No harm meant. I do think Steam is the golden example of a big business done right. All I’m saying is that there’s room for improvement.
However do we know their full PNL/balance sheet?
We can make an educated guess. Amazon’s S3 charges roughly $0.025 per GB, so an 100GB game would cost $2.50 for Steam to upload to a user. For a $30 game, that’s around ~8.5% or just over 3 downloads before it’s unprofitable.
Obviously Valve isn’t paying consumer level S3 prices, and obviously users can download multiple times. But I would be extremely surprised if they didn’t make a rather large margin on each sale
No harm meant. I do think Steam is the golden example of a big business done right. All I’m saying is that there’s room for improvement.
We can make an educated guess. Amazon’s S3 charges roughly $0.025 per GB, so an 100GB game would cost $2.50 for Steam to upload to a user. For a $30 game, that’s around ~8.5% or just over 3 downloads before it’s unprofitable.
Obviously Valve isn’t paying consumer level S3 prices, and obviously users can download multiple times. But I would be extremely surprised if they didn’t make a rather large margin on each sale
Total fair always room for improvement, no ones perfect.
Appreciate the good discussion!
For storage or for download?