Gabe Newell: The Next Videogame Billionaire?

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Publishers get a 70% profit margin?

So then why the fuck are digital prices on par with physical prices? If its cheaper to distribute, and earns more money, shouldn't the price of the stuff be a little lower?

Irridium:
Publishers get a 70% profit margin?

So then why the fuck are digital prices on par with physical prices? If its cheaper to distribute, and earns more money, shouldn't the price of the stuff be a little lower?

Because when you factor in how much PC games get pirated, getting it for $10 less than console owners is a fair trade.

Low Key:

Irridium:
Publishers get a 70% profit margin?

So then why the fuck are digital prices on par with physical prices? If its cheaper to distribute, and earns more money, shouldn't the price of the stuff be a little lower?

Because when you factor in how much PC games get pirated, getting it for $10 less than console owners is a fair trade.

They're starting to go to $60.

Well EA/Activision games are.

And besides, piracy is also big on consoles, so thats not that great of an excuse.

Irridium:

Low Key:

Irridium:
Publishers get a 70% profit margin?

So then why the fuck are digital prices on par with physical prices? If its cheaper to distribute, and earns more money, shouldn't the price of the stuff be a little lower?

Because when you factor in how much PC games get pirated, getting it for $10 less than console owners is a fair trade.

They're starting to go to $60.

Well EA/Activision games are.

And besides, piracy is also big on consoles, so thats not that great of an excuse.

Pirating is about 1,000% easier on the PC.

Low Key:

Irridium:

Low Key:

Because when you factor in how much PC games get pirated, getting it for $10 less than console owners is a fair trade.

They're starting to go to $60.

Well EA/Activision games are.

And besides, piracy is also big on consoles, so thats not that great of an excuse.

Pirating is about 1,000% easier on the PC.

Still, there are better ways to go about combating piracy then stupid DRM and raising prices.

WaaghPowa:
Good for Gabe, out of all the Developing companies Valve has got to be the best of them all.

70% protif margin on steam? With a profit margin like that, why wouldn't someone use steam to sell their game?

That comes mainly from the lack of need to do a physical media production run for the game. It does cost quite a bit to get several hundreds of thousands of disks pressed for the physical media production (And yes; they are pressed and not burned). Without the need for capital to produce physical media the extra 30% goes straight back to the publisher rather than a cut of it going to the guys that made the disks!

People always have groups they feel were more artists who did better critically than financially. I always felt that in gaming those groups were Valve and Team Ico, both companies creating the apex of multiplayer, platformer, and action games, but clearly i was wrong.

4 billion? Goddamn! Hey Gabe, do you need a personal doctor who can whisper good game ideas in your ears?

Irridium:

Low Key:

Irridium:

They're starting to go to $60.

Well EA/Activision games are.

And besides, piracy is also big on consoles, so thats not that great of an excuse.

Pirating is about 1,000% easier on the PC.

Still, there are better ways to go about combating piracy then stupid DRM and raising prices.

Wait, hold on bro. Are you telling me that you don't take advantage of Steam's endless amount of sales that mark everything WAY cheaper than anything a retail store could do? A vast majority of games are available on Steam, and they are the ones controlling the DRM which people don't seem to mind.

Tom Goldman:
So while Newell is probably earning a mint for his time, it's a mint that goes back into gaming as a whole.

"Finally monsieur, a wha-fer thin mint."

Couldn't resist. And good for him, he's built a good company with reliable games and great service.

this isnt my name:

congratulations. you made me pee myself with Laughter. +9000 internets for you

on a more serious note, yes Gabe probably will become the next billionaire of games, but, hey, he deserves it.

Okay, that bit at the end with the Victoria's Secret thing was absolutely hilarious.

Hey Gabe. Imagine how much more money you would make if you got HL2 Episode 3 out. That, plus now that Duke Nukem Forever is coming out, we need a new game to make vaporware jokes about and you don't want to win that title, do you?

Fuchs Dystrophy?

The 11 year old in me wants to now how it's pronounced.

