No harm meant. I do think Steam is the golden example of a big business done right. All I’m saying is that there’s room for improvement.
However do we know their full PNL/balance sheet?
We can make an educated guess. Amazon’s S3 charges roughly $0.025 per GB, so an 100GB game would cost $2.50 for Steam to upload to a user. For a $30 game, that’s around ~8.5% or just over 3 downloads before it’s unprofitable.
Obviously Valve isn’t paying consumer level S3 prices, and obviously users can download multiple times. But I would be extremely surprised if they didn’t make a rather large margin on each sale
No harm meant. I do think Steam is the golden example of a big business done right. All I’m saying is that there’s room for improvement.
We can make an educated guess. Amazon’s S3 charges roughly $0.025 per GB, so an 100GB game would cost $2.50 for Steam to upload to a user. For a $30 game, that’s around ~8.5% or just over 3 downloads before it’s unprofitable.
Obviously Valve isn’t paying consumer level S3 prices, and obviously users can download multiple times. But I would be extremely surprised if they didn’t make a rather large margin on each sale
Total fair always room for improvement, no ones perfect.
Appreciate the good discussion!
For storage or for download?
Download. It’s also rounded up. Storage is negligible compared to bandwidth, especially considering Steam’s business model