how much does steam take from sales

This article analyzes Steam's tiered revenue-sharing model. Initially, Steam takes 30% of game sales, decreasing to 20% after a revenue threshold. The article compares this to other platforms and details how factors like taxes, refunds, and payment

How Much Does Steam Take From Sales?

Steam's revenue share model isn't a fixed percentage. It's a tiered system, meaning the percentage Steam takes depends on the game's revenue. Generally, Steam takes a 30% cut of the revenue generated from a game's sales. However, this changes once a game surpasses a certain revenue threshold. Once a game's total revenue exceeds a specific amount (the exact figure isn't publicly disclosed by Valve), the percentage Steam takes drops to 20%. This means that developers keep a larger share of their earnings as their games become more successful. It's crucial to understand that this is a revenue share, meaning the percentage is calculated on the total revenue after any applicable taxes or payment processing fees are deducted. So, the developer doesn't receive 70% or 80% of the total price paid by the customer, but rather 70% or 80% of the revenue remaining after Steam's deductions.

What Percentage of My Game Sales Does Steam Keep?

As explained above, the percentage Steam keeps depends on your game's overall revenue. Initially, Steam takes 30% of your game's sales. This means that for every $100 in revenue generated, you receive $70. However, once your game's total revenue surpasses a certain undisclosed threshold, Steam's cut decreases to 20%, meaning you would receive $80 for every $100 in revenue. This tiered system incentivizes developers to succeed, rewarding them with a larger share of their earnings as their games grow in popularity and sales. Remember that this is after all fees and taxes are accounted for; the 30% and 20% are percentages of the net revenue you receive after all these deductions.

How Do Steam's Revenue Share Agreements Compare to Other Platforms?

Steam's revenue share model, while tiered, is generally considered competitive within the digital game distribution market. Many other platforms, such as Epic Games Store, also operate on a tiered system, often offering a more favorable percentage (e.g., an 88% cut to developers) during their initial stages to attract developers. However, these offers may be temporary or come with conditions. Other platforms like GOG may have different revenue sharing models entirely, perhaps focusing on a fixed percentage regardless of revenue. Direct sales through a developer's own website will generally result in the highest percentage for the developer, but comes with its own challenges regarding marketing, payment processing, and customer support. Ultimately, the "best" platform depends on individual circumstances and goals, considering factors beyond just revenue share.

What Factors Influence Steam's Cut of Game Sales?

While the core revenue share percentages (30% and 20%) are largely determined by the game's total revenue, other factors indirectly influence the amount a developer ultimately receives. These include:

• Payment Processing Fees: These fees, charged by payment processors, are deducted before Steam calculates its revenue share. This means that higher payment processing fees reduce the overall revenue available for both Steam and the developer.
• Taxes: Various taxes and VAT (Value Added Tax) can also apply depending on the developer's location and the customer's location. These taxes are deducted before the revenue share calculation.
• Refunds: If a customer receives a refund for your game, this reduces the overall revenue, impacting the amount you receive.
• Promotional Discounts: While discounts can increase sales volume, they also reduce the revenue per sale, affecting the overall revenue share calculation. Steam may also offer its own promotional discounts, which further affect your revenue.

In short, while the 30/20% split is the core of Steam's revenue share, the final amount a developer receives is a complex calculation influenced by various external and internal factors.

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