. I find it pretty disingenuous that ANYONE who has been in the industry for any amount of time is bitching about this at all.
SnatchTease's Avatar - Comment posted on 11/30/2009 19:03
SnatchTease
Most PC developers/games don't roll with Steam. It is a better way to go, however. Only in the U.S. would common sense be put to trial.
Malachi Constant's Avatar - Comment posted on 11/30/2009 19:28
Malachi Constant
remember all of Valve's recent statements that they can make a ton of money off a sale even if they lower the game to the price of a cup of coffee (the TF2 $2.50 sale)? Even if they did completely monopolize the industry, I highly doubt prices would go up at all, since they make the most money when prices are low.
AliasWyvernspur's Avatar - Comment posted on 11/30/2009 20:41
AliasWyvernspur
When purchasing an iPod, you have to install iTunes (yes, I know of the alternatives.) The fact is, that's what Apple wants you to do. iTunes of course, is not just an organizer for your music, or keeper of the iPods, but a music store, giving you the ability to buy music from them for your iPod.

Never is there any alternatives given to you from within the iTunes store (you can buy from Amazon, but not from within iTunes.)

In a similar situation, Valve has bundled Steam with their games (as well as some 3rd party software, such as MW2.) Though not exactly the same, you can see how there can be some parallels drawn between the 2 storefronts.

Going by Wikipedia (granted, not the be all, end all to research), iTunes has a 70% market share on all digital music (Jan 2009.) Same as Valve's 70% digital gaming. Do we hear all the complaining about how Apple is "creating an evil monopoly with digital music, ooOOOOOHH!!!!")? Not that I've heard.

The differences of course, is that the music sold by Apple isn't created by Apple, whereas there are games sold by Valve through Steam. But iTunes is mainly a push for people to buy iPods, and vice-versa (iPods to push iTunes, and therefore iTunes music store.)

But in both cases, products you purchase from both companies, come bundled with software that A) managaes the product and B) provides a storefront for more product.

The bottom line for both situations is: there are always alternatives, some better than others (to me, Steam is better than the rest, and Amazon is better than iTunes.)

You don't want to buy music from iTunes for your iPod? Fine, then don't, there's always Amazon.
You don't want to use Steam for your games? Fine, then don't, there's always Direct2Drive, or Impulse, or a disc from the store.
whatthi's Avatar - Comment posted on 11/30/2009 21:07
whatthi
haha at the header picture..

whats that got to do with Valve? and Steam?..lols unless thats Gabe Newell after a shower then fair enough
dgschrei's Avatar - Comment posted on 12/01/2009 00:12
dgschrei
Oh man how many times do we have to go throug this? Games for Windows != Games for Windows Live.
Games for Windows is actually a good thing. It's a little quality label by MS that studios can put on their games if they adhere to certain standards which are as follows:
Has an "Easy Install" function
Works with Vista/7 game explorer. (Wish steam would do that. Why can't it also put a link to the game in there and not only on my desktop?)
Works on Vista 64bit.
Game supports both 4:3 and 16:9 screen resolutions
Supports Vista's parental controls
Supports the Xbox360 Controller

The last one is also the best. As a long time PC gamer I know how annoying it was, that there never was a standardized controller. It was always a gamble if your controller would work with the game or not. And if it didn't you were pretty much fucked.

So in conclusion: Put all the hate you want on Games for Windows Live but stop mixing it up with the totally unrelated Games for Windows Label already.
Thulsa Dooom's Avatar - Comment posted on 12/01/2009 01:30
Thulsa Dooom
It'll be a cold day in hell when I pay for an MP3. Steam, <3<3<3.
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