How should Steam be defined? Different perspectives yield vastly different answers. According to Erik Peterson, Valve's business development head, at this year's August Gamescom event, Steam's concurrent online users have doubled from 20 million in 2020 to over 40 million today, with in-game peak concurrent users surpassing 12 million.

Additionally, Steam's game distribution revenue in 2024 hit a record high, with 224 games generating over $1 million in sales. It's no exaggeration to say that the platform's influence, penetration, and commercial appeal continue to soar, even as it remains the largest distribution hub in the global PC gaming market.

Yet, to some, this very "dominance" harbors concerns.

Recently, ROKKY, a PC game distribution platform, released a whitepaper titled *The State of PC Game Distribution*, which highlighted industry-wide anxieties through independent survey data. In May, Atomik Research interviewed 306 game industry professionals from the U.S. and U.K., most from studios with 50+ employees, with three-quarters in managerial roles.

The report revealed that Steam accounts for over 75% of revenue for most game studios, with more than half of developers admitting their teams are "overly reliant" on the platform. These findings culminated in a striking conclusion: 72% of developers believe Steam holds a monopoly in the PC gaming market.

**Image source: ROKKY's official website**

After more than two decades, has this revolutionary platform—once the disruptor of traditional distribution—become the final boss of the new era?

### The Shadow of Monopoly Criticism of Steam's alleged monopoly has long simmered in the industry.

In recent years, what was once a private consensus among developers has escalated into public legal battles. Since 2021, Steam has been intermittently embroiled in antitrust lawsuits.

In April 2021, Wolfire Studios sued Valve, arguing that its 30% commission policy and related terms constituted anti-competitive practices. Wolfire claimed Valve leveraged Steam's dominance to artificially inflate game prices while exploiting multiple stakeholders in the ecosystem.

Wolfire pointed to restrictive clauses like the "price parity" rule, which prevents developers from offering lower prices on other platforms, ensuring no digital store can undercut Steam.

Valve sought dismissal months later, arguing it faces fierce competition from industry leaders like Microsoft, Amazon, and Epic. As for the 30% cut, Valve maintained it was a long-standing "industry standard."

**Image source: Steam**

By late 2021, a U.S. court dismissed the case, but Wolfire refiled with revised arguments. In mid-2022, the court allowed the lawsuit to proceed.

Similarly, Dark Catt Studios sued Valve for monopoly practices, only to have its case partially dismissed before refiling. By late 2024, U.S. courts consolidated both cases, authorizing a class-action lawsuit against Valve.

This legal battle now extends beyond two studios, potentially encompassing countless developers dissatisfied with Steam's policies.

At the heart of these antitrust disputes are two issues: restrictive terms and high commissions. The former sustains Steam's dominance, while the latter translates it into sustained profits.

Reports reveal Steam mandates uniform pricing across stores, with internal emails showing Valve actively enforces this policy. Developers risk losing promotions if they offer discounts elsewhere.

**Image source: Steam's deals section**

With limited avenues for differentiation, emerging platforms struggle to compete. In this context, the 30% cut fuels resentment.

Though Steam adjusted its revenue split in 2018—30% for earnings under $10M, 25% for $10M–$50M, and 20% beyond—the changes favored top-tier titles, leaving smaller developers dissatisfied.

### Failed Challenges Valve defends its 30% cut as an industry norm, but critics see it as rigidity.

While indie developers grapple with profitability, Valve reaps high-margin profits. Legal filings revealed that in 2021, Steam's operations were managed by just 79 of Valve's 336 employees, generating billions annually—an enviable return rate.

This efficiency contrasts sharply with Valve's claims of facing "intense competition" from consoles, mobile stores, and first-party launchers, lending credence to monopoly allegations.

Yet challengers abound.

Epic Games Store slashed its cut to 12% in 2018, and Microsoft followed suit in 2021. A GDC survey that year found nearly half of 3,000 developers believed platform cuts should be under 10%, with only 6% accepting 30%.

**Image source: Internet**

Despite these pressures, Steam's dominance remains unshaken. Its concurrent users doubled post-Epic's entry, and markets like China—where Simplified Chinese users now outnumber English players—fuel growth.

Major Chinese titles, from NetEase's *Marvel Rivals* to *Black Myth: Wukong*, rely heavily on Steam. When *Wukong* surpassed 28 million sales, Steam accounted for over 23 million.

Ethan Evans, former VP of Amazon's Prime Gaming, reflected on failed attempts to rival Steam. Amazon misjudged Steam as a mere storefront, underestimating its ecosystem's stickiness.

Efforts like acquiring Twitch failed to convert viewers into platform users, proving PC gaming resists the cash-burning tactics of ride-hailing or food delivery wars.

**Image source: Internet**

### The Nature of Competition Is Steam's resilience due to monopoly?

Since 2003, Valve has redefined gaming: discovering titles digitally, paying online, downloading legally, and receiving updates seamlessly.

Yet "game store" undersells Steam's complexity. Competitors face not just a marketplace but a multilingual social network, a vast review system, achievement showcases, and libraries of unplayed games.

**Image source: Internet**

Steam's ecosystem transcends gameplay, encompassing collecting, reviewing, and identity-building. Its "Library" concept taps into hoarding instincts, while playtime metrics empower players in online debates.

These elements create migration costs no rival can easily absorb. For players, switching platforms means abandoning past purchases—a dealbreaker.

Even Epic, praised for its developer-friendly 12% cut, struggles with user experience. Many players prefer buying Epic-freebies on Steam.

**Image source: Epic Games Store**

Valve continues refining Steam, with Erik Peterson recently highlighting features like weighted reviews, performance monitors, and personalized recommendations—enhancements players value.

Ultimately, while developers choose platforms, players decide. Steam's focus on the latter underpins its success.

In the monopoly debate, distinctions matter. Suspect practices like price parity warrant scrutiny, but Steam's hard-earned advantages shouldn't be conflated with anti-competitive behavior.

Amid global antitrust movements and scrutiny of "Apple taxes," no player wants a monopoly stifling innovation—but that doesn’t mean embracing unproven alternatives.