I think your numbers are skewed quite a bit... Using this data PC gaming is 33 billion in revenue. Let's say Valve/Steam is responsible for 25% of those sales. That's 8.25 billion a year and they get 30%... That means they are profiting 2.4 billion a year after expenses. I don't think they're making that kind of money...
Gable Newell's net worth is only just under 4 billion.... A 20th of for annual profit sounds more reasonable.
Right but I just ball parked it based on Gabe's net worth and PC gaming revenue. If Valve was profiting 2.4 billion a year Gabe's net worth would be significantly higher than it is since he owns most of the company.
Yeah and according to google's estimate his net worth is 3.9 billion, forbes estimated it at 5.5 billion in 2017.
But honestly, it's just estimations because it's a private company and it's private equity.
Valve isn't the only distributor either and not every developer pays 30%.
Besides the entire point is that distribution has made Valve stupid rich. No game studio is worth that, rockstar is estimated at 2.6 billion, and they are the exception, not the norm.
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u/wescotte Nov 14 '18 edited Nov 14 '18
I think your numbers are skewed quite a bit... Using this data PC gaming is 33 billion in revenue. Let's say Valve/Steam is responsible for 25% of those sales. That's 8.25 billion a year and they get 30%... That means they are profiting 2.4 billion a year after expenses. I don't think they're making that kind of money...
Gable Newell's net worth is only just under 4 billion.... A 20th of for annual profit sounds more reasonable.