Understanding Steam Commission for Major Game Publishers

The commission that Steam takes from the retail sales of major game publishers is a common topic of discussion in the gaming industry. While specific figures or details about Steam's exact commission rate may not be publicly disclosed, we can delve into the broader context of the digital storefront landscape and provide insights based on known industry standards.

Digital Storefront Commission Rates

When it comes to digital storefronts, the standard commission rate is often around 30% of the retail sales price. This is a figure that most major digital platforms adhere to. For example, the Apple App Store maintains a 30% commission rate for apps. Other platforms like Google Play and Epic Games Store also adhere to similar structures. Major digital distributors and streaming platforms like Amazon, Spotify, and others typically keep this as their standard commission rate as well.

Impact on Publishers' Net Revenue

While the commission rate might be around 30%, the net revenue for publishers can be significantly higher. This is due to a number of factors, including the treatment of taxes, VAT, and the impact of refunds and chargebacks. As a result, net revenue for publishers can often be around 62-66% of the retail price, net of commission and additional costs.

The Role of Vat and Taxes

One important factor that affects publishers' net revenues is the inclusion of taxes such as VAT (Value Added Tax) in the retail sales price. This means that while the commission is taken from the gross sales amount, the tax is deducted before calculating the net amount to be paid to the publisher. This can slightly decrease the net revenue for publishers, depending on the tax rates and the jurisdiction in which the sales are made.

Refunds and Chargebacks

Another factor that can impact the net revenue for publishers is the occurrence of refunds and chargebacks. Digital storefronts typically process these requests with a certain fee, which can reduce the net revenue flowing to publishers. Additionally, fraud detection can result in chargebacks that further reduce the net revenue, as the full cost of the transaction is almost always taken back from the publisher.

Adjusting for Industry Standards

In the highly competitive gaming industry, publishers need to adjust their revenue models and understand the realities of dealing with commission rates and overheads. By factoring in the 30% commission rate, including taxes, and accounting for the potential impact of refunds and chargebacks, publishers can better understand their net revenue and make informed business decisions.

Conclusion

While the exact commission rate for Steam may not be publicly disclosed, the industry standard for digital storefronts generally hovers around a 30% commission rate. When factoring in taxes, refunds, and chargebacks, the net revenue for major publishers can be around 62-66% of the retail price. Understanding these factors can help publishers make informed decisions and optimize their revenue models for success in the digital marketplace.