72% of devs believe Steam has a monopoly on PC games, according to study

A recent study by PC distribution platform Rokky indicates that 72% of PC game developers perceive Steam as a monopoly, with the majority reporting over 75% of their revenue originating from the platform, highlighting significant market concentration and developer reliance. However, the survey of 306 industry executives reveals a strategic shift, with 80% planning to diversify distribution channels beyond Steam within five years, and 75% anticipating at least a 10% revenue uplift from alternative marketplaces, despite concerns over gray market risks. This trend signals an evolving competitive landscape in PC game distribution, potentially impacting revenue streams and market dynamics for publishers and platform providers.

Analysis

A recent study by Rokky, based on a survey of 306 senior industry executives, indicates that 72% of PC game developers perceive Steam as a monopoly, with the platform accounting for over 75% of revenue for the majority of studios. This highlights a significant market concentration and substantial developer reliance on a single distribution channel.

However, the industry is signaling a strategic shift towards diversification, with 80% of developers expecting to utilize alternative channels alongside Steam within the next five years. This move is largely driven by the anticipation of at least a 10% revenue uplift, as predicted by 75% of respondents, from platforms such as the Epic Game Store, Xbox PC Games store, and various E-stores.

Despite the potential for increased revenue and broader reach, developers expressed concerns regarding the gray market and potential loss of control associated with these alternative distribution methods. This evolving landscape, characterized by increased variety and complexity, presents both new opportunities for growth and inherent challenges for publishers and platform providers, as noted by Rokky's CEO.

Key Decisions for Investors

• Investors should closely monitor game publishers' and developers' execution of diversification strategies, as successful expansion beyond Steam could significantly impact future revenue growth and market share.
• Evaluate the evolving competitive landscape among PC game distribution platforms, considering the growth potential of alternatives like Epic Games Store and Xbox PC Games Store and their implications for long-term platform value.
• Assess the profitability and risk profiles of game publishers, balancing the projected 10% revenue uplift from new channels against potential gray market risks and control challenges.