Low Key:

Irridium:

Low Key:

Pirating is about 1,000% easier on the PC.

Still, there are better ways to go about combating piracy then stupid DRM and raising prices.

Wait, hold on bro. Are you telling me that you don't take advantage of Steam's endless amount of sales that mark everything WAY cheaper than anything a retail store could do? A vast majority of games are available on Steam, and they are the ones controlling the DRM which people don't seem to mind.

No, I'm just complaining about the stupidity of game publishers. Yes the sales are nice, very nice, but I can't say I'm too happy about games slowly rising on price when everything is showing they should actually be cheaper.

thefreeman0001:
the escapist giving you stock advice :P seriously buy shares in valve people its only going up!

...The thing is, the company isn't listed in the stock exchange, and they have good reasons for that.

OT: Seems pretty cool; judging by what I've seen thus far, it seems a decent portion of their considerable money pile has been dumped on the Portal 2 team, and good thing too. But Episode 3 would be nice too, Valve, just saying.

Tom Goldman:
It estimates that Steam, the digital distribution platform with over 30 million users, owns 50-70% of the $4 billion download market, which exceeded physical PC unit sales in 2010 for the first time.

It would be worth to add that sales of digital units only exceed physical ones in North America (even the Forbes article mentions that the statement is based on a NPD Group report, which only covers North America). In Europe, for example, the situation is entirely different (read the last paragraph). Furthermore, while digital distribution has exceeded retail in terms of raw units moved in North America, retail still holds the greater revenue share (this based off of that same NPD Group report).

Anyway, good for Newell. Although I am not personally a fan of Steam, I can certainly see why some people like it, so I can't say that their success isn't well deserve. Also, while I don't like Valve as a digital publisher, I love them as a developer.

You keep doing what you are doing, Newell. Just...have more consideration for us who prefer retail, will you?

Good for Gabe, though the box/key thing is bull.

Valve/Steam, that independantly owned hero of the game creation/distribution community. I'm a long term fan and customer, since launch, and have been very satisfied on both accounts.

mjc0961:
Hey Gabe. Imagine how much more money you would make if you got HL2 Episode 3 out. That, plus now that Duke Nukem Forever is coming out, we need a new game to make vaporware jokes about and you don't want to win that title, do you?

Oh, I think they do...

Thousands of people making references to their game every day? That's almost never a bad thing.

* Slow congratulatory applause *

Dammit, now I want to replay half-life. That screenshot brought me back to that chapter with that old enemy model... Also it's no surprise that Valve is that wealthy all around yet almost a secret since they rarely release sales reports and actual figures since they let other people like forbes do it :D

Well they have their shortcomings but Valve is a more deserving company than many others given their efforts.

Although I bet they made it more on Steam than anything. I mean... Valve time would be completely invalid if it wasn't for Steam bringing in a constant supply of cash. No other developer could get away with waiting that long on games and putting that much time into free content (well not so free anymore with TF2's example, but all through the class updates)

Gabe seems like a fun guy too hang around with.

I know that Escapist is known for its large population of Valve fanboys... but it's really, really hard not to be one. When they screw up, they don't say "fuck you, deal with it", they say "sorry, here's a bunch of free stuff".

Too bad all this money stops Valve from releasing games on time.

this is what happens when you're head of company that combines quality products, good customer relations, and absolutely genius marketing schemes.

That's a lot of fried chicken.

Demonicdan:
I think he deserves success, who would you rather give your money Gabe or Steve Jobs?

not Bill Gates!

(it's okay, he doesn't want it now anyway)

Irridium:

Low Key:

Irridium:
Publishers get a 70% profit margin?

So then why the fuck are digital prices on par with physical prices? If its cheaper to distribute, and earns more money, shouldn't the price of the stuff be a little lower?

Because when you factor in how much PC games get pirated, getting it for $10 less than console owners is a fair trade.

They're starting to go to $60.

Well EA/Activision games are.

And besides, piracy is also big on consoles, so thats not that great of an excuse.

