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	<title>Comments on: Deals with the devil: publishers on Steam</title>
	<atom:link href="http://steamreview.org/posts/dealswithdevil/feed/" rel="self" type="application/rss+xml" />
	<link>http://steamreview.org/posts/dealswithdevil/</link>
	<description>Comment and discussion on Valve Software's digital communications platform.</description>
	<pubDate>Fri, 05 Dec 2008 09:04:31 +0000</pubDate>
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		<title>By: boglito</title>
		<link>http://steamreview.org/posts/dealswithdevil/#comment-1678</link>
		<dc:creator>boglito</dc:creator>
		<pubDate>Wed, 18 Oct 2006 17:03:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.steamreview.org/posts/dealswithdevil/#comment-1678</guid>
		<description>I just meant privately owned as in; "someone owns Valve, and they are probably not indifferent to their company's bottom line".

.bog.</description>
		<content:encoded><![CDATA[<p>I just meant privately owned as in; &#8220;someone owns Valve, and they are probably not indifferent to their company&#8217;s bottom line&#8221;.</p>
<p>.bog.</p>
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		<title>By: Andy Simpson</title>
		<link>http://steamreview.org/posts/dealswithdevil/#comment-1674</link>
		<dc:creator>Andy Simpson</dc:creator>
		<pubDate>Tue, 17 Oct 2006 00:11:51 +0000</pubDate>
		<guid isPermaLink="false">http://www.steamreview.org/posts/dealswithdevil/#comment-1674</guid>
		<description>Wow. That Escapist article needs to be read. It sure as hell sounds like Valve have read it. Especially part 2. It sounds that the guy is actually literally proposing what Steam is.</description>
		<content:encoded><![CDATA[<p>Wow. That Escapist article needs to be read. It sure as hell sounds like Valve have read it. Especially part 2. It sounds that the guy is actually literally proposing what Steam is.</p>
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		<title>By: Andy Simpson</title>
		<link>http://steamreview.org/posts/dealswithdevil/#comment-1673</link>
		<dc:creator>Andy Simpson</dc:creator>
		<pubDate>Mon, 16 Oct 2006 21:35:44 +0000</pubDate>
		<guid isPermaLink="false">http://www.steamreview.org/posts/dealswithdevil/#comment-1673</guid>
		<description>What do you mean by privately owned? Valve isn't owned by stockholders, so they're not motivated by profit like a lot of publically owned companies would be, who have a duty to return money to their shareholders.</description>
		<content:encoded><![CDATA[<p>What do you mean by privately owned? Valve isn&#8217;t owned by stockholders, so they&#8217;re not motivated by profit like a lot of publically owned companies would be, who have a duty to return money to their shareholders.</p>
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		<title>By: boglito</title>
		<link>http://steamreview.org/posts/dealswithdevil/#comment-1670</link>
		<dc:creator>boglito</dc:creator>
		<pubDate>Sun, 15 Oct 2006 20:49:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.steamreview.org/posts/dealswithdevil/#comment-1670</guid>
		<description>I think the Activision-deal single-handedly disproves the "steam only accepts games to help developers"-theory. Activision is hugely successful, as is the games released on steam recently (possible exception:gun). In addition, the CoD-franchise is the closest competitor to the DoD-franchise.

I think valve is willing to take any game (within reason) on-board. They are much more about equal-opportunity than narrow-minded elitism, and ofcourse, by merit of being a privately owned corporation they also look at the profit-margins.

.bog.</description>
		<content:encoded><![CDATA[<p>I think the Activision-deal single-handedly disproves the &#8220;steam only accepts games to help developers&#8221;-theory. Activision is hugely successful, as is the games released on steam recently (possible exception:gun). In addition, the CoD-franchise is the closest competitor to the DoD-franchise.</p>
<p>I think valve is willing to take any game (within reason) on-board. They are much more about equal-opportunity than narrow-minded elitism, and ofcourse, by merit of being a privately owned corporation they also look at the profit-margins.</p>
<p>.bog.</p>
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		<title>By: Tom Edwards</title>
		<link>http://steamreview.org/posts/dealswithdevil/#comment-1668</link>
		<dc:creator>Tom Edwards</dc:creator>
		<pubDate>Sun, 15 Oct 2006 16:53:29 +0000</pubDate>
		<guid isPermaLink="false">http://www.steamreview.org/posts/dealswithdevil/#comment-1668</guid>
		<description>The problem here seems to be one of perception: you have no more solid proof that Valve are wearing their capitalist hats as I have that they are trying to maintain some integrity. There are some things I'd like to cover though:

