Q&A with Doug Lombardi

[-smash-]

Computer and Video Games has had the chance, again, to sit down with Valve's Doug Lombardi, but this time to discuss what Steam is and what Steam is going to be.

In your opinion, what does the introduction of services like Steam mean for talented independent game developers?[br]Doug Lombardi: Rag Doll Kung Fu was shown at last year's GDC as an independent project that Mark and his friends were pursuing at weekends. It was launched on Steam and soon found its way into retail boxes on many European shelves. Tripwire shopped Red Orchestra: Osfront 41-45 to every publisher under the sun: no takers. The company signed on to offer the game via Steam, issued a press release and publishers started calling; now it's heading to retail shelves as well. These examples (and some more on the way) say it all.

I think he makes a great point, and he makes more than just that one. If you want to see what else Doug has had to say, head on over to CVG and take a look at their "Valve Lets Off Steam" interview.

 

[OvA]

Clever article title, not much new

 

[Gray Fox]

Tell me does anyone have any idea how much valve takes of the profits of a game they release via steam, is it something like 50/50.

 

[Mr. Redundant]

TF2 anyone?

 

[Lak3d]

Tell me does anyone have any idea how much valve takes of the profits of a game they release via steam, is it something like 50/50.

http://www.steamreview.org/?p=16

 

[Crispy]

I think it's probably negotiated between Valve and the game developer on a case by case basis and kept that way. They're probably more flexible with games they know will sell more, or those that undermine their competitors to some degree so are multipurpose, like Red Orchestra.

 

[Asuka]

Interesting.

 

[Apostle11]

Additional payment methods is the most relevant point for me. About time too.

 

[Insano]

http://www.steamreview.org/?p=16

Interesting read!

 

[Pi Mu Rho]

Slightly outdated though - Valve's cut is now 50%

 

[Insano]

Any source for that?

 

[Pi Mu Rho]

No . It's true, though.

 

[boglito]

Any source for that?

Forbes article on VALVe

Some interesting info there. More info about the economy of VALVe than has ever been released I think. A few of the infobits seem to be based on misunderstandings, though.

Short breakdown:

Games sold in stores give VALVe ~36% cut.
Games sold over steam give >80% cut.
Cut is split 50/50 with 3rd party developers.
VALVe operating profit in `05 is (approximately) a whopping USD 55 million.

.bog.

 

[jet jaguar]

TF2 anyone?

You read my mind. Hey, next time I hope someone asks Doug 'TF2 info coming soon' Lombardi if we should stop holding our collective breaths for Valve to move on TF2 or should we just turn our attention and hopes to the Fortress Forever mod team?

 

[Insano]

Who knows what Valve has in mind for E3. I wouldn't be suprised to hear about TF2.

 

[boglito]

Who knows what Valve has in mind for E3. I wouldn't be suprised to hear about TF2.

I would be extremely suprised to hear about anything "new".

.bog.

 

[Varsity]

No . It's true, though.

That's for mods based on Valve's tech. If anything, it means that the margin for licensed developers is even larger than it was back when I wrote the article.

 

[Pi Mu Rho]

Yes it is. Even if that wasn't the case, 40% is still far more than you'll get from a traditional publisher.