Does Steam Have a Monopoly on PC Gaming 72% of Devs Think So

jamesschierer

Are PC game developers too dependent on Steam? A new study reveals that 72% of developers believe Steam has a monopoly on PC gaming — but is that really true? In this video, we break down the data, look at competing platforms like Epic Games Store and GOG, and explore whether Steam’s dominance is fair competition or unchecked control over the PC market. Featuring gameplay from Hades.

Transcript

00:00Hey everyone, welcome back to my channel. Today I want to dig into a story that's sparking a lot

00:05of discussion in the PC gaming industry. A recent survey says that 72% of game developers

00:11believe that Steam has a monopoly on PC game distribution. So what does that really mean?

00:18Is Steam truly a monopoly or is it just very dominant? And what are the implications for

00:23developers, for gamers, and for competition? Let's dive in. The figure comes from a white

00:31paper titled The State of PC Game Distribution, published by the digital distribution platform

00:37Roki, based on independent research by Atomic Research. The survey acts 306 executives in

00:45game studios across the US and the UK between May 18 and May 22, 2025. Of those, about 72%

00:53said they believe that Steam holds a monopoly in the PC games market. The survey also surfaced

01:01that a large proportion of those same developers say that Steam accounts for more than 75% of

01:07their PC game revenue. In terms of alternate platforms, about 48% of respondents say they

01:14had distributed games on the Epic Game Store or the Xbox PC Game Store, whereas 10% said they'd

01:20used GOG, Galaxy, and around 8% had used itch.io. Importantly, 80% of respondents said they expect to

01:30use multiple distribution channels and not just rely solely on Steam within the next five years.

01:37So what the data suggests is many developers feel reliant on Steam, many are getting the bulk of their PC

01:44revenue from Steam, and many feel that Steam's dominance is so great as to amount to a monopoly

01:50in their view. Let's look at the reasons why this claim seems plausible. First, market share dominance

01:56and network effects. Steam has been the dominant PC distribution channel for years. Reports suggest

02:03that Steam handles a very large proportion of PC game sales globally. That kind of dominance gives Steam

02:10enormous bargaining power and influence. Given that many developers are dependent on Steam, it gives Steam

02:16leverage in negotiations and setting terms and being the gate to success. Second, ecosystem locks it. Once a game

02:24is on Steam, players tend to stay in the Steam ecosystem, they buy multiple games on Steam, build a library, use Steam

02:32features like achievements, cloud saves, community hubs, and workshop mods. For a player choosing another platform, the

02:39incentive to go elsewhere may be weak because the Steam library is already large, the friends list is

02:45there, and so on. That means developers feel like they must be on Steam to reach an audience, else risk being

02:52ignored. Third, barriers for meaningful competition. While other stores exist, none have yet matched Steam's

02:59combination of user-based size, discoverability tools, community features, trust, and maturity. When alternatives

03:07attempt to compete, the network effects and the incumbency advantage makes it hard. So for many developers,

03:13Steam feels like the only practical game in town for serious PC distribution. Fourth, the survey's own data

03:21underscores why developers feel this way. Large revenue share from Steam, fewer developers using lesser

03:27platforms, strong expectation of relying on multiple platforms, and future, which itself is an acknowledgement of current

03:34risk. All that backs up the idea that from a developer's lived experience, Steam acts like a monopoly.

03:41However, the claim that Steam is a monopoly needs scrutiny. The legal and economic definition of monopoly is

03:48narrower than everyday speech. Analysts like Matt Piscitella argue that Steam does not meet all the

03:54criteria of a monopoly because there are alternative PC stores, distribution channels, direct-to-consumer sales

04:01outside Steam. The PC platform is open and you are not locked into Steam in the same way you might be on consoles.

04:10For instance, one prominent critique says, in other words, 72% don't know what monopoly is.

04:15That headline reflects the idea that the respondents may be using monopoly colloquially to mean dominant

04:22platform rather than the strict economic term. Another argument, a monopoly typically involves not just

04:29dominance but abuse of that dominance, like excluding competitors, charging excessive prices, and gauging

04:36in anti-competitive behavior. The public record does not strongly show that Steam is actively using

04:42exclusionary practices, although some argue it exerts soft pressure. For example, Steam doesn't require

04:48exclusivity. Developers often release elsewhere, and the PC platform still allows entirely independent

04:55distribution outside launchers. Additionally, the presence of smaller stores, direct sales,

05:01subscription services, bundles, etc. mean that the market is not literally single-seller, so some

05:07observers prefer to describe Steam's position as near monopoly or dominant platform rather than

05:14monopolistic gatekeeper in the strictest sense. Also, one must be careful about survey bias. The respondents

05:22were mostly larger companies, 77% from studios with more than 50 employees, and mostly C-suite level

05:29managers, as well as US and UK based. So the sample might skew towards firms who are highly dependent on

05:36Steam and less diversified, which could color the perception of how monopolistic Steam is in the broader

05:42global media ecosystem. Let's talk about some additional context that affects how we interpret this study

05:49and the monopoly question. First, discoverability and saturation. Even if Steam is dominant, one of the

05:56big problems developers face is not just distribution, but being seen. Thousands of games launch every year.

