Despite facing increased competition in the space, not least from the Epic Games Store, Valve’s platform is synonymous with PC gaming. The service is estimated to have made $10.8 billion in revenue during 2024, a new record for the Half-Life giant. Since it entered the PC distribution space back in 2018, the rival Epic Games Store has been making headway – and $1.09 billion last year – but Steam is still undeniably dominant within the space.
Valve earns a large part of its money from taking a 20-30% cut of sales revenue from developers and publishers. Despite other storefronts opening with lower overheads, Steam has stuck with taking this slice of sales revenue, and in doing so, it has been argued that Valve is unfairly taking a decent chunk of the profits of developers and publishers.
This might change, depending on how an ongoing class-action lawsuit initiated by Wolfire Games goes, but for the time being, Valve is making money hand over fist selling games on Steam. The platform boasts over 132 million users, so it’s perfectly reasonable that developers and publishers feel they have to use Steam – and give away a slice of their revenue – in order to reach the largest audience possible.
In 2025, a company that is just looking to make a shitload of money is enough to automatically “win”.
Valve: “What are you selling?” Video games, video game hardware without vendor lock-in, and in-app purchases. “Who are you selling it to?” PC gamers.
Literally everyone else in the space except for Itch, which is decidedly focused on too-indie-for-indie games and is small enough to be acquired if it ever gets popular: “What are you selling?” The promise that we’ll make more profit next year than this year. “Who are you selling it to?” Shareholders or a corp that’ll buy the whole company.
It’s an absolute no-brainer. Until anyone else can answer these questions in the same way Valve does, Valve is automatically the best player in the space. Even if another store sells games for cheaper, or has exclusives, or bans DRM, or manages to make a better storefront program, or pays developers a bigger cut. I’m not on some “good guy Gabe” circlejerk shit. There’s no morals to ascribe here. Valve makes enough money and is okay with making enough money, forever. MS, Epic, EA, Ubisoft, Nintendo, Sony, CDPR, Apple, Amazon, ActiBlizz, and every other storefront operator will be considered a failure if they don’t make “more more money than last year” every year forever. I know which platform I want to maintain a library on. I’ll happily use GOG and Itch to buy DRM-free installers though, those will outlast any enshittification the platform does in the future.
I would take a shitty store with 10% cut if it had all the games Steam does and if I could take my games with me. I don’t care for what Steam provides but I have no choice.