&lt;ol&gt;&lt;li&gt;&lt;blockquote cite="#comment-1667"&gt;&lt;p&gt;Valve have previously had desperate companies because those are the only people who will take the risk.&lt;/p&gt;&lt;/blockquote&gt;
&lt;p&gt;What risk? The only risk involved is that you might upset retailers, but as we've seen that is being negated by retail or near-retail prices. For Ubi in particular there are zero risks; they already have their games downloadable elsewhere.&lt;/p&gt;&lt;/li&gt;

&lt;li&gt;&lt;blockquote cite="#comment-1667"&gt;&lt;p&gt;The supporting the "little guy" is just their bit on the side that comes from being a privately-held business with a little guy culture.&lt;/p&gt;&lt;/blockquote&gt;
&lt;p&gt;Removing the middle man is half of Steam's reason for existence, and easily its most important function. It cannot be stressed enough how important it is that the industry breaks out of the publisher/retail cycle. Greg Costikyan wrote two articles loosely covering the industry issues Steam deals with a while back for The Escapist: &lt;a href="http://www.escapistmagazine.com/issue/8/3" rel="nofollow"&gt;Death to the Games Industry, Part I&lt;/a&gt; and &lt;a href="http://www.escapistmagazine.com/issue/9/4" rel="nofollow"&gt;Part II&lt;/a&gt;. Suffice to say, Valve are not building Steam purely as a gravy train.&lt;/p&gt;&lt;/li&gt;

&lt;li&gt;&lt;blockquote cite="#comment-1667"&gt;&lt;p&gt;"Deals with the devil"? For real?&lt;/p&gt;&lt;/blockquote&gt;
&lt;p&gt;It's just a headline. Don't take it too close to heart.&lt;/p&gt;&lt;/li&gt;

&lt;li&gt;&lt;blockquote cite="#comment-1667"&gt;&lt;p&gt;Finally I don’t understand your second paragraph at all. Do you have details on the revenue breakdown for the contracts signed for Steam, or are you just assuming?&lt;/p&gt;&lt;/blockquote&gt;
&lt;p&gt;The current publishers on Steam (discounting Activision, who arrived after the article was published) are all in financial trouble, so they are very unlikely to be reducing their profit share. It's most likely that Valve's cut is removed and the remaining profits are then split at the same ratio that they would be from a retail purchase.&lt;/p&gt;&lt;/li&gt;&lt;/ol&gt;</description>
		<content:encoded><![CDATA[<p>The problem here seems to be one of perception: you have no more solid proof that Valve are wearing their capitalist hats as I have that they are trying to maintain some integrity. There are some things I&#8217;d like to cover though:</p>
<ol>
<li>
<blockquote cite="http://steamreview.org/posts/dealswithdevil/#comment-">
<p>Valve have previously had desperate companies because those are the only people who will take the risk.</p>
</blockquote>
<p>What risk? The only risk involved is that you might upset retailers, but as we&#8217;ve seen that is being negated by retail or near-retail prices. For Ubi in particular there are zero risks; they already have their games downloadable elsewhere.</p>
</li>
<li>
<blockquote cite="http://steamreview.org/posts/dealswithdevil/#comment-">
<p>The supporting the &#8220;little guy&#8221; is just their bit on the side that comes from being a privately-held business with a little guy culture.</p>
</blockquote>
<p>Removing the middle man is half of Steam&#8217;s reason for existence, and easily its most important function. It cannot be stressed enough how important it is that the industry breaks out of the publisher/retail cycle. Greg Costikyan wrote two articles loosely covering the industry issues Steam deals with a while back for The Escapist: <a href="http://www.escapistmagazine.com/issue/8/3" rel="nofollow">Death to the Games Industry, Part I</a> and <a href="http://www.escapistmagazine.com/issue/9/4" >Part II</a>. Suffice to say, Valve are not building Steam purely as a gravy train.</p>
</li>
<li>
<blockquote cite="http://steamreview.org/posts/dealswithdevil/#comment-">
<p>&#8220;Deals with the devil&#8221;? For real?</p>
</blockquote>
<p>It&#8217;s just a headline. Don&#8217;t take it too close to heart.</p>
</li>
<li>
<blockquote cite="http://steamreview.org/posts/dealswithdevil/#comment-">
<p>Finally I don’t understand your second paragraph at all. Do you have details on the revenue breakdown for the contracts signed for Steam, or are you just assuming?</p>
</blockquote>
<p>The current publishers on Steam (discounting Activision, who arrived after the article was published) are all in financial trouble, so they are very unlikely to be reducing their profit share. It&#8217;s most likely that Valve&#8217;s cut is removed and the remaining profits are then split at the same ratio that they would be from a retail purchase.</p>
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		<title>By: Bob</title>
		<link>http://steamreview.org/posts/dealswithdevil/#comment-1667</link>
		<dc:creator>Bob</dc:creator>
		<pubDate>Sat, 14 Oct 2006 22:43:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.steamreview.org/posts/dealswithdevil/#comment-1667</guid>
		<description>I'm also gonna say that I totally disagree with what you have put down here. You seem to have very strange ideas about what Steam is for - suggesting its "initial vision" was to be some white knight to developers in need.

