The UK specialist competition tribunal has certified the £656m legal claim against Valve brought by children’s rights campaigner, Vicki Shotbolt. This marks a significant first victory for the class of around 14 million PC gamers against Valve – the owner of popular gaming platform, Steam.
The claim alleges that Valve has abused its dominant position in the PC gaming market under UK competition law by imposing excessive commission charges and anti-competitive restrictions on game developers selling gaming titles on the Steam platform.
These excessive commission charges are passed onto consumers by way of increased prices for PC games and in-game content.
Ms Shotbolt, the class representative, asserts that Valve’s conduct has increased the prices of games across the entire market. Therefore the class is not limited to Steam users but also includes purchasers of PC games and downloadable content on other gaming platforms and distribution channels.
This is an important moment for any gamer who has purchased a Steam enabled game. That includes millions of gamers who have been impacted by the unfair practices that have resulted in them being overcharged. This is an opportunity for them to get redress and for this major platform to realise that when they act unlawfully, they will be challenged.
Is the plaintiff a crackpipe enthusiast? the prices set on steam also reflect the same prices on other store fronts. is she claming the prices set on steam dictate how publishers price their games on other digital stores?
if that was the case, why are epic exclusives like Alan Wake 2 or PlayStation exclusives (on launch) set at a high price? or Nintendo? what am I missing here? ::: spoiler spoiler my question is rhetorical, I know what’s going on lol :::
I am surprised how easily people are siding with Valve. I say this as someone who’s last console was the SEGA and is happy to see Valve improve Linux gaming.
That being said the 30% fee cut is clearly only possible due to lack of competition. In a competitive market, the cut would go down to service cost + some margin (subject to competition).
I don’t believe Valve or any other platform providers ever argued around economic reasoning for choosing specifically 30.
Lack of competition? WTF are you even talking about?
You’ve got Epic, GoG, itch.io, and not to mention publisher specific storefronts like origin, ubisoft’s whatever the hell launcher for PC.
That’s plenty of competition, it’s just that they suck at actual competition or are comfortable in their niche market.
This is not a win for gamers. That spin is wild.
I read the article and I’m not sure what I’m missing.
Their claim is that Valve’s practices, such as the 30% platform fee are anti-competitive. The winners of the lawsuit would be the class of ‘People who have purchased games from Steam’ and the money that the lawsuit recovers would be paid to the class members.
I can’t see the downside of possibly winning some money and having cheaper games on Steam.
But the customers don’t see this. You buy a $60 brand new game on epic vs steam vs nintendo vs prime vs anywhere else: the game isn’t more expensive on steam because of their fees. The game is still $60, the publisher and studio make less money. In fact steam doesn’t even set prices, the publisher does. Steam takes 30% to use the platform. Is that too much? Maybe, but this doesn’t hurt the customer, this hurts the people wanting the profits, mostly the game publishers.
Taking this down to 10% won’t drop the price of the game, it reduces the amount of money steam gets. The publisher gets more money. That’s what changes. A few small indie games where the studio is also the publisher might drop the price, but they will be few and far between.
It most definitely cost the customer more.
What your describing us not how pricing and economics works.
In a competitive market, companies on the supply side are price accepting, like people on the demand side. Gaming in general is relatively competitive.
If a company can sell a game for 60 EUR, they won’t sell it cheaper. If they can’t make it for that cost, they won’t sell it for more, they just won’t make it.
Costs of producing the game generally have no direct impact on the market price.
I think you’re right that thier commission won’t really effect the price of games at all, as that’s more driven by how much people can afford or are willing to pay for entertainment. It still could benefit gamers if the publisher/developer got more of the revenue from the games they purchased, as then the developers could more easily fund future development, especially indie games.
Yes for any game without a publisher. Most indie games use publishers so they can get paid while they’re making the game. It’s really only the games made in a basement on weekends that may see a price improvement.
Maybe, but this doesn’t hurt the customer, this hurts the people wanting the profits, mostly the game publishers.
Trying to argue that adding a 30% tariff to a good doesn’t cause the price to go up is nonsense. It is basic economics that a good which costs more will need to sell for more than a good that costs less.
I don’t know if you’ve been paying attention to geopolitics, but this argument has already played out in the real world and to the surprise of nobody, raising costs via tariffs raise the costs to the end consumer.
Your games cost more because of fees like this.
This price pressure freezes out smaller developers who, if they didn’t need to pay 30% of their gross revenue in fees, would otherwise have been able to run a successful business. Those small developers, which don’t exist, are not making games and that means less variety in the market places and more domination by the large AAA developers.
The only ones that won here are the lawyers. Simple as that.
This completely biased news rag brought to you entirely by the plaintiff’s law firm
Shotbolt is “representing” 14 million british gamers who didn’t ask her anything. PC gamers have everything to lose with this trial. We’re not winning anything here. On the other hand, this claim is well aligned with Epic CEO Tim Sweeny’s constant rants.
Steam gets me off Microsoft spyware and onto Linux. If anything they have done the world a favour
Don’t worry Valve shills, the losses were recovered 122.78 hours ago!!
