How to ensure success of Steam machines

[JAGIELSKI]

The best way to do that is to make producers of big titles support SteamOS. But how to do that? I mean, they think this isn't profitable.

Well, I'm glad you asked.

The problem is... that it isn't profitable. So how Valve could incentivise people in big studios like EA or Ubi to port their games to SteamOS, and, by extension, Linux? They have to make it profitable for them to do so. It's that simple.

But how to make it profitable for them to do a Linux port? The best way would be to Valve to halve their cut for any game that has GOOD* SteamOS/Linux port, for all platforms Steam sells it. Valve will still be making money off the sales, just half as much. But for blockbuster games, Valve halving their cut, would potentially mean additional millions in profit, which will justify doing a Linux/SteamOS port.

*Obviously some quality control would be needed, either by users flagging bad Linux ports or by Valve themselves to avoid situations where differences between Linux and Windows ports are like differences between PC Arkham Knight and PS4 Arkham Knight. In case of bad port, Valve would just revoke them halving their cut.

[JC Denton]

It's an interesting idea, though still dependent on a certain baseline of Linux sales to be profitable. But it does move that baseline up. As a example, if Big Game 1 sells $20 million worth of copies, and 2% would be on Linux, they'd be giving up $400K of revenue currently by not releasing for Linux, or $280K after the Valve 30%. If it's 15% for Linux instead, that bumps up to $340K. Does that extra $60K make it worthwhile to port? It depends on how complex the port would be - if the estimated cost was $200K, it may make it worth the risk, but if $500K, it's not going to help. Still, overall it would encourage more ports.

Put another way, the impact will be small for games with small expected Linux sales, but the higher the % of Linux sales the more this would incentivize Linux ports (and the more it would decrease Valve's revenue). It would help with the chicken-and-egg problem though. Overall though, the share of Linux going from 2% -> 3% would be more of an incentive ($280K -> $420K in the example scenario).

Valve probably has considered this. They may be hesitant to do so since I don't think they actually make much off SteamOS, and the threat of the Windows Store and Metro to Steam turned out to not be as bad as they may have feared when Windows 8 debuted. Still, an interesting idea, and if Valve becomes more concerned about Windows distribution in the future, I could see them doing something like this.

[JAGIELSKI]

Maybe they did consider it, maybe they didn't. That's why I've created this thread - to try and make Valve take note of this idea in case they didn't think about this. Would be nice to see some Valve employee to reply to it, though it is unlikely to happen.

[Satoru]

If a AAA studio doesn't think it's worth making a port now merely halving the margin isn't that compelling. Many studios have entrenched tools and engines that they have no desire to port

The economics of making a Linux port are not just about the margins at sale

[JAGIELSKI]

Originally posted by Satoru:

If a AAA studio doesn't think it's worth making a port now merely halving the margin isn't that compelling. Many studios have entrenched tools and engines that they have no desire to port

The economics of making a Linux port are not just about the margins at sale

Except with such greedy and profit oriented companies like Ubi or EA... they'll do anything for slight profit increase. FFS, they're puting freaking microtransactions in the fully paid games! So I'm positive that such incentive would work for most AAA companies, especially with mostly clueless execs they seem to have.

It'll go something like this after my idea is implemented.

EA Exec #1: Hm, how to make even more $$$?
EA Exec #2: Well, that Steam thing... we have there some games, no?
EA Exec #3: Yeah, but we need to support Origin.
EA Exec #2: Forget about it, well, Valve recently put out that thingy that if you put out a Linux port of something, they'll decrease their cut so you'll be making more.
EA Exec #1: Hm, that would work...
EA Exec #3: But we have to support Origin...
EA Exec #2 & EA Exec #1: OH SHUT UP!

...later that day...

EA Exec #1: You'll port all our games that are on Steam to Linux.
EA Programmer: But this would...
EA Exec #1: You have no say in the matter. Now, get to work.

[Nono5551212]

Sorry to say The Steam Machine was pretty much dead on arrival.

Also Alienware released a Windows Machine running a custom version of Kodi for like $450. That was the price point the Steam Machine Needed to hit. Same specs as some of these steam machines that cost $800+

The fragmented and overpriced execution of the Steam Machine killed it. It was a good idea but not implemented correctly.

The goal should have been to seed the market and take a loss on the hardware and hopefully make up the difference on the software side.

With Windows 8 and Windows 10 angering their user base the way they have been... now would be a perfect time for Linux to conquer the living room with a low cost high performance Linux based HTPC featuring Steam.

Steam could use its money and might to forge lasting partnerships with anti M$ companies and the Linux community as a whole...

Also Valve would need to invest/create tools/APIs ... that they could provide to developers to easily port or create their games for Linux. I'm sure this is not an easy task, but IMO it would be necessary.

It's my understanding that all the consoles take a loss on the hardware and make it up with game sales... Steam should have applied this model.

Also the steam controller would need to be retired.. I respect Valve for thinking outside the box, but this controller is not a valid alternative.

Also M$ has their eye on PC gaming as of late..personally I think they will fail, but if they don't they may slowly erode some of Steams market share.

I know the PC master race will never accept M$, but there are many people (myself included) who just want click play and not worry about specs or modding.. We just want an easy experience and kill an hour or two a day gaming.

Just my opinions.

[cinedine]

Originally posted by Darkhog:

EA Exec #1: Hm, how to make even more $$$?
EA Exec #2: Well, that Steam thing... we have there some games, no?
EA Exec #3: Yeah, but we need to support Origin.
EA Exec #2: Forget about it, well, Valve recently put out that thingy that if you put out a Linux port of something, they'll decrease their cut so you'll be making more.
EA Exec #1: Hm, that would work...
EA Exec #3: But we have to support Origin...
EA Exec #2 & EA Exec #1: OH SHUT UP!

...later that day...

EA Exec #1: You'll port all our games that are on Steam to Linux.
EA Programmer: But this would...
EA Exec #1: You have no say in the matter. Now, get to work.

You somehow manage to miss the point that EA gets 100% of the profits from Origin already. So why should they come back to Steam for 85% of the profits?

Look at the hardware survey by Steam themselves. Still less than one percent uses Linux. And those who do probably use WINE or dual boot anyway. Unless this number changes drastically, it's simply not worth the effort.