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Randy Pitchford: “Steam Isn’t The Answer”

Alex Wiltshire's picture

By Alex Wiltshire

October 8, 2009

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Gearbox head questions Valve’s conflict of interest with Steam and suggests the industry does not trust the digital distribution platform.

In an interview with Maximum PC, Pitchford said that Steam would work better if it was an independent business from Valve itself. “There’s so much conflict of interest there that it’s horrid. It’s actually really, really dangerous for the rest of the industry to allow Valve to win.”

He said that he trusts Valve on a personal level because he’s worked with Valve extensively in the past, having established Gearbox with Half-Life's PS2 port and expansions including Opposing Force. But he feels that the rest of the industry does not.

“I love Valve games, and I do business with the company," he told Maximum PC. "But, I’m just saying, Steam isn’t the answer. Steam helps us as customers, but it’s also a money grab, and Valve is exploiting a lot of people in a way that’s not totally fair. Valve is taking a larger share than it should for the service it’s providing. It’s exploiting a lot of small guys. For us big guys, we’re going to sell the units and it will be fine.”

Pitchford, who’s been on tour to promote forthcoming Gearbox title Borderlands, has also been vocal recently in explaining how easy Achievements can spur greater game sales.

OmegaVader's picture

Tripwire Interactive recently came out and argued against Pitchford. They're the makers of Red Orchestra, and claim that without Valve's Steam, they wouldn't even exist today. It's worth a read:

http://www.gamasutra.com/php-bin/news_index.php?story=25595

OmegaVader's picture

I like Steam. And I respect Pitchford. But I'd like to see details before taking his word for it.

deadkat's picture



I love quizzes!

Is it "there's no smoke without fire?"

Peter_Pesic's picture

I think there's validity in bringing up that Steam is a conflict of interest, but the way I perceive Steam is more like its own platform. Technically it might not be accurate (obviously PC/Windows is the underlying platform), but if you think of it as a platform, you'd have to criticize MS/Nintendo/Sony in the same vein, as those companies dictate the terms (technical and financial) of game released on their consoles.

In the end it is ultimately the developer/publisher's choice whether they want to pursue having their game available on Steam, taking into account the benefits and perceived negatives.

My computer is old (definitely needs to be replaced), so I don't buy many PC games right now, but my preferred method of purchase, hands down, is getting it through Steam. Valve built and keeps improving a service that customers find immensely valuable, so they deserve to set what the terms of use are.

michael_sylvain's picture

I don't think it particularly matters whether you're a fan of Gearbox or not; this relates to something that has such a huge impact on the future of the whole industry that it can't be ignored. This kind of issue is possibly the one that will most shape gaming's future - not through Tomorrow's World style claims for early cloud gaming, but in terms of defining industry practice, platforms, and its economy for years to come.

Gaming wants to go digital (financially it must be desperate to), yet can't afford to alienate its traditional retailers while it's still (largely) dependant on them. Steam's managed to establish itself while a lot of the industry is still far too torn between the two conflicting desires above to do justice to consumers. Consumers aren't yet able to make too many meaningful choices between either, partly because they're sold short on overpriced digital distribution (that keeps high streets sweet at the cost of hamstringing widespread change).

And Steam's not only got a massive part to play in how this turns out, but also has already massively influenced how the digital distribution model has evolved.

What are the problems? What are the alternative models? Not just with Steam or with customer reluctance to ditch physical media - and how will it shape the industry?

Bleemo's picture

Et tu Brute! Personally I've never especially liked Gearbox games so I find it hard to care.

hahnchen's picture

There is a potential conflict of interest here. They should consider spinning Steam out.

Tom Ohle's picture

It works well enough for the "small guys" -- I know we've been pretty happy with Witcher's performance on Steam. I do agree that there's a conflict of interest there, but that's the case with almost every digital distribution outlet around.

As for the rates, I think Randy's also overstating things. Steam probably has fairly high overhead -- I can only imagine their bandwidth bills -- and while I'm sure they're making a lot of money, you can't really expect them to run their business at a totally minimal return.

Alex Wiltshire's picture

Small guys? You do yourselves a disservice, Tom!

Raul23's picture

Not to mention other studios. I really find it hard to believe that such a prominent developer would speak out against Steam unless there was a very, very good reason to do so.

rahvii's picture

Maybe he is right or not. He should elaborate with figures how is it bad for small devs.

Alex Walker's picture

Perhaps he's signed an NDA which prevents him from doing so.

DubsTF's picture

Or perhaps he's just a mouthy douchebag who'd rather take jealous potshots at what Valve has built instead of building something better himself.