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Is Valve's Steam Anti-Competitive?
Absolut187 writes "Gearbox Software CEO Randy Pitchford says Steam's domination of digital distribution is 'dangerous,' and exploits small developers. 'Steam helps us as customers, but it's also a money grab, and Valve is exploiting a lot of people in a way that's not totally fair. ... Valve is taking a larger share than it should for the service it's providing. ... There's so much conflict of interest there that it's horrid.' Pitchford's comments came as part of an interview with Maximum PC, and he thinks Valve should spin off Steam to its own company. Is he right? Is there a better answer?"
Update: 10/10 at 02:00 GMT by SS: Randy has clarified his remarks in a comment here at Slashdot. He makes it clear that he likes Steam a lot, and for several reasons, but thinks stronger competition would benefit the industry as a whole.
There's nothing wrong with complaining about monopolies.
No, and I'm usually the one up on a soapbox railing against 'em. But Steam isn't a monopoly. There needs to be a special barrier to entry for a company or industry to be one, and I just don't see it. There's no legal bar, like with government-granted monopolies or Google books. There's no incredible infrastructure needed, just reasonable bandwidth and servers. There's not a "desktop" barrier in which users only benefit from one similar product. There's not even an "I wanted to be the car" barrier that caused so much consternation in my youth. Nobody's accusing 'em of coercion. Popularity alone doesn't a monopoly make.
As a guy who reads, trusts and respects slashdot and the community here, I figured I'd take the time to clarify my position since my intent has been construed out of context. As a gamer, I *love* Valve's games. Hell, I've *made* some of Valve's games! As a customer, I love Steam. I like owning a credential that I can use from any terminal and I like the software. There are other things I like, too. As a businessman, I appreciate the access to Valve's customers that they are providing with Steam. I think there's value to that access. I'm really happy that the Brothers in Arms games are available on Steam and I think Steam customers are really going to dig Borderlands. I have been and hope to be a partner to Valve for many years. From an industry perspective of digital distribution on the PC, I think Steam is doing it the best right now. They're in front and they're really getting value out of their leadership position with digital distribution on the PC. From an industry perspective, I believe that Steam would be even better off if it were a separate company. Trust issues that result from conflict of interest could be mitigated if Steam were a separate company. Take that only as analysis. It doesn't matter how much I trust Valve or how trustworthy Valve actually is - it's just perception within segments of the publishing and development community that, I guess, no one is really talking about. I'm on record in this article saying how I personally trust Valve. I was attempting to comment on perception from some angles of the industry. I also believe that gamers and customers and anyone making games using 3rd party digital distribution systems would be greatly benefited if Steam had some viable competitors. Competition generally drives higher quality products and services at lower prices. I can't see how anyone could argue against that point. If we love Steam, we should hope that as competition appears that it prompts the Steam folks to go faster and better towards improving the service and the pricing. In spite of the implication made in the original source article, I do not want Microsoft to control digital distribution on PC, but believe they (and others) could enter the space if they wanted to and help the competitive landscape and even, perhaps, help to standardize the landscape a bit. I believe that because Valve is a game maker that generally "gets it" I think there's a lot of value to the position they have and I'm really excited about the risk they took and the foresight Valve showed in paving the way there. These are not mutually exclusive feelings and they are all honest and forthright.
You can play when you're not connected to their servers just fine. You don't pay per month, so the "rent" thing doesn't really apply. And once you download a game, you can make your own backups from within Steam just fine.
Your argument fails for the fact that it was the developers choice to use Steam to activate the game. There are tons of games that are on steam and are also available for retail and do not require steam in any way shape or form to run.
I agree, Steam isn't a monopoly, and there are are better (in my opinion) alternatives that have some of the exact same games.
I've bought from Steam, Impulse and Direct2Drive specifically as well as a few other self distributors. So far, Impulse is my favorite, especially for items that they will sell you a box/cd and the download for a few bucks more. Direct2Drive is fine, but you have to pay extra to make sure you can redownload it later. I understand to some extent, you have to pay to get replacement cd's from pretty much anyone, if you can find someone to help you do so. Steam is okay except its constant requirement to talk to servers and that I can't transfer a game to another account, which aren't problems with Impulse.
Clearly there is competition here, Steam has some shitty policies, feel free to bitch about them and shop elsewhere, Steam will either fix it, or have some other reason they own the marketplace or they simply won't own the marketplace, like now.
Steam, Impulse and Direct2Drive are just examples of the Targets, Walmarts and Kmarts of the Internet, just retail stores, although they haven't worked out the details as well as the brick and mortor counterparts.
You can bitch about them about the same way as you can bitch about BestBuy and Walmarts practices, but calling them a monopoly is just silly.
Being silly is a valid slashdot headline/summary however.
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