Table of Contents

Understanding Steam’s Fee Structure: A Comprehensive Guide for Gamers and Developers

Steam, the ubiquitous digital distribution platform developed by Valve, is a cornerstone of the PC gaming world. Whether you’re a gamer buying your favorite titles or a developer looking to launch your next indie hit, understanding Steam’s fee structure is crucial. So, what fee does Steam take? The answer, while seemingly simple, involves several layers depending on the context. Here’s a breakdown:

For Game Sales: Steam operates on a revenue-sharing model with game developers. The standard cut is 30% of all sales up to the first $10 million. Once a game surpasses that threshold, the revenue share shifts to 25% for sales between $10 million and $50 million. Beyond $50 million, Steam takes only 20%.
For Items on the Community Market: If you’re selling in-game items on the Steam Community Market, Valve charges a “Steam Fee” of 5% of the selling price. There may also be a game-specific fee on top of that, which is determined by the individual game developer.
For Publishing Games on Steam Direct: To publish a game on Steam, there’s a $100 fee per game submitted through Steam Direct. This fee is intended to filter out low-quality submissions and encourage developers to take their projects seriously. However, this fee is refundable if your game generates at least $1,000 in adjusted gross revenue from the Steam Store and in-app purchases.
For Subscriptions: Steam itself doesn’t have any recurring fees unless the user subscribes to a particular game. The subscription cost of those fees vary.

Diving Deeper into Steam’s Fee Policies

The variations in Steam’s fees reflect Valve’s approach to supporting both its platform and the game development community. The tiered revenue split for game sales, for instance, recognizes the efforts of both indie developers and AAA studios, offering better terms to those who achieve significant success. The Community Market fees help maintain the marketplace and prevent abuse. Let’s explore these different aspects in more detail.

Revenue Sharing with Game Developers

The revenue share model is the core of Steam’s financial relationship with game developers. The widely cited 30% cut represents the initial baseline. This cut covers the costs of hosting game data, providing Steam cloud services, community features, achievement tracking, and the Steamworks API. This ensures that developers can focus on creating their games, while Valve handles the distribution and infrastructure. The tiered system, introduced in recent years, is designed to incentivize developers to continue selling their games on Steam even after achieving major sales milestones.

Community Market Fees

The Steam Community Market allows users to buy and sell in-game items. When a user lists an item for sale, Steam charges two types of fees:

Steam Fee: This is a standard 5% fee applied to all transactions.
Game-Specific Fee: This fee is determined by the game developer and can vary. It is intended to support the game’s economy and development. The combined fees are deducted from the seller’s earnings.

Steam Direct Fee

To publish a game on Steam, developers must pay a $100 fee through Steam Direct. This fee is a one-time payment per game. While some developers initially criticized the fee, it serves as a filter against low-quality submissions and helps maintain the overall quality of the Steam library. The fact that it’s refundable upon reaching $1,000 in revenue further mitigates the financial burden on developers with promising games.

Other Potential Costs

While Steam doesn’t charge a monthly fee, it’s important to note that users may incur costs associated with:

Game Purchases: The most obvious cost is the price of the games themselves.
In-App Purchases: Many games offer in-app purchases, such as cosmetic items, currency, or expansions.
Online Game Subscriptions: Some multiplayer games require a subscription fee to access online services.

FAQs: Demystifying Steam’s Fee Structure

Here are some frequently asked questions about Steam’s fees to provide more clarity:

1. Why does Steam take 30%?

The 30% cut from game sales is a revenue share between Valve and the game developer or publisher. It covers the cost of providing the Steam platform, hosting game data, providing cloud services, community features, and other infrastructure, known as Steamworks.

2. How much does it cost to put something on Steam?

It costs $100 per game submitted through Steam Direct. This fee is refundable if the game generates at least $1,000 in adjusted gross revenue. Also, the seller will need to pay a Steam Fee and Game-Specific Fee when selling on the Community Market.

3. What happens to the $100 Steam Direct fee if my game doesn’t sell?

If your game doesn’t generate $1,000 in revenue, the $100 fee is not refunded.

4. Is it worth it to publish a game on Steam?

Steam is the leading PC game distribution platform, with access to millions of potential customers. It supports numerous languages. You can always check out great games made with GDevelop! Given that 50% to 70% of the world’s PC game downloads take place on Steam, it can be a very strong place to consider publishing a game.

5. How does Steam pay developers?

Steam pays developers monthly via wire transfer or PayPal. Payments are typically sent within 30 days of the end of the month in which the revenue was generated.

6. Does Steam take a cut of in-app purchases?

Yes, Steam takes the same 30% cut from in-app purchases as it does from game sales, subject to the same tiered revenue share percentages as revenue increases.

7. Can I publish a game on Steam for free?

No, there is a $100 fee for publishing a game on Steam. This fee can be recouped if the game generates $1,000 in revenue. Newgrounds is a free-to-use service, however.

8. What is the Steam Community Market Selling Fee?

The Steam Community Market selling fee consists of a 5% Steam Fee and a game-specific fee determined by the game developer.

9. Does Steam pay your taxes?

Steam pricing includes Value Added Tax (VAT) in countries where it’s collected. Valve remits the collected tax to the appropriate tax authorities.

10. Why do I have to spend $5 on Steam to access community features?

This is a security measure to prevent malicious users from creating fake accounts for spamming and phishing. Requiring a $5 minimum spend helps deter such activities.

11. Why does Steam charge me monthly?

Valve doesn’t have recurring monthly fees unless you subscribe to an online game. Monthly charges are for video games and/or in-game content, like weapons and armor, that you directly download to your computer.

12. Does Steam charge for gift cards?

There are no extra or hidden fees associated with redeeming Steam gift cards.

13. Is Steam losing popularity?

Steam’s growth rate slowed down after the COVID-19 pandemic boom, but it’s currently experiencing steady growth. It remains the dominant PC gaming platform.

14. Do you legally own the games on Steam?

When you “buy” a game on Steam, you are actually purchasing a license to play it under Steam’s rules and conditions. You don’t own the game in the same way you would own a physical copy.

15. How does Steam make money?

Steam makes money primarily through the commissions it charges on all game sales and in-app purchases. The revenue share depends on total net sales volume.

The world of gaming is also heavily based on learning, and games are even used as tools in education. To discover more about the intersection of games and education, visit the Games Learning Society at https://www.gameslearningsociety.org/ or explore the latest at GamesLearningSociety.org.

Understanding Steam’s fee structure is essential for both gamers and developers. Whether you’re buying, selling, or publishing games, knowing the fees involved helps you make informed decisions and navigate the Steam ecosystem effectively.

Steam’s complex system helps support gamers, developers and Valve. Knowing the ins and outs helps everyone.

What fee does Steam take?