245: Steam: A Monopoly In the Making

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DSuds

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Oct 19, 2009
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A good article, but the 'Intel is OK because processors are cheaper' argument is crazy. Win7 beats the crap out of Win ME but that doesn't justify their behavior.
Intel made buyers choose either to be 100% Intel or lose millions in marketing, rebates and other kickbacks. This is in addition to specifically targeting and undercutting laptop.org's efforts to provide laptops to poor children in the 3rd world.
If you don't think a Pentium costs less today because the AMD's CPUs are even cheaper (and were faster for a while) you're nuts.

Sounds like Valve has created something in Steamworks that is compelling to publishers. By bundling it they will gain a distribution channel for Steam. As a result they may lose some publishers. When somebody chooses not to buy a game because it doesn't have Steamworks maybe we need to worry.
 

hellsop

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Feb 28, 2009
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raankh said:
The simple solution is to open source the Steamworks API; Valve could fork off a branch and tie that to their services while providing compatibility with the free (as in freedom) version.
Well, it doesn't address the "monopolistic behavior" presented in the original article: that Steam installs stuff that people didn't ask to nor desire to have on their computers as a requirement for using software they've already purchased.

However, that brings up two kinda related points that I haven't seen brought out in the whole thread thus far. Or, for that matter, not much in *any* discussion of the "must install software" issue. Point 1 is that requiring supporting software is not new and kinda comes with the territory. You've gotta have the right kind of OS, gotta have often the right VERSION of the OS (which aren't included with the software) and there's also a slew of things that DO come along with the software installer, like a specific version of DirectX, or ALSA sound engines, or a customized JVM, or any of a slew of other miscellaneous bits and pieces. Which makes "Oh no! You've got to install Steam" seem kind of banal. Point the second is that even if Steam were NOT a monopoly (presume there's three other similar systems, on a more or less equal footing), this kind of thing would be EVEN WORSE for the consumer, as instead of having one Digital Delivery Engine (DDE -- remember that acronym and we can shorthand a whole industry), the consumer gets a quarter of the potential product market for each DDE she's willing to let be installed. And how many of you out there want to bet that ALL OF THEM play nicely together and don't interfere with each other, in the process of doing their DRM stuff? Yeah, I thought that pool would be a little on the shallow side... Okay, another bet: How many think it'll be easy and convenient for a software publisher to sign up with two or more of the DDEs? A few more hands, but that's a sucker bet from the start. As soon as there's a credible competition, exclusivity clauses will start coming out all over the place, and probably with some level of lock-in, preventing particular software studios from hopping from one DDE provider to another, even for different titles.
 
Jun 15, 2009
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Direct2Drive can crash and burn for all I care. Don't rag on steam if you won't even make your service available In Australia and New Zealand, at least when steam overcharges for us the option is still there.
 

Twinmill5000

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Nov 12, 2009
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Woot! A writer from Portland in the Escapist who knows his stuff! :D

I'll admit, being someone who literally hates going to any store, Steam is one of the best things to happen to me. Still, I can see where you come from. I've been a Valve fanboy (yes, I said it) until I started working in Unreal Engine 3 and seeing just how powerful it is, so I guess I've never noticed the whole Steam-Installing-Itself-For-You-To-Play-Said-Game issue. I mean, with Garry's mod and games of the like, installing a Valve... hub to run it seemed like a no brainer. Still, I've had my fair share of troubles with Steam too... like when my last logon onto Steam was on my desktop and all of the sudden I feel like playing L4D2 or something at school. Won't happen for the day, and really, from a developer prospective, what plausible workaround is there?

I can kinda see the innocent side of Valve requiring games to work only with Steam when they use Steamworks... kinda. If a developer decides to interlace a game with Steam, probably in its core engine depending on how it works... well the game's meant to work with Steam at that point. Though, it is still bullshit and can much more easily be viewed as an effort for valve to keep a game to itself. The bottom line, in my views is this: It should be the developer's decision what they do with their game after they decide to use Steamworks. It's kinda why I like Unreal now... their full engine is free, granted they get a slice of any profit you make from your game... and a small one at that. Besides, in the end, Steamworks seems like just an SDK-- something to make integration easier and nothing more.
 

samsonguy920

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Dizko said:
This is one of those topics that annoys the begeezes out of me.

There are two sides of the coin here, people need to think of Steam as a platform, not simply a digital distribution model, because that's what it is, a platform.

