Epic's play is to try and see if being a better looking deal for game devs will translate to being better for gamers or other groups (like linux users, open source advocates) too. We'll see. Valve has already demonstrated their goodwill towards all the groups multiple times, even if it's motivated by keeping their platform dominance.
Yeah, it became the industry standard because it rakes in mind-blowingly huge revenue for the app store owner, e.g. https://www.cultofmac.com/601492/app-store-google-play-reven.... From the article: "It’s no wonder Services — which includes App Store revenue — has become an increasingly important business for Apple as hardware sales have slowed.".
While you're correct that it costs money to run Steam, it's not _that_ much money.
https://youtube.com/watch?v=stxVBJem3Rs Here's a talk from a very old indie company, there's one section talking about how they existed pre-Steam (and other stores they use since Steam's not exclusive) and appreciate what it's enabled.
Steam isn't so much better than the competition that no one can compete with them--they just got into the market at the right time and network effects have taken over.
I mentioned probable economies of scale in a cousin comment, but I don't think they offer all that much. Do you have a % in mind that you intuitively think could be knocked off from the stores of Valve, GOG, Google, Apple, Microsoft, Salesforce App Exchange, and Amazon Appstore, all taking around 30% before you get into the fine print?
I hate Epic for their Exclusivity, but lets not pretend that 30% Fee is nothing more than a money grab by Apple, Google, Valve and the rest of these platforms
The 30% figure is a bit deceiving. If you sell a lot on Steam, you can get a better cut from Valve, but you don't even need to sell a single copy to get a 100% cut - Valve charges nothing for Steam key generation. You could sell keys on your own website and only pay payment processing fees, or get a decent cut from Humble, GMG, etc and not have to manage a storefront. One-third of all Steam game registrations are key activations [0], so this isn't some insignificant revenue stream.
What HN gets annoyed with is exclusivity and lies. Valve never required exclusivity and did not try to become a monopoly (you could sell on GOG, Origin, and any other storefront alongside Steam if you wanted), they just sucked less than the competition (GFWL et al) and developed consumer loyalty through their sales.
Valve is far from perfect, but they're decent and aren't anti-consumer, so when Tim Sweeney starts handing out $2 million for exclusives [1] to undermine everyone else and lies through his teeth on Twitter, people get mad. Epic doesn't want fair competition or they'd focus on making a much better launcher and sell their platform on its merits rather than its exclusives. Tim doesn't care about introducing competition, because it already exists (GOG, Origin, UPlay, etc), and people are still happy to stick with Valve.
>That 30% is coming straight out of gamers' pockets
This implies gamers care about the cut like it's a tax, and that if Valve lowered their cut, games on Steam would be cheaper. I did a quick check and saw the new Watch Dogs: Legion can be preordered on EGS for $59.99. Logically speaking, if the 12% cut is priced at $60, buying from Ubisoft directly (where there's a 0% cut to EGS) should be even cheaper, but nope, it's the same price. The lower cut translates to more profits, and executives won't lower prices just because they're getting more money. The reason for this is that video games are intellectual property, not commodity goods where people can directly compare prices for equivalent products (that is, while I can pick and choose a generic paper towel brand over Bounty and get similar utility for less money, choosing Need for Speed over Forza will result in a very different experience, such that you can't really compare games on price).
Given that Tim wants to force everyone to use his crappy launcher with no intention of Linux support, I can see why HN would rally around Valve. Middlemen are necessary for distribution, server hosting, and dealing with scammers trying to chargeback thousands of transactions, so we might as well have a company that isn't actively hostile to consumers doing it. Valve could lower their cut, but it would do nothing unless they stooped to Tim's level and started paying for exclusives, and Gabe has made it clear he wants PC gaming to remain an open platform, making paid exclusives unlikely. Doing so would result in a race to the bottom, and Tim knows that although Epic has tons of VC money to fund such a race with, Valve's refusal to take VC funds over the years would result in them losing.
[0]: https://twitter.com/Mortiel/status/1120357602305560577
[1]: https://www.pcgamer.com/phoenix-points-epic-store-exclusivit...
One can also look at the possibilities by modeling more than just the $60 game in isolation. Include the cost, it took $X to create, and each $60 sale chips away at $X by some $Y so that after enough sales over some time window breakeven is reached (and profit after that). A new tax means that $Y becomes smaller, so you need more sales than before to reach breakeven within the same time. Except you won't get more sales than before, because the price is the same. You have to eat the tax. You could try raising the price to say $70 or whatever is needed so that $Y remains the same, and now you only need the same number of sales as before, let the customers eat it. Except you won't get the same number of sales as before, because the increase in the product's price will result in a decrease in customer demand, you'll have fewer sales than before within the same time frame. Compared to the difference with $X, it's still the company who has eaten the tax and has to deal with its consequences on their continued existence.
This is a pretty wild accusation to make with no lead-up or follow-through.
They are generous with giving away steam keys, I agree with that. However the alternative for them is people selling exe on their websites instead of the steam key and losing potential customers over it. Also giving away free keys like that allows them to force devs keep the price same as steam prices
