In recent discussions about PC game distribution, a significant topic has emerged regarding the dominance of Steam. A recently published whitepaper by Rokky highlights a survey conducted by Atomik Research. The survey polled 306 executives from game studios—67% from the US and 33% from the UK—and found that a striking 72% perceive Steam as holding a monopoly in the PC game distribution sector.
Exploring the Monopoly Perception
The whitepaper, titled “The State of PC Game Distribution,” introduces an argument, supported by Circana senior executive Mat Piscatella, that although Steam may not be a literal monopoly, it functions as an effective one. Alternatives like GOG, itch.io, and the Epic Games Store serve as other options, yet Steam’s dominance is palpable. According to Rokky, 48% of surveyed developers have used the Epic Games Store and Xbox PC store for distribution, but only 10% have turned to GOG and a mere 8% to itch.io.
The Role of E-Stores and the Gray Market
Interestingly, the survey reveals that nearly 25% view marketplaces and e-stores such as Humble and Fanatical as part of the gray market, fearing loss of control and revenue. However, Rokky suggests these platforms might actually reduce reliance on Steam, offering developers new revenue streams. The misconception about the gray market potentially leads developers to miss out on significant opportunities for revenue growth. Concerns about gray market risks, such as regional pricing manipulation, are addressed in the paper, which argues these fears are often unfounded.
Challenges and Opportunities in Distribution
For many, turning towards alternative stores and making better use of e-stores seem viable, albeit challenging, paths. Discoverability issues, market oversaturation, and the influence of subscription services are ongoing struggles. Yet, with a strategic approach, developers can maintain control over distribution and pricing while avoiding gray market pitfalls. By doing so, they might reach new audiences and enjoy increased revenues.