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Discord Store To Offer Developers 90 Percent of Game Revenues (arstechnica.com)

DarkRookie2 shares a report from Ars Technica: Discord has announced that it will start taking a reduced, 10-percent cut from game revenues generated on its online store starting next year, one-upping the Epic Games Store and its recently announced 12-percent cut on the Epic Games Store. The move comes alongside a coming expansion of the Discord Games Store, which launched earlier this year with a tightly curated selection of games that now includes roughly 100 titles. The coming "self-serve publishing platform" will allow developers "no matter what size, from AAA to single-person teams" to access the Discord Store and the new 90-percent revenue share. "We talked to a lot of developers, and many of them feel that current stores are not earning their 30% of the usual 70/30 revenue share," Discord writes in the announcement. "Because of this, we now see developers creating their own stores and launchers to distribute their games instead of focusing on what's really important --making great games and cultivating amazing communities."

"Turns out, it does not cost 30% to distribute games in 2018," the announcement continues. "After doing some research, we discovered that we can build amazing developer tools, run them, and give developers the majority of the revenue share."

47 comments

  1. This is worth waiting for by BringsApples · · Score: 1, Interesting

    I'm personally interested to find out how this turns out. It may lead to innovative ways to tackle other issues in our society.

    --
    Politics; n. : A religion whereby man is god.
    1. Re: This is worth waiting for by Anonymous Coward · · Score: 0

      Too funny. I got a 400 error on the citation FYI

    2. Re:This is worth waiting for by Anonymous Coward · · Score: 0

      "It may lead to innovative ways to tackle other issues in our society." - TF are you smoke-tackling?

    3. Re:This is worth waiting for by rmdingler · · Score: 2

      GP is being facetious. When the free market works properly, unencumbered by excessive government regulation, healthy competition encourages this outcome.

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

    4. Re:This is worth waiting for by Anonymous Coward · · Score: 0

      Stop shitposting, what ways? what issues? Why are you personally interested? Are you a game developer or a shit poster? Make up your mind!

    5. Re:This is worth waiting for by Anonymous Coward · · Score: 0

      Healthy competition encourages getting rid of the competition. That is what a free market does. If you want healthy competition, the last thing you want to do is let the market do whatever it wants to do.

    6. Re:This is worth waiting for by rtb61 · · Score: 1

      In this the error is, price is not everything. How about with my downloaded game, I want to run which ever the patch I want to and not have shitty patches forced into the game I bought, looking at bloody Steam. The can waffle all they want how they will serve game publishers cheaply, I don't give one fuck about that. The price I pay and the services I get, is all that counts, screw the developers and the publishers. I want service from the game store, I want punishments for shitty developers and publishers, I want to choose which update to run, I want advertising free games, don't deliver that and I don't give one fuck about what you charge developers and publishers, I wont be buying off you. You are selling services to me not to fucking them, they are selling product to you, that you sell to me, with the service I demand.

      --
      Chaos - everything, everywhere, everywhen
    7. Re:This is worth waiting for by thegarbz · · Score: 1

      I'm personally interested to find out how this turns out. It may lead to innovative ways to tackle other issues in our society.

      This will turn out the only way possible: Expect every game to come out on it's own publishers store uniquely. We already saw that with the last Slashdot announcement about the Epic store. Greater choice for all they said! Only a few days later the list of exclusives, and the list of games being pulled from Steam started being released.

      How much longer can I see Disney content on Netflix? On and how's things going in America, where your latest Startrek is only available in 1080p with stereo sound instead of 4K and surround sound because Netflix can't carry it due to exclusivity to that other service there?

      Competition and choice is good for consumers, but this does not create either, and while we're not subscribing via a monthly fee I do wonder about the future of games which I bought on a platform don't have installed on my machine but then do want to play sometime in the future. Will it still be available to me? Apple's experience with movies recently says no.

    8. Re: This is worth waiting for by Anonymous Coward · · Score: 0

      I just read how fat you are. You're a whopper.

    9. Re: This is worth waiting for by Anonymous Coward · · Score: 0

      What are you whining about?

      "B-b-but I want Netflix to be the sole monopoly distributor of content, and charge me $499 per year because there cannot be any competition! Competition bad!"

      Do you even realize how fucking stupid you sound?

  2. more than 50 by Presence+Eternal · · Score: 1, Funny

    I'm not a mathematician, but I suspect 70% of something is still a majority of that thing.

    1. Re:more than 50 by Anonymous Coward · · Score: 0

      The majority of the 30% cut.