Acti-Blizz games have been at $60. WC3? $60. WoW at release? $60.

At all the people saying VALVe has faults... name one? (And don't say delaying a game is a fault, because I know damn well you'd bitch about them being "released too early" if it was released on time) The only fault I can think of is the whole L4D2 ordeal, but L4D2 had more than enough content to justify a sequel so...

VALVe gives us:

-Amazing deals
-Good social tool
-Amazing games
-Funny developers

I think Gabe has more than earned his money.

Inovation should be rewarded.

Bags159:

Irridium:

Low Key:

Because when you factor in how much PC games get pirated, getting it for $10 less than console owners is a fair trade.

They're starting to go to $60.

Well EA/Activision games are.

And besides, piracy is also big on consoles, so thats not that great of an excuse.

Acti-Blizz games have been at $60. WC3? $60. WoW at release? $60.

At all the people saying VALVe has faults... name one? (And don't say delaying a game is a fault, because I know damn well you'd bitch about them being "released too early" if it was released on time) The only fault I can think of is the whole L4D2 ordeal, but L4D2 had more than enough content to justify a sequel so...

VALVe gives us:

-Amazing deals
-Good social tool
-Amazing games
-Funny developers

I think Gabe has more than earned his money.

Think I can answer the second part pretty decently. The only issues I have are little ones, but they're been with the service since Half Life 2 and I cannot for the life of my figure out why they're still here.

1) When you own a game, you can choose to have it update never, or update whenever. But nothing else. Why can't I schedule it to update at a set time? They could at least let me choose how many things update at once, so yesterday doesn't happen again(4 things started updating AT ONCE. Bringing my 1mb connection to its knees). Just at least let us choose how many things can update at once. Would be great.

2) When you have a game set to never update, keep it that way. I can't tell you how many times I set New Vegas to never update, and later in the day I see it is set to "always update". Just ridiculous.

Also, when it is set to never update and an update becomes available, let me know somehow. As it is now, you have no way of knowing. Just put an asterisk next to the game that has an update available. Hell, I could program that in.

Yes these are very small issues, but they've been issues since Half Life 2. Thats 7 years these small, easily fixable issues have been here. Come on Valve, your better than this. I know it.

Also, a side note, some people don't care for the perks Steam gives. They won't use them, they have no need for them. For this reason, Steam offers nothing, its just another DRM service, and they don't like being forced to use it to play their games. Yes they can avoid it, but more and more are going Steamworks, which isn't good for them. They don't really hate it, they just don't care for it and would rather not use it, since it offers nothing for them. Which is understandable. If I was forced to use a service that offered nothing for me in order to play my games, I'd rage about it to.

Irridium:

Bags159:

Irridium:

They're starting to go to $60.

Well EA/Activision games are.

And besides, piracy is also big on consoles, so thats not that great of an excuse.

Acti-Blizz games have been at $60. WC3? $60. WoW at release? $60.

At all the people saying VALVe has faults... name one? (And don't say delaying a game is a fault, because I know damn well you'd bitch about them being "released too early" if it was released on time) The only fault I can think of is the whole L4D2 ordeal, but L4D2 had more than enough content to justify a sequel so...

VALVe gives us:

-Amazing deals
-Good social tool
-Amazing games
-Funny developers

I think Gabe has more than earned his money.

Think I can answer the second part pretty decently. The only issues I have are little ones, but they're been with the service since Half Life 2 and I cannot for the life of my figure out why they're still here.

1) When you own a game, you can choose to have it update never, or update whenever. But nothing else. Why can't I schedule it to update at a set time? They could at least let me choose how many things update at once, so yesterday doesn't happen again(4 things started updating AT ONCE. Bringing my 1mb connection to its knees). Just at least let us choose how many things can update at once. Would be great.

2) When you have a game set to never update, keep it that way. I can't tell you how many times I set New Vegas to never update, and later in the day I see it is set to "always update". Just ridiculous.

Also, when it is set to never update and an update becomes available, let me know somehow. As it is now, you have no way of knowing. Just put an asterisk next to the game that has an update available. Hell, I could program that in.

