This “most favored nation” clause in contracts is huge! It means that even if another store takes half of Steam’s cut (say, 15% vs 30%), the game can’t be sold for less, meaning other rival stores can never compete on price. In other words, Steam drives up prices for games economy-wide. Amazon does something similar, and this was part of the basis the FTC’s antitrust lawsuit against them.
Steam doesn’t prevent anyone from selling their game at whatever price they want. They only prevent them from selling it through THEIR distribution platform at a lower price than it can be purchased directly from Steam. IE they cannot sell steam keys for less than the steam list price. If they want to distribute themselves they can.
Say I sold a game for $10 on Steam and GameStoria. With the 30% you suggest I would take home $7 from Steam and $8.50 from GameStoria. I make more with a competitor who is willing to take less and of their instead wanted to charge more, Steam would be more profitable… The consumer doesn’t see anything but a $10 game.
This “most favored nation” clause in contracts is huge! It means that even if another store takes half of Steam’s cut (say, 15% vs 30%), the game can’t be sold for less, meaning other rival stores can never compete on price. In other words, Steam drives up prices for games economy-wide. Amazon does something similar, and this was part of the basis the FTC’s antitrust lawsuit against them.
Steam doesn’t prevent anyone from selling their game at whatever price they want. They only prevent them from selling it through THEIR distribution platform at a lower price than it can be purchased directly from Steam. IE they cannot sell steam keys for less than the steam list price. If they want to distribute themselves they can.
You must be joking
Say I sold a game for $10 on Steam and GameStoria. With the 30% you suggest I would take home $7 from Steam and $8.50 from GameStoria. I make more with a competitor who is willing to take less and of their instead wanted to charge more, Steam would be more profitable… The consumer doesn’t see anything but a $10 game.