Game Developers Overwhelmingly See Steam as a Monopoly

For more than a decade, Steam has been the primary destination for individuals looking to acquire or distribute video games on personal computers. While other platforms such as GOG, the Epic Store, and the Xbox PC Games store exist, Steam's vast user base and superior user experience solidify its position as the dominant marketplace where PC gamers make their purchases and developers vie for attention. However, this dominance has raised questions about its potential monopolistic control over the PC gaming industry.

A new whitepaper, titled 'The State of PC Game Distribution,' indicates that a significant majority of game developers perceive Steam as a monopoly. The report, spearheaded by the digital distribution platform Rokky, surveyed 306 executives across the UK and US between May 18 and May 22 of this year. The findings reveal that a striking 72% of developers believe Steam exerts monopolistic power in the PC games market. This perception is particularly notable given that the survey participants primarily consisted of C-suite level senior managers from companies with over 50 employees.

Further emphasizing Steam's commanding position, the study found that for most surveyed companies, Steam accounts for more than 75% of their revenue. This highlights the substantial dependence many studios have on Valve's platform. Despite this reliance, there is a clear sentiment among developers towards exploring other avenues. The whitepaper highlights figures concerning Steam's competitors, noting that 48% of respondents have released at least one game on either the Epic Store or the Xbox PC Games store, while only 10% have utilized GOG, and less than 8% have opted for Itch.io. Rokky acknowledges that the survey primarily reflects the views of larger companies with diverse portfolios.

A strong consensus emerged regarding the future of game distribution, with 80% of respondents expecting to leverage alternative distribution channels alongside Steam within the next five years. This includes exploring storefronts like GTA and Kinguin, as well as bundle specialists such as Fanatical and Humble Bundle. Vadim Andreev, CEO and co-founder of Rokky, stated that the report was created to highlight important trends, though he concedes that it also served to draw attention to their platform. The underlying reason for Steam's perceived monopoly, as many observe, is its unparalleled functionality compared to its rivals, a point reiterated by Robin Valentine in his review of PC gaming launchers last year.

This study underscores the prevailing sentiment within the game development community regarding Steam's market influence and signals a potential shift towards a more diversified distribution landscape in the coming years. While Steam continues to be a critical revenue source for many, developers are increasingly looking to broaden their reach and reduce their dependence on a single platform.