No one complains about the Xbox 360 being a closed platform, where Microsoft has absolute control. Should I be allowed to run software on my 360 to allow me to play PS3 games on it? Of course not, that's absurd. But we're quick to condemn anything that's even remotely similar on the PC. No one ever complains about Microsoft having a monopoly over Xbox 360 or Sony having one over Playstation.

Here is the simple reality of it. If you have problems with Steam, don't use it. But keep in mind that Steam is no different than any console, they're all tightly controlled closed platforms.
You sir hit the nail on the head. There is plenty there to consider Steam not just a service, but an actual platform. Not only is it a gaming system but also chat, messaging, forums, blogs, and even statistics analysis. If people decide to go after Steam with torches, they may as well go after LIVE(which includes Games for Windows LIVE) and PS Home as well.
Yes Valve freely provides Steamworks, but it doesn't restrict other services, so it is not a monopoly. Nor is Valve looking to have one. It really isn't their fault that the other digital distributors suck. D2D's choice to not carry MW2 is beyond insane, and frankly I am surprised they are still around. I would prefer to see other DD's come up and provide decent competition. But as long as those other DD services don't make any effort to get themselves known, as well as provide a solid interface, they aren't going anywhere. I only know of Direct2Drive because I used to go to Gamespy now and then, until Fargo left and the whole site went down the toilet. The others I only know of by word of mouth, and though that can be a useful recognition tool, it isn't going to get a service the traffic it needs to stay afloat.
If there is any business model that should be nervous about Steam, it is Gamestop and Best Buy. Odds are the only thing keeping Gamestop afloat is its used games market, and Best Buy...well that's a whole other barrel of fish.
On the critical side, this article feels more like an editorial and not so much a exposition. There really isn't anything substantial pointed out in the article backing up any claims of monopoly. Mere details used to try to justify thoughts of monopoly. I do agree that unless a service actually gets off its ass and provides a solid contender, agencies will start to smell a sense of trust going on with Steam. I hope that day never comes, because when people forget the facts and go into mob violence hoisting the torches and pitchforks, someone is going to get hurt. That's going to be the faithful users of Steam as well as many employees at Valve.
Valve didn't expect Steam to get as big as it is now, merely intending at first to use it to distribute its own games. Yet now it is a giant, and hardly anybody wants to make the effort to create a decent contender. They would rather complain of monopoly and try to tear the giant down. Make off with their own piece of the pie that they did no work on.

Also, I cannot allow arguments that suggest people don't have the internet, or can't afford the internet. If you can't afford internet, then you can't afford a gaming PC nor the games on it. We live in 2010, if you don't have the internet that's your problem and not the publisher's.
Unfortunately there are still cases where internet is not accessible in some locations, short of satellite service which I wouldn't recommend to anyone. But on the other side of the coin, dialup service has been tweaked to be almost as fast as low DSL, you still have to deal with hogging a line as well as getting hung up on. This is a bit of a separate issue, however.
Developers and publishers have the right to want to protect their investments and in this case it's the games the produce. They spend millions of dollars to produce these games and they should want to be able to make a return on that investment so that they can keep making games. I cannot understand why a product like Steam could be looked at so negatively. It has yet to do anything to truly wrong its customers. Where else can you get quality games on sale at ridiculously low prices? You can't, not even Impluse can match Steam's weekend sale prices.
Steam provides publishers with a acceptable method of DRM while also providing services akin to Xbox Live, so IMO it's a win/win.
And yet Ubisoft still enforces its own draconian DRM with copies of Assassin's Creed II and Silent Hunter 5 that are sold over Steam. Ask why and you will figure out another reason how retarded most DRM is. And another reason not to bother with Ubisoft.
It is true Ubisoft's online DRM "service" has a lot of symmetry with Steam's own DRM. But there are glaring differences. If you aren't playing multiplayer, you can play all the other Steam games while Steam is offline. Which means if your internet service goes down, and it will, you can still play all your games you have on Steam(unless they got caught mid-update or even mid-download. Oops.) You can not play either new Ubisoft game if your internet takes a day off.
You do still also have EA's use of SecuROM as well, but these days that merely limits the installs. And unless you have to reformat your hard drives often(and if you do you should just get a new hard drive or quit surfing the pron sites with malware), that shouldn't even become an issue.
 

Woem

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May 28, 2009
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Steam is available for Mac!? I'm so getting an account!

*Edit* Hm they advertise Mac support, but they don't actually support it yet:

Unfortunately, we are unable to offer support for running Steam on a Mac at this time, even when using Bootcamp.