    2. Re:more than 50 by Anonymous Coward · · Score: 0

      They're probably referring to other costs. Epic's take is 5% (Unreal), Houdini I think is 3%, etc.

  3. a little unfair by Anonymous Coward · · Score: 0

    Discord tends to sell games that cost a lot more than the $1/$2 a lot of phone games cost. So phone app stores can't really afford to take only 10% of $1 because that wouldn't even cover the credit card transaction fee.

    1. Re:a little unfair by sexconker · · Score: 1

      This is about Steam and the Epic Games Store.

      Steam takes 30%, the same as the historical retailer average. Remember when one of the selling points of digital distribution was that it would be cheaper?

      Epic made their own infrastructure to handle Fortnite, and decided that they, too, could run a store. They decided 12% would be profitable. And if you use their game engine and publish on their store, they waive the 5% fee for using the engine.

      Valve got wind of this and, just before Epic's new storefront was publicly unveiled, offered up a laughable tiered structure where they would tale smaller cut if you reached 10 million or 50 million in sales. That smaller cut was still bigger than the 12% Epic is taking. (And my guess would be that it's progressive, like taxes, so Steam takes 30% until you reach the next tier, then the lower cut only on sales above the threshold.)

      TL;DR: Steam is dead. Discord is trying to bandwagon on Epic's win.

    2. Re:a little unfair by Anonymous Coward · · Score: 0

      Epic's win? AHAHAHAHAHAHAA right.

      Epics has just created a console setup now for non-aaa games. Indies are making their games exclusive to the epic store, which is the dumbest thing. Steam still has the largest percentage of the market, they should release their games on as many store fronts as possible.

      What Epic doesn't offer that Valve does is Steamworks, also Epic is 40% owned by Tencent, while Valve is still very much a private company who's sole purpose (besides to sell games) is to help further innovate PC gaming. Besides release Unreal Engine 4 20 years ago, what has Epic (and Tencent) really done to move the gaming industry forward? Tencent owns a shit ton of mobile games companies and is a big proponent of lootboxes and pay to win mechanics.

    3. Re:a little unfair by Luckyo · · Score: 1

      Steam is the incumbent, where people have amassed large libraries of games and that has things like the messaging system and friends, so it also has some social control.

      The fight is barely starting. I'm wouldn't dismiss Valve any time soon. Discord's strength is that it has a better messaging system that has supplanted steam friends for many gaming social circles. Epic's strength is a single title that is played by a very large and very specific category of players that haven't actually shown much interest in other kinds of games so far as well as a much stronger contact base among developers as an experienced engine developer.

      So every party has unique strengths. The fight is on. We'll see how it goes.

    4. Re:a little unfair by Anonymous Coward · · Score: 0

      Steam takes 30%, the same as the historical retailer average. Remember when one of the selling points of digital distribution was that it would be cheaper?

      Historically, the retailer and distributor took a larger cut than 30%, closer to 50-70% of the MSRP. Developers took a royalty after the publisher made back its cost for marketing and distribution. Publishers are getting far more for their products today that they were 15 years ago. The average publisher's gross margin of the retail price vs the gross margin of their revenue for physical goods is 55% and 70%, respectively. For digital goods, the numbers are 70% and 100%.

      The issue is publishers want as close to 100% of the purchase price as they can get.

    5. Re:a little unfair by Anonymous Coward · · Score: 0

      Epic does have more of an advantage than you are letting on.

      Epic is trying to do with Fortnite money what Valve did with their Half-Life money. Back then Valve was the big player and now Epic is. However, the market has ballooned; good for Epic, and there are multiple competitors; bad for Epic. People do like the new hotness, whatever that may be. That's how Discord took off. No better than half a dozen other free services, but its new and exciting and they paid streamers to say it's good. Now Epic is doing the same with Fortnite.

      But the big one, the one that is Valve's Achilles, is if Epic chooses to take a page from GOG. Contact game publishers and strike a deal to duplicate license keys on their platform that were bought on competing platforms. If Epic does that, and why wouldn't a game publisher not take that deal and get their userbase on to a more profitable platform, the incumbent advantage that is Valves sword and shield will be gone.

      Discord can do the same of course, but not having any games of its own, it will have to find more innovative ways to pull customers. As has already been eluded to, everything Discord is has been done before and is easily replaced. The specific franchise Fortnite, not so much.

