A new whitepaper published by Rokky, a platform for PC game distribution, reveals that in a survey conducted by Atomik Research, which asked 306 executives at game studios, 67% of them from the US, with the remaining 33% from the UK, 72% of respondents believe that Steam has a monopoly on PC game distribution.
But just because these respondents believe that Steam is a monopoly, is it actually a monopoly? As Circana senior executive, Mat Piscatella, and Rokky in its paper titled, “The State of PC Game Distribution” point out, not exactly, but there is an argument to be made.
“Platforms like GOG, itch.io, and the Epic Games Store do offer an alternative to PC game distribution,” Rokky’s report reads. “But there is a good case to be made that Steam exists as an effective monopoly.“
Rokky points out that of those surveyed, 48% have distributed a game on the Epic Games Store and on the Xbox PC store, while only 10% have distributed their games on GOG, and 8% on itch.io. There are also other ways to get your games in the hands of players, with e-stores and marketplaces like Humble and Fanatical playing a part, but not all of those surveyed look at these markets as a positive.
Nearly a quarter of those surveyed see marketplaces and e-stores as part of the gray market; they see them as a loss of control and a loss of revenue. That’s not necessarily the case, and as Rokky points out, e-stores and marketplaces like Humble and Fanatical could be part of the solution to the reliance on Steam that these surveyed developers dislike.
“Lack of clarity around what constitutes the gray market – and the mistakes that can unleash its forces – could signal a missed opportunity for many PC game developers. If developers avoid e-stores and marketplaces because of a belief that they themselves constitute the gray market, then revenue opportunities are missed.”
“Many fear that in using e-stores and marketplaces, they will inevitably see some keys fall into the hands of gray market sellers, in turn exposing them to the aforementioned risks of regional pricing manipulation – but this is not true.”
So is the solution to turn more to other stores not Steam, using e-stores and marketplaces more effectively? For some, probably, but discoverability, oversaturation of free-to-play games, and subscription services all play their own roles in the struggles that developers face to simply sell their games.
“Any developer or publisher that enters the alternative distribution space will want to maintain control over distribution, pricing, and game value, always avoiding the pitfalls of the gray market. The path to opportunity isn’t without its challenges, but with a firm, effective strategy in place, you may find new audiences and increased revenues.”
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