The Mac version of the Steam client will be released in April, until that time we will be unable to provide support for Mac issues.
 

incal11

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Oct 24, 2008
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samsonguy920 said:
You do still also have EA's use of SecuROM as well, but these days that merely limits the installs. And unless you have to reformat your hard drives often(and if you do you should just get a new hard drive or quit surfing the pron sites with malware), that shouldn't even become an issue.
Limited install is retarded , something you can't use as much as you like is not yours; you've been had, it's a rental, not something you bought.
If the game is good enough to be played again and again in the following years, that limited install scheme will hurt .
Though you can say most games using this scheme don't have much replay value.

I agree that Steam is a trojan, I don't want it, I will do without ...
It is a buffet where you are forced to eat for the rest of your life if you go in, and that is definitely EVIL.
 

Weaver

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Apr 28, 2008
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I guess this is what happens when you do it first and do it best.
I never really understood penalizing monopolies from a fundamental standpoint.

Free Market Capitalism not only encourages competition but REQUIRES it. Yet never in it's philosophy did it seem to include the thought a company might just be too good at what it does and too big - to become the only one, thus the government is forced to undermine the capitalist system.

Not that I really care one way or another, I'm not a monopoly, just an observation.
 

Sporge

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Mar 26, 2009
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Here's the thing, Steam is not the only company out there controlling programs you need to play games. Consoles physically limit you to using a companies products if you want to play certain games, and I honestly see very little difference between that and steam except that you can put steam on any standard PC where you are restricted to a specific companies hardware otherwise.
 

Delusibeta

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Mar 7, 2010
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The main problem I think the other distribution platforms have is a lack of killer apps. Sure, Impulse does have Sins of a Solar Empire, Galactic Civilisations and Total Annihilation, but they aren't ever going to be as popular as a Left 4 Dead or a Counter Strike. Look at the sales charts: in both Steam and Impulse exclusives make an extremely strong showing.

Basically, what Stardock needs to do is to create (or buy out) a very, very popular game, and get them to require the Impulse client in some form. Which leads to the second problem: Stardock doesn't like making the client manitory for retail games. Whichis noble of them, but it also makes it less likely for the end user to install and use Impulse.

Right now, the only other distribution platform with access to such large, popular exclusives is Games for Windows Live, thus is most likely to become the Steam challenger. Which sucks.

[Edit] Scratch Total Annihilation from the list of Impulse exclusives, it's now on GamersGate.
 

glenbruton

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Mar 5, 2010
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I think theres one comparison missing here. The comparison to Apple and the fact that users are forced to use Itunes, removing opportunities for competing MP3 stores to really get any exposure. I would think Apples monopoly of digitally disributed music would be an almost perfect comparison to Steam and its 'shop in a trojan horse' ways.

But nooo everybody loves Apple (sorry couldnt help myself! damn Internet Anonymity Theory)
 

Delusibeta

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Mar 7, 2010
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Another point. I compared Impulse, Gamersgate, Direct 2 Drive, GOG and (for the lols) Telltale Games' websites on Alexa. Over the last 3 months, Direct 2 Drive has consistently higher hit rates than all of the rest, and GOG, GamersGate (and Telltale Games) trading blows with each other. Impulse was pretty consistently in last place.
 

ReverseEngineered

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Apr 30, 2008
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capacollo said:
Why not create a committee to derive a standard, with accompanying API, for digital distribution management that can provide the ability for multiple back-end digital distribution channels to provide content. In this way software teams need only interface to one standard compliant plug-in but can easily include multiple distribution channels such as Steam and others for their content. Everybody wins especially the consumers in this case.
In this case, the customers and developers win, but the distributors lose because they become a commodity.

Who makes the gas you put in your car or the milk that you drink? These are commodity goods. Customers don't care who they buy commodities from, as long as they are cheap and convenient. Just like Microsoft, Valve can charge a premium for their services if they can get people locked into their service, but in a commodity market, everybody offers the same service or good, so the only thing they can compete on is price. This automatically drives prices down to a minimum, leaving the producers with just enough profit margin to stay alive.

By making a standard API and allowing anybody to provide the distribution, we make distributors into a commodity. This shrinks the profit margins for all distributors, which is the last thing they want. They would never, in any rational business sense, agree to this.

That said, I think that distribution should be a commodity. After all, what value does a distributor add? They are supposed to be there to get the software from the publisher to me: no frills or gimmicks necessary. Bonus items for games, friend lists, leader boards -- these are all nice features, but not something I require of my distributor. Let there be several distributors and let them compete on speed, reliability, and selection, just like my neighborhood grocery store.
 