    6. Re:a little unfair by Anonymous Coward · · Score: 0

      While I like competition and hope that it brings prices down all around, I'm not holding my breath. Its thanks to Steam/Valve taking 30% that they can offer discounts on games so often and so deeply. 10% ain't gonna let that happen, don't expect to see the same discounts on games anytime soon. GoG has been offering decent discounts as well for a long time now and no one is mentioning them at all. Amazon/Twitch does it too (and with such an insane amount of money they even give games away for free. My entire library from them is nothing but games given away to Prime members and is over 50 titles now, some of which are genuinely good).

      Developers often overprice their games and that hurts them, I don't think they put much effort into it beyond "if I sell X amount of games at Y price, I'll recoup my development Costs in Z days and become profitable" a lot of the time.A lot of new games that come out (not AAA titles) are very over-valued and the only reason to pick up something that you can play for 10-20 hours before its fully explored (and has almost no replay value) is when its under 10 bucks.

      I think Devs are gonna learn a hard lesson when they don't see units moving as fast as sellers on higher-cut platforms and find out that any price discounts are going to come out of their side and none from the platform's side.

    7. Re:a little unfair by Anonymous Coward · · Score: 0

      "Remember when one of the selling points of digital distribution was that it would be cheaper?"

      Yeah it was a lie back then and it will be a lie with these new distribution systems as well - as far as gamers are concerned.

      The devs/publishers/stockholders will take all 20% of that money saved and the games will still be as expensive for you and me as they've come to be. Once the bar goes up, it doesn't come back down.

      Put it this way, the devs wouldn't be so hardpressed to switch to either Dice or Discord if they weren't going to make more money regardless of where they went.

      And to be honest I fully expect this 90/10 split to be "reevaluated" every year as they find "oh my, it's a bit more expensive than we thought it would be!! people actually want to download what they bought and those things are getting larger and larger!!"

  4. missing tag.. by Anonymous Coward · · Score: 0

    it does not cost 30% to distribute games

    #noshitsherlock

  5. This is a good thing... by Anonymous Coward · · Score: 0

    Maybe Valve starts to hurt from all the competition, and goes back to making games?

    HL3, CONFIRMED!

    Bah, who am I kidding...

    1. Re:This is a good thing... by Luckyo · · Score: 1

      Valve does keep making games. It hasn't been a month since their last game's release. It's just that they're increasingly divorced from the consumer side on gaming, being deeply specialized in maximally monetizing people rather than satisfying their needs, so their latest offering is just awful when contrasted against competition.

      Citation: Artefact.

  6. So waht's the restrictions? by tlhIngan · · Score: 1

    90/10 sounds great, but there has to be restrictions.

    Because it would mean the store loses money if I were to offer games for $1 each (credit card would take a good 30% of that). Or if I offer it for free with a bunch of $1 items, again each purchase would cost a good 30%.

    So unless they're going to restrict games to costing at least $5 or DLC costing at least $5, or basically approve only good games where people are willing to pay more for,

    Of course, these make sense in situations where apps and such generally cost several dollars and where you don't have a huge proliferation of 99 cent apps where 30% barely covers the cost.

    1. Re:So waht's the restrictions? by mentil · · Score: 1

      Alternately, they'll do what the Playstation Store et al (at least used to) do, and have a 'wallet' that you recharge, making an e.g. $25 credit card transaction, and then deduct those $1 games from that with no further fees. Or they're betting on people buying multiple games at once. That said, looking through their games, I don't see a single one selling for less than $8 (that's not F2P).

      --
      Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.
    2. Re:So waht's the restrictions? by Mashiki · · Score: 1

      Ever hear of Desura? Yeah, they offered basically the same 90/10 split. They don't exist anymore, and were supposedly the big up and comer and whatnot. In JP game markets, the opposite applies, it's 10/90 for titles under $5. Which dissuades fly-by-night and shitty developers from making a game that operates at the bare minimum.

      --
      Om, nomnomnom...
  7. And so it begins... by Areyoukiddingme · · Score: 1

    Begun the digital distribution wars have.

    Now we can enjoy the same Balkanization that video content has been descending into.

    Someday, somehow, some way, someone needs to design a federated distribution system for digital media. So all the vendors can have their own little stores with their own little terms and conditions and their own individual rates and exclusives and what-have-you, and the buyers can have one friendly interface.

    Won't happen, because someone's precious branding. But a boy can dream.

    1. Re:And so it begins... by iampiti · · Score: 1

      Yeah, the proliferation of digital game distribution services is getting bothersome.
      Currently in the Epic one they're giving away a pretty well known game to entice people to install their downloader/storefront. I'll just concentrate on a few big ones and ignore the rest. I don't care if I'm gonna miss some games I already legally own more than I can play anyway.

