Epic Games has been clear about seeing Steam as a direct competitor, and has done everything from giving away free games to paying for timed exclusives to entice players.
Yup, that’s everything. Those are their only options. Yup. Nothing else to be done. It’s an unsolvable problem if those things don’t work.
This is supposed to be how competition in the marketplace works
In case the above sarcasm wasn’t clear, no, this is not how competition in the marketplace is supposed to work.
If you want a preview of an uncaring and anti-consumer Valve, look no further than the company’s efforts on Mac.
This is an example of Apple making life difficult for its customers, not Valve.
There’s no excuse for Steam on Mac to be a far worse experience than on other platforms, though.
There is, because Apple wanted to control their entire hardware pipeline, which meant breaking compatibility with the entire history of PC gaming when they did so. If this is your smoking gun, author, try harder.
Eventually, the bomb will go off, and the full ‘enshittification’ of Steam will commence.
I hate this enshittification term so much, because all it means is that they got complacent, and competitors can pick up the slack. You just spend your money elsewhere, whether it’s Xbox vs. PlayStation or Steam vs. GOG. It is a problem that Steam has so much control of the marketplace, but they got there because their competitors aren’t truly competing. I finally found a reason to shop on GOG again, despite the fact that they don’t support their Linux customers as well as their Windows customers, and definitely not as well as Valve treats them, but DRM-free is a compelling argument for me. Epic does not make a compelling argument for the consumer, which is why that meme, pasted in the middle of the article, exists.
In fact lots are claiming the opposite since this leak came out and they started looking at the numbers and taking directly to devs involved.
Then please link that instead of their estimates, because if they were lying, publishers calling out bad math is exactly what I’d expect to happen. What I see on this list though are a bunch of costs that can be spread out over several years, not paid out all at the same time. Jedi Survivor, Suicide Squad, and Mortal Kombat account for $800M of this list, and none of them came to Game Pass, meaning Microsoft did not opt to spend that money.
Games leave gamepass since when it comes to renewal they don’t want to since streaming cannablizes sales and leads to lower revenue (already said this) so it’s not Microsoft deciding it’s not profitable, it’s the game wanting control back.
You are misplacing cause and effect. It’s more expensive for Microsoft to get someone else’s game on Game Pass right at launch than it is after launch, because if it’s a game people are already excited for, it will eat sales, as opposed to something like Descenders where most people never even heard of it, so it would serve as a form of marketing. In that case, Microsoft and the other company are essentially making a bet with regards to how much the game would make if it’s not on Game Pass, and Microsoft pays them a guaranteed sum up front, which reduces risk but also reduces reward. When a game leaves Game Pass, it’s not because they saw their sales tanking and wanted to “take back control”. It’s that Microsoft isn’t offering them enough to make up for the sales they’d expect to otherwise make for the next leasing period. Microsoft doesn’t offer them as much for the next period, because they don’t expect that keeping that game on the service keeps more people subscribed.
If you can produce that link that demonstrates what you’re claiming, I’ll read it, but otherwise, this sure looks like you’d rather believe in some boogeyman conspiracy theory than a simple truth.
In the link that you provided, which I have seen before, you can see that they turned down games for hundreds of millions of dollars but estimated that that’s what they would cost to get on Game Pass when they launch. Have you noticed that games often leave Game Pass as well? That’s because they have to keep paying those people for those games, and they don’t see any value in continuing to do so. If they were spending 10x on licensing what they reported to investors, that would have come out in these leaks, especially since the licensees would be able to do some back of the napkin math when they can see what was spent to license their competitors. But that didn’t happen. I’m sorry to disappoint you, but there’s no conspiracy here. Microsoft just has a profitable service.
Critical thinking: $200M game budgets are not “per year”. They’re 5+ year development timelines. Microsoft’s output was only a few games. Starfield had a $200M budget over the course of 5 years. Forza wouldn’t surprise me if it had about that for its own budget, even though it reuses a lot of legacy code and assets to get there for cheaper than building it from scratch. But that’s not $200M per year for those games. How much do you think Hi-Fi Rush cost? We’re talking 8 figures for that one, not 9, and that’s over the course of 4 years.
they could also spend more than 10 billion, but they omit that specific information. Why? Because it would show the lie….
They could omit all kinds of things that they didn’t do from their financial reports, sure. Why didn’t they say that they spent $10B? Perhaps because they didn’t spend $10B…
Your link, which I have seen before, refers to how much games are estimated to cost to come to Game Pass, some of which happened and some of which they turned down because they were too expensive. They famously low-balled the impact BG3 would have on the industry and how much it would take to secure that game for Game Pass…if they were interested in doing so.
So if they only make 2.7 billion and spend more than a billion a year with some games costing $200 million….
How is it profitable?
$2,700,000,000 -$1,000,000,000 = $1,700,000,000
If the rest of their expenditures are less than $1.7B, then it’s profitable for the year. Since we’ve already accounted for the line item where they’re licensing products for their service that they don’t own, I’d be surprised if they had $1.7B worth of other operating expenses left to pay for, unless you can share a source stating otherwise. But what I see is this stating that it is profitable.
They are being intentionally vague and not releasing intimation as it would show they are doing very illegal things.
The burden of proof is on you if you think they’re doing something illegal. It’s not difficult at all to believe that they’re doing everything by the book, have a profitable service, and also found a plateau in how many customers are interested in using such a subscription.
What do you mean? It’s already profitable for them. I’m far more concerned with Nintendo’s online subscription than Microsoft’s. Nintendo’s already crossed the line, and Microsoft still stands to make more money by offering games for sale on Steam than to make them only available via a subscription that isn’t doing well with regards to acquiring more customers.
I was being facetious. If your development timeline is 7 years, you have no idea how it’s going to turn out at the end, but they all set out to make a good product, especially when it takes that much time and money to make. Guardians of the Galaxy was supposedly a very good game that bombed horribly, for instance. There’s a lot of risk when your game is that expensive to make, because there are only so many customers out there, and they’re already playing other big expensive games. Even Sony is finding that their marquis titles aren’t bringing in as many customers as they expected anymore, so they can’t keep spending more on games and expect them to be profitable.
True. There would also be even more layoffs in this industry if they threw out years of work and hundreds of millions of dollars at the finish line because they decided not to release a game that didn’t turn out to be as good as they’d hoped.
You can only throw away hundreds of millions of dollars on Avengers and Suicide Squad so many times before they decide to come up with something people are willing to pay for.
I take issue with the requirement being “when it’s no longer supported” for similar reasons. I can foresee an argument where a company advocates for some scenario where they’re going out of business and can’t do it, and some 75-year-old judge who hasn’t played a video game since Tetris lets it slide. Still, this is the shot we have, and we need to take it.
It’s the “complaining when they end” thing that I’m interested in, for sure. Especially if a government listens, which he’s aiming to make happen here.