-Datura-

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Nov 21, 2009
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If anybody deserves to own the PC gaming market outright, VALVe is the one.

Wannabes keep kicking PC gamers in the balls, then turn around and wonder why we're not tripping over ourselves to part with our dope money en masse. Is anybody paying attention to the fact that VALVe built their empire by bringing such potent novelty and entertainment to the table that it justified a $1000+ hardware investment?

Fuck the haters, fuck the doubters. The industry at large has made it clear that we're nothing but amoral consumptive animals in their eyes. But when their PC beachhead of low-rent paint-by-numbers ambush-marketed hand-me-down-cool gets pushed back out to sea, VALVe will still be here, still revered, still kicking ass. PC gamers take care of their own.
 

the_carrot

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Nov 8, 2007
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Mimsofthedawg said:
this saddens me because I hate steam (and valve in general... but mostly I hate steam). I hate it because my internet sometimes hick ups. When it does that during certain parts of games (like when it auto saves), the games files on the steam server corrupt. Long story short is that I have to buy the game again to get it working.

I've also had about $200 worth of games revert to "Pre-Load" or something like that. or in otherwords, it was downloaded to my computer, but Steam didn't recognize that I had bought it yet...... even though I bought it anywhere from a few weeks to almost a year before.

Valve has completely ruined my faith in them.

Crappy games.

Crappy services.

They equal a crappy company. And one pist off customer.
...You seriously bought a game twice, rather than contant steam billing support? Your locally saved games were affected by your internet connection? Do you download a lot of warez or something?
 

the_carrot

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Nov 8, 2007
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-Datura- said:
If anybody deserves to own the PC gaming market outright, VALVe is the one.

Wannabes keep kicking PC gamers in the balls, then turn around and wonder why we're not tripping over ourselves to part with our dope money en masse. Is anybody paying attention to the fact that VALVe built their empire by bringing such potent novelty and entertainment to the table that it justified a $1000+ hardware investment?

Fuck the haters, fuck the doubters. The industry at large has made it clear that we're nothing but amoral consumptive animals in their eyes. But when their PC beachhead of low-rent paint-by-numbers ambush-marketed hand-me-down-cool gets pushed back out to sea, VALVe will still be here, still revered, still kicking ass. PC gamers take care of their own.
I like this post. I don't think Valve is entitled to own the PC games market, but I can't say I'm unhappy with the service of Steam.
 

Kojiro ftt

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Apr 1, 2009
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This is totally different than the IE debacle, and frankly smacks of alarmist BS from someone who doesn't understand software very well. There is nothing about Steam that prevents other services from being used or that promotes anti-competitive practices. Developers can spend a minimal amount of effort to abstract away everything Steamworks does and easily swap in another service. This would make it possible for one game to be compatible with multiple communication and distribution services.
 

AceDiamond

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It'd be the tiniest monopoly ever seeing as how computer game digital distribution is only 5% of the entire computer game market. While I admit the possibility is certainly there, Direct2Drive is still around, Impulse is still around, and so is GOG. Impulse and GOG, the other two digital content distribution formats I have experience with, have actually grown in the last year. I wouldn't say that Steam has intentionally been crippling the competition. Maybe making things more difficult, but that's the (somewhat unfortunate) nature of competition in a capitalist environment.

The other thing is that if Steam wanted to truly be a monopoly of digital distribution they'd have to do music sales too. Which they do not, but iTunes does and nobody ever complains about them being a monopoly, which is an interesting double standard I think (I can't really name any other online music sales format like iTunes). In fact Apple always seems to mysteriously get a free pass on being a monopoly despite them being even more proprietary and price-gouging than Mircosoft. Also more evil.

Anyway Steam has never done me any wrong personally so I can't find any fault with them or Valve for the service they offer. I know that for others it is not the same case but I've found the valid complaints to be far outweighed by completely outlandish ones.
 

gendoikari

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Jun 26, 2009
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Really, Intel was your best choice as a "good" monopoly? What, with all their business dealings in order to persuade/coerce vendors to stock Intel processors instead of AMD through big rebates, even during the time when Athlon XP easily handed Pentium 4 its ass on a silver platter? Then again, ATI/Nvidia were in a price fixing scandal a year or two ago so none of the three companies are clean.

Oh yeah, and one of the reasons I hate Steam is because you can't resell a game that uses Steam. Even if its a retail copy. For example, I bought Supreme Commander 2 retail 2 weeks ago, and promptly regretted it. Now, I can't give the game back due to using the Steam code. Wonderful.