Steam and the FPB

TheCorinthian

Hey guys.

Has anyone given this a read?

Steam to pay FPB for distributing games

The fees seem pretty steep, and I wonder whether Steam will just take the hit, or spike game prices here...
@LexAquillia, I'm particularly curious to hear what your take is on this.
Thanks!

LexAquillia

My thoughts here: http://www.nickhallsa.co.za/2017/10/17/lets-talk-fpb-steam-online-distribution-and-ratings/http://nickhallsa.co.za/2017/10/17/lets-talk-fpb-steam-online-distribution-and-ratings/

TheCorinthian

Thank you much!

EvanGreenwood

Just one point about @LexAquillia's notes. Valve takes 30% of revenue from Steam, and that is R37.2 Million of R124 Million.

But not all of that goes to Valve, let alone is profit. Some of that is taxes and credit card fees. Based on Humbles breakdown of sales (which they are more open about) I'd guestimate only 10% goes to Steam from each sale to pay for hosting/staff etc. So that's more like R12.4 Million that Valve actually gets, and the FPB wants Valve to pay R3 Million.

Unless I'm misunderstanding how VAT and credit card fees work? (which are costs that Valve eats on every sale as I understand it).