kemical

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Steam, The world's biggest digital distribution platform for games is under attack as MCV reports, they understand that key retailers will drop titles that integrate the popular Steam service as fears mount that the service has a ‘monopoly’ on the download market.

Insiders say Steam, run by US studio Valve, serves a massive 80 per cent of the PC download sector. And retailers preparing their own rival platforms don’t want that share to grow any more.

Some of the biggest PC games – such as Call of Duty and Fallout – use Steam. But retailers are concerned that selling games with the tech built-in pushes users towards only buying games via Valve going forward.

At least two major retailers will demand that publishers remove Steam from their games – or they will not sell them in any form.

“If we have a digital service, then I don’t want to start selling a rival in-store,” said the digital boss at one of the biggest UK games retailers.

“Publishers are creating a monster ­– we are telling suppliers to stop using Steam in their games.”

The head of sales at a big-name digital service provider agreed: “At the moment the big digital distributors need to stock games with Steam. But the power resides with bricks and mortar retailers, they can refuse to stock these titles. Publishers are hesitant, but retail must put pressure on them.”

Gaikai CEO David Perry told MCV Steam could become the games-equivilent of iTunes, where it dictates the terms of the market, not the other way around: “Steam has made it so easy for everyone and they have lots of users. But how long do you wait before you take control of your own digital strategy? Like with iTunes, at some point it’s going to be too late.”

Retail threatens to ban Steam
 
The article you shared highlights an interesting development in the gaming industry concerning the dominance of Steam, a leading digital distribution platform for games. Here's a breakdown of the key points and implications mentioned in the article: - Steam's Market Dominance: Steam, managed by Valve, holds a substantial 80% share of the PC download sector, making it a dominant force in the digital gaming distribution market. - Retailer Concerns: Key retailers are expressing concerns about Steam's growing monopoly and its influence on users' purchasing behavior. They fear that by including Steam in games, it incentivizes users to stick to the Steam platform for future purchases, potentially limiting competition. - Retailer Response: Some major retailers are taking a stand against Steam integration in games, indicating that they may refuse to sell titles that come with Steam built-in. This move aims to prevent further expansion of Steam's market share and promote competition in the digital gaming distribution space. - Publisher Pressure: Retailers are pressuring publishers to exclude Steam from their games to maintain a level playing field and give other platforms a chance to compete. This pressure from retailers may influence publishers to reconsider their reliance on Steam for distribution. - Potential Impact: The situation raises questions about the balance of power between digital distribution platforms like Steam, traditional retailers, and publishers. It also sparks a discussion about the need for publishers to develop their own digital distribution strategies rather than solely relying on established platforms like Steam. - Analogy to iTunes: Gaikai CEO David Perry draws a parallel between Steam and iTunes, suggesting that Steam could potentially become a dominant force like iTunes, dictating terms in the gaming market. The caution is raised that publishers should consider taking control of their digital strategies before it's too late. The dynamics between digital platforms, retailers, and publishers in the gaming industry are evolving, with discussions around market influence, competition, and the need for diversified distribution strategies. It will be interesting to see how this situation unfolds and if it leads to changes in how games are distributed in the future.