Yes these are very small issues, but they've been issues since Half Life 2. Thats 7 years these small, easily fixable issues have been here. Come on Valve, your better than this. I know it.

Also, a side note, some people don't care for the perks Steam gives. They won't use them, they have no need for them. For this reason, Steam offers nothing, its just another DRM service, and they don't like being forced to use it to play their games. Yes they can avoid it, but more and more are going Steamworks, which isn't good for them. They don't really hate it, they just don't care for it and would rather not use it, since it offers nothing for them. Which is understandable. If I was forced to use a service that offered nothing for me in order to play my games, I'd rage about it to.

I'll grudgingly give you the DRM complaint, but I've never had it update a game I've told it not to(so this sounds like a personal problem) and I don't see the lack of an update schedule as a downside, as nothing else has it. I also really don't see the need for one.

Bags159:

I'll grudgingly give you the DRM complaint, but I've never had it update a game I've told it not to(so this sounds like a personal problem) and I don't see the lack of an update schedule as a downside, as nothing else has it. I also really don't see the need for one.

When you have a slow internet, and are doing something, having Steam automatically download a large-ass patch is a real pain in the ass. And yes nothing else has it, but thats how you get a leg up on the competition. You do what they're not doing, you offer what they don't offer.

Irridium:

Bags159:

I'll grudgingly give you the DRM complaint, but I've never had it update a game I've told it not to(so this sounds like a personal problem) and I don't see the lack of an update schedule as a downside, as nothing else has it. I also really don't see the need for one.

When you have a slow internet, and are doing something, having Steam automatically download a large-ass patch is a real pain in the ass. And yes nothing else has it, but thats how you get a leg up on the competition. You do what they're not doing, you offer what they don't offer.

That's not a good reason to hate it though. Dislike? Maybe. Hate? No. I still don't see the point of a download schedule, could you enlighten me? I've never been sitting around and have the thought, "wow if I could schedule my downloads this would be awesome" occur to me.

Bags159:

Irridium:

Bags159:

I'll grudgingly give you the DRM complaint, but I've never had it update a game I've told it not to(so this sounds like a personal problem) and I don't see the lack of an update schedule as a downside, as nothing else has it. I also really don't see the need for one.

When you have a slow internet, and are doing something, having Steam automatically download a large-ass patch is a real pain in the ass. And yes nothing else has it, but thats how you get a leg up on the competition. You do what they're not doing, you offer what they don't offer.

That's not a good reason to hate it though. Dislike? Maybe. Hate? No. I still don't see the point of a download schedule, could you enlighten me? I've never been sitting around and have the thought, "wow if I could schedule my downloads this would be awesome" occur to me.

People hate Steam because its DRM, essentially controls the DD business, or the just don't like Valve. Maybe all of the above.

I just slightly dislike it for the reasons I'm mentioning.

As for the schedule thing, it'll help those of us with not so great connections. So Steam doesn't update during when we are probably doing something. Or at least not download multiple things at once, but do it one at a time.

Its especially a pain when there are two people with the same Steam games, so Steam would download everything for both of you at once, which does not lead to good things.

manythings:

hazabaza1:
And around half of it is from people buying TF2 keys.

What works works. It's not horse armour.

No, it's a gamble at what may be the horse armor you want, but probably won't be. I don't share the hostility towards the Mannconomy, but even I think the crate/key system is just cruel. See the VGCats comic somebody posted.

Soylent Bacon:

manythings:

hazabaza1:
And around half of it is from people buying TF2 keys.

What works works. It's not horse armour.

No, it's a gamble at what may be the horse armor you want, but probably won't be. I don't share the hostility towards the Mannconomy, but even I think the crate/key system is just cruel. See the VGCats comic somebody posted.

People don't gamble to win (well they do but if they ONLY gambled to win they'd gamble once and realise it wasn't paying off) they do it for the rush the dream of millionaire potential. You won't win the lottery just buying a ticket for every draw for the rest of your life.

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