You grossly underestimate the conservatism of most companies. Valve have previously had desperate companies because those are the only people who will take the risk. Ubisoft only putting Dark Messiah on Steam is because it's easy money (as you yourself revealed, Steam+Source=100%), easy tech to deploy and so is a safe way of testing the waters. The fact that it went several weeks without a price being announced for the game suggests that there were fierce negotiations on that subject. (Which Valve appear to have come out worse on, given the absence of the previously-standard pre-order discount.) They haven't decided *not* to put BG&#38;E on it, I would be very certain, and if DM is successful I expect those games to show up sometime thereafter.

Valve are in the business of building a platform. That is their bread and butter with Steam. The supporting the "little guy" is just their bit on the side that comes from being a privately-held business with a little guy culture. Building a platform is about quantities - the size of your customer base, the breadth of your demographic, the size of your product portfolio, etc. They'd be mad to turn anyone away.

I also find your attitude to publishers to be bizarre. "Deals with the devil"? For real? There are bad eggs, but you can't get around the fact that publishers provide the advances and publishers own the end products. The number of developers who own the publishing rights to their games are very very small.

Finally I don't understand your second paragraph at all. Do you have details on the revenue breakdown for the contracts signed for Steam, or are you just assuming? It would be helpful if you could clarify this.</description>
		<content:encoded><![CDATA[<p>I&#8217;m also gonna say that I totally disagree with what you have put down here. You seem to have very strange ideas about what Steam is for - suggesting its &#8220;initial vision&#8221; was to be some white knight to developers in need.</p>
<p>You grossly underestimate the conservatism of most companies. Valve have previously had desperate companies because those are the only people who will take the risk. Ubisoft only putting Dark Messiah on Steam is because it&#8217;s easy money (as you yourself revealed, Steam+Source=100%), easy tech to deploy and so is a safe way of testing the waters. The fact that it went several weeks without a price being announced for the game suggests that there were fierce negotiations on that subject. (Which Valve appear to have come out worse on, given the absence of the previously-standard pre-order discount.) They haven&#8217;t decided *not* to put BG&amp;E on it, I would be very certain, and if DM is successful I expect those games to show up sometime thereafter.</p>
<p>Valve are in the business of building a platform. That is their bread and butter with Steam. The supporting the &#8220;little guy&#8221; is just their bit on the side that comes from being a privately-held business with a little guy culture. Building a platform is about quantities - the size of your customer base, the breadth of your demographic, the size of your product portfolio, etc. They&#8217;d be mad to turn anyone away.</p>
<p>I also find your attitude to publishers to be bizarre. &#8220;Deals with the devil&#8221;? For real? There are bad eggs, but you can&#8217;t get around the fact that publishers provide the advances and publishers own the end products. The number of developers who own the publishing rights to their games are very very small.</p>
<p>Finally I don&#8217;t understand your second paragraph at all. Do you have details on the revenue breakdown for the contracts signed for Steam, or are you just assuming? It would be helpful if you could clarify this.</p>
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