GMG

[zespri]

Can some one explain me what the deal with GMG? Are they legal? If so how do they manage to sell steam keys cheaper than on steam?

[x4000]

They are indeed legal, and are great folks.  Steam keys can be sold by third parties at any price that the developer wishes to agree to, when it's a developer's game.  In other words, it's not like you getting a bunch of free keys and then selling them for some low cost. 

GMG works just like any other distributor, and in fact Arcen is partnered with them.  We give them steam keys and tell them the price we want to sell at, and periodically we agree to do promotional sales, just like we do with Steam.  The steam platform is the delivery vector, but otherwise Steam is not really involved in the transaction between the developer, the customer, and GMG.

It's the same principle as HIB.  The developer gives Humble the steam keys, and then there is a PWYW for customers, etc.  But aside from providing the steam keys, Steam is not involved there.

[Cyborg]

Does steam charge some flat price for the keys?

[x4000]

I don't think I can really comment on that, although I will say that I like Steam very much for how they handle this.

[keith.lamothe]

Yea, their approach is remarkably reasonable.

[zespri]

Thank you for explaining this to me. Incidentally, I find the follow up replies even more informative than the original =))) That's what you get when you ask the right questions =)

[Cyborg]

Well, not being part of the secret club... There's always Google:

http://steamreview.org/posts/finances/

[keith.lamothe]

Well, not being part of the secret club... There's always Google:

http://steamreview.org/posts/finances/

There is google   Though I'm not sure that article addresses that specific question?

Anyway, it's not that I mind answering (ooh secrets!), but there is an NDA in there somewhere and I don't want to run afoul of it.

[x4000]

Right.  It's our single most important business relationship, and we take great pains not to sabotage it.  As you know, I'm not exactly a secret hoarder.

[Cyborg]

I get it. I didn't think you were being petty. I understand your most rational decision would be to protect that relationship. Respectively, mine would be to figure out the answers to my questions anyway. Eventually, some disgruntled group will spill the beans.

[x4000]

Oh you bet, and more the power to you.  I'm certainly not opposed to you having the info, either.

[zespri]

What is the point for a game developer, however, to sell a title for 15$ on steam and then for 10$ on gmg?

[keith.lamothe]

What is the point for a game developer, however, to sell a title for 15$ on steam and then for 10$ on gmg?

I'm not certain.  But then again, what is the point for a game developer to list a title for $15 and then periodically put it on sale for $3.75?

Not exactly equivalent, but in general there's a ton of price fiddling all over the place.  The elasticity is so high it almost seems to not matter what you do as long as you go through a range of promotional sales.  Though to do that it seems to help to start at no lower than, say, $10.

[x4000]

In terms of doing temporary sales, the reason that is of benefit is that total revenues tend to go up something like 2000% to 4000% for the life of the discount promotion (no, not kidding).  Sometimes more or less, depending on the promotion.

In terms of permanently having a lower price at one vendor versus another... well, that is pretty odd.  Generally frowned upon.