  8. I have reasonable confidence when I buy on Steam by JMZero · · Score: 3, Informative

    ..that I will continue owning that game, at least to the extent you can own a digital object. That is the core value proposition they give me. Everything else is gravy (friend list, chat, game discovery, refunds, cloud saves, etc..).

    Mostly, I just want to know that when I plunk down money on a game, it will stay in the list of games I can play for a reasonably foreseeable future. I trust Valve for that because they have some track record, and over the course of many years their terms have not significantly degraded.

    I'm also just generally loath to install any new store or launcher thing. I don't want a Ubisoft account or a Microsoft store account or an Origin or Epic account. I barely tolerate having a Blizzard account.

    Anyway, I don't wish these guys any ill will and I think Valve could use the competition - but I don't think the world can support too many stores over the long term.

    --
    Let's not stir that bag of worms...
  9. apple needs to lower there cut or add 3rd party st by Joe_Dragon · · Score: 1

    apple needs to lower there cut or add 3rd party stores

  10. Re:I have reasonable confidence when I buy on Stea by Luckyo · · Score: 1

    Then discord has a massive advantage for you, because Discord has become the de facto voice communication and text communication/social networking platform for all things gaming. So you'll have discord installed regardless if you're in almost any kind of gaming community with other people.

  11. Re:I have reasonable confidence when I buy on Stea by Anonymous Coward · · Score: 0

    While technically true, I personally dont use all of the features of everything I have installed. Especially if I have something else installed that does that feature better. (Steam is better for games, Discord is better for chat)

  12. Re:I have reasonable confidence when I buy on Stea by Anonymous Coward · · Score: 0

    Until the next version comes along. Is isn't like they are the first "standard" in gaming communication.

  13. Re:I have reasonable confidence when I buy on Stea by Anonymous Coward · · Score: 0

    Nah, man. Discord is unproven and untrustworthy. Steam is letting any legal content on their platform, and discord is partnered with the hate group SPLC.

  14. Damn by nehumanuscrede · · Score: 1

    This is how you go from a decent chat and voip client, to a bloated behemoth.

    Can not wait :/

  15. Re:I have reasonable confidence when I buy on Stea by Anonymous Coward · · Score: 0

    Nah, man. Discord is unproven and untrustworthy. Steam is letting any legal content on their platform, and discord is partnered with the hate group SPLC.

    You need to spell out your acronym if you want people to know who you are talking about. Most people who know SPLC know it as the Southern Poverty Law Center - aka the lawyers that try to keep poor rednecks and brown folk from getting harassed TOO much, because then that special snowflake treatment corrupt cops expect from their "brothers" bleeds into the middle class neighborhoods and some of those workers bees can actually tell the higher ups about it.

  16. Re:I have reasonable confidence when I buy on Stea by HeckRuler · · Score: 1

    I have reasonable confidence when I buy on Steam that I will continue owning that game, at least to the extent you can own a digital object.

    And that extent is near-zero. Steam games come with DRM. You don't own the things you bought. Valve allows you to do some things because they feel like it. They have a track record and they're flush with cash at the moment, but if that changed they could simply pull the plug and walk away. They could also selectively screw over individuals. If your account is banned you cannot log in, download, or play any of your games. As a policy, they will not tell you why your account is banned, simply stating you violated their terms of service.

    What are their terms of service?

    This Steam Subscriber Agreement ("Agreement") is a legal document that explains your rights and obligations as a subscriber of Steam from Valve Corporation, a corporation under the laws of the State of Washington, with its registered office at 10400 NE 4th St., Bellevue, WA 98004, United States, registered with the Washington Secretary of State under number 60 22 90 773, VAT ID No. EU 8260 00671 (“Valve”). Please read it carefully.

    SECTION 11 CONTAINS A BINDING ARBITRATION AGREEMENT AND CLASS ACTION WAIVER. IT MAY AFFECT YOUR LEGAL RIGHTS. PLEASE READ IT. IF YOU ARE A CUSTOMER WITH RESIDENCE IN THE EUROPEAN UNION, SECTION 11 DOES NOT APPLY TO YOU.

    1. REGISTRATION AS A SUBSCRIBER; APPLICATION OF TERMS TO YOU; YOUR ACCOUNT

    Steam is an online service offered by Valve.

    You become a subscriber of Steam ("Subscriber") by completing the registration of a Steam user account. This Agreement takes effect as soon as you indicate your acceptance of these terms. You may not become a subscriber if you are under the age of 13. Steam is not intended for children under 13 and Valve will not knowingly collect personal information from children under the age of 13.

