>Steam controls up to 70% of the downloadable PC market


Steam is “tremendously profitable” 
According to an article by PC Gamer
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Steam is said to be more profitable [per employee] than both Google and Apple. Estimating that Steam controls 50-70% of the PC download market. 

Newell was recently profiled by Forbes, who estimate that Valve’s profits for 2010 were in the “high hundreds of millions of dollars”. With the company valued between $2-$4 billion. This is an astonishing figure, give the fact that Valve only employs 250 people. 

Frobes attributes the success of Steam to its simplified take on the download and installation of games; Steam also offers publishers “a gross margin of around 70% on Steam, compared with 30% via retail stores.”

Newell also speculated Steam could easily be used to sell films and music, but insisted that Valve was focused on delivering a better experience for gamers. 

Steam’s outlook continues to be extremely positive, with the service gaining a 200% increase in it’s user base. The service logs 6 million unique users everyday, and shows no sign of slowing down. 
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About Zahk

I love video games :)
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37 Responses to >Steam controls up to 70% of the downloadable PC market

  1. >Had never heard of them before today, that's some value, is that down to online subscriptions mostly?

  2. Bassislv says:

    >awesome, I wish I could work there

  3. wutssz says:

    >Steam is awesome. Simple to use, I never had any problem, good servers. Good price to buy games .

  4. The Game says:

    >That's because games are largest things available out there, and they need to be downloaded often to reinstall when something goes wrong and such…

  5. PvtCarlin says:

    >Oh wow, I did not realize this. Good post!

  6. Banacek says:

    >I hate dealing with Steam. I hope they don't start selling music and movies.

  7. >That's impressive. Steam is a very well implemented system, and I probably buy more games than I otherwise would because they make it so simple.

  8. >Steam is the best for downloading games! They always have sales. I got counter strike source for 5$!!! Also Day of Defeat for 4$!!!

  9. Linksss says:

    >is this company gonna go public? what a sleeper pick right here

  10. HiFi says:

    >Wow, that's incredible. But then again, Steam does have a LOT of games!

  11. yermolay says:

    >yeah, that's easy to seethey make it so easy with all of their great salestheir profit margin must be crazy

  12. Lendo Khar says:

    >Oh, that's why they can me make those crazy offers, best deals I had were thanks to steam.

  13. Rondariel says:

    >Hm. I don't like binding my games to steam if it can be avoided. That is all I don't like about Steam.

  14. gcphillips1 says:

    >To be honest they deserve it, they have made gaming that little easier. Offline mode needs to be sorted though!

  15. AssortedNews says:

    >With their great prices and ease of use, almost all PC games I buy anymore are through Steam.

  16. >No doubt about it that Steam is going to be the new rulers of the world.

  17. G says:

    >wow that's one hell of a market share – bet itunes and google are looking at that with interest

  18. Rob says:

    >Steam is pretty cool.

  19. 1904 Blogger says:

    >wow congrats steam!i remember when i had to switch to steamshit when i was heavy into 1.6 and it was sooooo laggy and buggy, they have come a long way since then

  20. >sounds about right lol. i love steam and im a die hard live gamer.

  21. shishimaru says:

    >Steam is a beast but its to be expected.. its been around for a while now, no? >:3

  22. Sam Hampitts says:

    >Steam is pretty damn awesome I must admit, great deals on games alot of the time.

  23. Ion762 says:

    >good for steam they are by far my favorite DD service out right now!

  24. Wobbles says:

    >70%? That's crazy. They're probably going to have a monopoly on it soon!

  25. Decadent says:

    >I wonder if there will be antimonopoly acts for internet space. o_O

  26. Matthew says:

    >I buy all my games on steam for pc as I tend to buy my games while browsing the internet, read a few reviews & download games I like off steam. I'm not very keen on shoping so its the easyist way for me.

  27. Niko says:

    >I think Steam is the only thing keeping the PC Market going. That and MMO's.

  28. Ramsay says:

    >Wow, I knew steam was big but not 70% big, but with games like counter strike and portal you can't afford not to have steam!

  29. Sidewayz says:

    >use steam only for the occasionaly free game have never bought anything through them

  30. Tasty says:

    >WOW I mean I knew they were popular, but that is just ridiculous. Very smart business plan there.. To have that kind of profit with such a small workforce? Bravo.

  31. Brut says:

    >Steam is awesome!

  32. Bobby says:

    >I kind of figured it would be that high

  33. >Steam is fantastic. Moreso with their deals that happen very so often, like the 5 indie games for 5 dollars. I think I spent more through steam in the month of December than I had spent on games in the 6mos before it.

  34. Alan says:

    >Steam FTW. unless you live in Australia…. dam you caps!

  35. Con Queso says:

    >A bit scary, I actually hope another service can come up to compete with Steam. Monopolies can be scary. For now it's pretty sweet for us.

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