What's Happening?
A recent study conducted by Atomik Research and published by PC distribution platform Rokky has revealed that 72% of developers believe Steam holds a monopoly on the PC games market. The study surveyed 306 industry executives from the UK and USA, with
a significant portion of respondents being senior managers or C-suite level executives from studios with more than 50 employees. The findings indicate that for the majority of these studios, Steam accounts for over 75% of their revenue. Despite this reliance, developers are increasingly exploring alternative platforms such as the Epic Game Store and the Xbox PC Games store, with 48% of those surveyed having distributed titles on both platforms. The study also highlights the use of other distribution channels like GOG, Itch.io, and marketplaces such as G2A and Kinguin.
Why It's Important?
The perception of Steam as a monopolistic force in the PC gaming market has significant implications for the industry. If developers feel constrained by Steam's dominance, it could lead to increased efforts to diversify distribution channels, potentially reshaping the market landscape. This shift could benefit alternative platforms and marketplaces, providing them with opportunities to capture a larger share of the market. However, developers also express concerns about the gray market and potential loss of control when using these alternative channels. The study suggests that within five years, 80% of developers expect to use alternative channels alongside Steam, with 75% predicting at least a 10% revenue increase from these efforts.
What's Next?
As developers continue to seek diversification in distribution, the industry may witness a gradual shift towards a more balanced market with multiple viable platforms. This could lead to increased competition, potentially driving innovation and better terms for developers. However, the transition may also present challenges, such as navigating the complexities of new platforms and addressing concerns about market control and revenue security. Stakeholders, including developers, platform owners, and consumers, will need to adapt to these changes and find ways to leverage the evolving distribution landscape effectively.
Beyond the Headlines
The study underscores the evolving nature of the PC games distribution market, highlighting both opportunities and challenges. As developers explore new platforms, they must balance the benefits of diversification with the risks associated with less established channels. The potential for increased revenue and market reach is tempered by concerns over control and the gray market. This dynamic environment requires developers to stay informed and agile, adapting to new trends and technologies to remain competitive.