    A. Contracting Party

    For any interaction with Steam your contractual relationship is with Valve. Except as otherwise indicated at the time of the transaction (such as in the case of purchases from another Subscriber in a Subscription Marketplace), any transactions for Subscriptions (as defined below) you make on Steam are being made from Valve.

    B. Subscriptions; Content and Services

    As a Subscriber you may obtain access to certain services, software and content available to Subscribers. The Steam client software and any other software, content, and updates you download or access via Steam, including but not limited to Valve or third-party video games and in-game content, and any virtual items you trade, sell or purchase in a Steam Subscription Marketplace are referred to in this Agreement as “Content and Services”; the rights to access and/or use any Contents and Services accessible through Steam are referred to in this Agreement as "Subscriptions."

    Each Subscription allows you to access particular Content and Services. Some Subscriptions may impose additional terms specific to that Subscription ("Subscription Terms") (for example, an end user license agreement specific to a particular game, or terms of use specific to a particular product or feature of Steam). Also, additional terms (for example, payment and billing procedures) may be posted on http://www.steampowered.com/ or within the Steam service ("Rules of Use"). Rules of Use include the Steam Online Conduct Rules http://steampowered.com/index.... and the Steam Refund Policy http://store.steampowered.com/.... The Subscription Terms, the Rules of Use, and the Valve Privacy Policy (which can be found at http://www.valvesoftware.com/p...) are binding on you once you indicate your acceptance of them or of this Agreement, or otherwise become bound by them as described in Section

  17. Re:I have reasonable confidence when I buy on Stea by mentil · · Score: 2

    Indeed, Steam has been running 14 years now; the Discord app is less than 4 years old. Discord Inc. claims they've raised over $30M in investments... which is a drop in the bucket compared to what Valve and Epic are making from Steam and Fortnite respectively. Ten years from now, will anyone still use/remember Discord? They could crash and burn like MySpace or countless other social networks. Far more likely, they'll get bought out by, say, Microsoft, and get rolled in to Skype or something.

    I'd only buy something on the Discord store if it were DRM-free and I could back it up.

    --
    Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.
  18. Fragmentation :/ by Anonymous Coward · · Score: 0

    Honestly, I won't even buy a game if it's not on Steam.

    1. Re:Fragmentation :/ by tepples · · Score: 1

      What makes Steam digital restrictions management superior to the lack of any DRM that's more common on Itch.io and GOG?

  19. New Stores... by Anonymous Coward · · Score: 0

    A lot of these new stores don't have what Steam has in terms of platform support. So far the Discord and Epic Mega Games stores do not appear to have a Linux option. No tux, no bucks from me.

  20. Re:I have reasonable confidence when I buy on Stea by thegarbz · · Score: 2

    ..that I will continue owning that game, at least to the extent you can own a digital object.

    Do you have the game Satisfactory by any chance? This is a game that was recently pulled from Steam and is now an Epic store exclusive. Now I haven't heard much about it yet but I wonder, in 5 years when you want to go back and play this again will you still be able to download and run it having purchased it in the "wrong" store?

    Apple's recent experience, and their terms of service saying that a customer may not be able to download the thing they bought if its not available on their store would suggest that this is actually a bad trend rather than a good one for consumers.

  21. I have full confidence in GoG by Anonymous Coward · · Score: 0

    Since, unlike Steam, I can download the games, put them on my NAS, and burn them to disc. Play anytime, anywhere, no connection needed.

    Fuck Steam. Cunts made DRM and accounts for single player games palpable for the masses. And fuck Paradox for bringing the same bullshit to GoG.

  22. Re: I have reasonable confidence when I buy on Ste by Anonymous Coward · · Score: 0

    SPLC was taken over by special interests and subverted. They literally run defense for terrorists now. Whatever impression you have of them is wrong. They no longer do the same work, and their only concern is pushing a religious and political ideology whose name translates to, "Submit."

  23. "After research" by Anonymous Coward · · Score: 0

    "After doing some research, we discovered that we can build amazing developer tools, run them, and give developers the majority of the revenue share."

    You mean after a whole slew of developers called you out for your basic greed, right?

  24. Race to the bottom by Anonymous Coward · · Score: 0

    This race to the bottom will end up with every publisher just launching their own store and paying 0% This is already happening with the major publishers. When there is one main store it makes sense for me to buy all my games from it, but when I already have to have Steam, Origin, Battle.net, and Microsoft Store to get all the AAA titles, downloading one more client, or just the damn game directly isn't anymore of a hassle.

    Steam and Discord or Epic will just be a mashup of side scrollers and indie games.