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Gabe Newell ordered to make in-person deposition for Valve v. Wolfire Games lawsuit
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this post was submitted on 24 Nov 2023
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It doesn't matter. The suit is alleging that valve threatened to ban games if they were cheaper on other stores. Thats monopolistic price manipulation, and it's illegal. Valve even pro.ises not to do this in its terms of service - their price parity policy is only supposed to apply to steam keys. That would be fair, because otherwise they couldn't give out keys in the first place. But you can't force devs to list games at the same price and then decide on the cut you will take if you are a monopoly. They will have to prove Valve violated its ToS.
That is only true specifically for Steam keys and is a very important distinction. You can't sell your game cheaper with your free Steam keys on another store cheaper than Steam without giving Steam customers the same discount within a 'reasonable amount of time'.
Publishers/Developers are free to undercut Steam with non-Steam keys on other stores.
From their policy:
In his blog, David claimed that steam reps were threatening to pull his game if he listed lower on other stores.
But did he have proof to back up the claims? Or did he make the claim with no evidence?
I have no idea. We will see in court right?
If that's what they actually did then they deserve to have legal repercussions.
Right. Valve is claiming they didn't, and that they only demand price parity for steam keys. So it will be interesting to see how this plays out.
Honestly, I am not sure what game valve would play to do this. Devs could just make a red and green version of their game to sell on different platforms and price them differently. Meanwhile, to customers, a games price is a games price and developer publisher and distributor are always incentivized to find the highest price a customer is willing to pay through game theory. The market has definitely proven that customers don't care about what percentage of the cut goes to devs. So there is no incentive for anyone to post a game at a lower price than what a customer is wiling to pay on steam as long as steam retains the highest volume. Telling devs to not price the way they want seems very counter productive to being a good retailer, so who knows.
Have they actually done any banning or such? I have seen Phantom Liberty on sale repeatedly since it launch on GOG, but haven't seen it once on Steam.
It will be interesting to watch the suit unfold. David is claiming that Valve de-facto forces the pricing through the threat of de-listing on steam. So he will need to prove it. We don't see many games sell below steam price, but I do think that there is kind of an incentive for devs to have one consistent price across all retailers. At the end of the day, there is a price customers are willing to pay for a given game, and you don't want to lower it on the platform that give you a higher cut of revenue. It's why it would kind of be silly for Valve to engage in this price fixing behavior, but there are plenty of instances where for-profit companies and employees do silly (and illegal) things, so we will see as this case plays out.
The only way steam falls off is if another store beats them on volume, which also means provides a better customer experience than steam. It's a really tall order - how do you get people to move to your game libary management sytem? The only real way is to have an exclusive game that players can't get on steam. That is the core of EGS - the place where you play fortnite. EGS actually makes a lot of sense as long as epic making the hottest game on earth. Half Life 2 was essentially why Valve was able to launch Steam. The issue is that Fortnite is on the decline and EGS just loses money. I don't know how you make enough money to outdo Valve in the near term.