06:03The value of being on Steam isn't just you reach the entire audience, but also you have a chance to be

06:09visible within that audience. That alone drives a lot of concentration around Steam. The study notes the

06:15challenge of discoverability on PC and how many devs fear being lost in the noise. Second, economic dependence and

06:24risk. The more revenue a studio gets from Steam, the more vulnerable it is to change in Steam's terms, algorithms,

06:31store features, revenue shares, or policy. The survey suggests many devs recognize the risk and thus intend to

06:38diversify. That is a key part of the story. Steam's dominance isn't just about market share. It's about the risk of

06:45putting all your eggs in one basket. Third, global and regional markets. The PC gaming distribution

06:52landscape varies by region, platform, genre. While Steam has strong dominance in many markets,

06:59in some regions, local storefronts or non-Steam channels may matter more. The survey is US-UK skewed,

07:06so global nuance is missing. Fourth, business model dynamics. Competing stores such as Epic Game Store

07:14have attempted to carve market share via exclusive deals, lower revenue share, free games, etc.

07:21But despite those efforts, Steam continues to win in terms of user trust, library size, platform features,

07:28and ecosystem. That matters for developers making strategic distribution decisions.

07:34Fifth, technical ecosystem and platform features. Steam offers cloud saves, automatic patching,

07:40workshop mod support, community features, integrated achievements, friendless, Steam Deck compatibility,

07:47etc. For many developers and players, these features create significant value and make Steam the

07:54preferred platform. That preference translates into leverage for Steam. So, what are the practical

08:00takeaways for developers and for gamers? For developers, if you're launching a PC game, you need to

08:07seriously consider the role of Steam in your strategy. Because if the majority of players are on Steam,

08:12and many developers see 75% or more of their revenue coming there, ignoring Steam could mean severely

08:19limiting your reach. At the same time, being heavily dependent on Steam is a risk. Changes to Steam's

08:25algorithms, store placement, fee structure, or discoverability could impact your business. The study

08:31shows that 80% of developers plan to diversify, which signals the industry recognizes this risk.

08:38So, building a multi-channel distribution strategy, meaning Steam and at least one other alternate

08:43platform, plus direct sales, seems prudent. For gamers, the fact that Steam is so dominant means you get

08:51plenty of benefits. Huge catalogs, frequent sales, familiar UI, integrated community feature. But a dominant

08:58platform also means the risk of less competition, fewer incentives for radical innovation, fewer

09:05alternatives for consumers, less pressure on the platform to reduce fees or improve terms. If Steam

09:12truly has market power, there is a chance that developers may face higher costs or be locked into

09:18terms which could eventually affect game pricing or availability. So, diversification and distribution

09:24could benefit gamers too. For the industry at large, competition matters. A dynamic ecosystem with a few

09:32strong players but not one unassailable gatekeeper is healthier in the long term. The survey serves as

09:38a reminder that while Steam dominance is clear, many developers feel constrained by it. That signal could

09:44influence future regulation, partnership, store design, and developer behavior. Bringing everything

09:51together, the survey shows a strong sentiment among developers. The majority believe Steam operates

09:57like a monopoly. The data backs up that perception. Large revenue shares, high dependency, fewer

10:03meaningful alternatives. On the flip side, when you examine legal and economic definitions of monopoly,

10:10Steam doesn't check every box. There are competitors, the PC platform is open, and the market isn't

10:16strictly single seller. Therefore, my conclusion is that Steam could be described as a near monopoly or

10:23de facto dominant platform in PC game distribution rather than a textbook monopoly. It has enormous market

10:30power, developers feel constrained, and its dominance drives much of the industry's distribution behavior.

10:36But calling it a full monopoly suggests a level of lock-in, exclusion, or abuse that we don't fully have

10:42proof of, at least publicly. For developers, the takeaway is clear. Don't assume you can ignore the

10:49alternatives. Start building a diversified strategy. For gamers, while Steam is convenient and strong,

10:56keeping an eye on alternative platforms is healthy for long-term ecosystem health. For industry watchers,

11:02this survey is a warning that dominant platforms, even in open markets like PC games, can create dependency,

11:09risk, risk, and potential for imbalance.

11:12Thanks for watching. What do you think? Does Steam have monopoly power or is it just the best,

11:18most trusted platform? Are you a developer veteran or indie dev? How do you feel about your

11:23distribution options? Drop your thoughts in the comments below. If you enjoyed this video, hit like,

11:29subscribe, and ring that bell so you don't miss our next deep dive into PC gaming industry trends. Until next time, game on!

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