GamersGate: 'We're Not Afraid of Steam'

February 8, 2011 -

GamersGate CEO Theo Bergquist wants the world to know that his company is not afraid of digital distribution giant Steam. In an interview with Industry Gamers, Bergquist said that Steam has hit "peak numbers" and that - at this point - it can only "lose market share." The European-centric digital distribution channel saw sales rise by 72 percent during the holiday shopping season.

"To be honest, we're not afraid of Steam," said Bergquist. "We think they are peaking now while the market is still very hardcore. In fact, we know from the feedback we receive from customers, one of the reasons we have such great growth is because many gamers out there don't like Steam and see GamersGate as a better alternative."

Of course, it does not hurt that - occasionally - PC gamers can get by release date region locking by buying the European version of some games. A prime example of that was Gothic 4, which was released in Europe first, then North America.

"Once digital sales are superior to physical sales, we believe Steam will have a harder time remaining #1," Bergquist continued. "We don't have any market breakdown of the overall numbers. Some people say Steam has 50 percent of the market, some say 80 percent, but we don't know. What we do know is that Steam's marketshare will shrink in the future and that GamersGate is well positioned as one of the digital distribution platforms that has strong momentum to gain marketshare."

Of course we have no data to ascertain how other digital distribution platforms such as Direct2Drive and Impulse take away from the market share GamersGate hopes to gain.

While Bergquist cautions that "you should never underestimate" the power of traditional retail, he also believes that 2011 will be the tipping point for digital distribution to overtake retail. When you throw proprietary distribution services such as PlayStation Network, Wii Shop Channel, Apple's App Stores, Android Marketplace, and Xbox Live into the mix, that way of thinking makes sense.

"I think 2011 will be a tipping point for digital downloads in which they should really take off. Digital distribution is no longer a business development project for publishers; it's an integral part of the sales organization. They look at the greater revenue split they can get from digital as compared to physical, and it's easy math to decide that they should focus on digital."

Source: Industry Gamers


Comments

Re: GamersGate: 'We're Not Afraid of Steam'

I use Steam because they have the best deals anywhere and I really only want to run one client to install and use my digitally licensed games.  And I track deals on Steam, Direct2Drive, GamersGate, Impulse Driven, and GoG.  I don't buy games that are not on sale.  I tend to wait for the holidays to roll around and I can pick up well over a year's supply of games over the course of a couple weeks of insanity.  Plus, Steam consistently has Midweek Madness and Weekend Free Play/Deals that are typically pretty good.

Anything not on sale on Steam is always overpriced.  I just wait for it to get cheap and then hit sale prices along with everyone else and then jump on board.

What I wish for is the ability to transfer my digital licenses to whatever digital distribution platform I want to play my games through.  That way I can use my favorite client for all my digital licenses AND I'll be more encouraged to buy my games from whoever is selling them for the least amount of money.  It is in GamersGate's best interest to work out a deal with Steam to allow for digital license transfers.  Who cares where you bought the license from as long as you legitimately own it?

- Left4Dead

Why are zombies always eating brains? I want to see zombies that eat toes for a living. Undead-related pun intended.

- Left4Dead Why are zombies always eating brains? I want to see zombies that eat toes for a living. Undead-related pun intended.

Re: GamersGate: 'We're Not Afraid of Steam'

 

So... Not afraid of Steam, ey?

So, how else would one explain that prices for the digital
versions of a games on Steam are on average 40% higher
than the physical disc version found in stores?

Even with the non-existing rights of the user, Steam has
millions of users. If Steam gave any sort of rights to their
customers, and made sure that the prices were fair, they
would wipe out any competition over-night.

That's how "not afraid" the competition is of Steam...

 

Re: GamersGate: 'We're Not Afraid of Steam'

yah lets see Steam ran $5 indie games packs with 4-5 games a peice during the holidays.  I haven't seen any other game distribution system do anything close to that.   And Steam lose market share?  I doubt it.  Maybe you'll see more people expanding out, but I really think that as time goes on the number of people that realise how nice steam is will just increase. 

Re: GamersGate: 'We're Not Afraid of Steam'

I'm sorry, who/what is GamersGate, as I go and make another purchase on Steam? That's a lot of chest-thumping from Mr. Bergquist when he outright admits he can't back it up. Why, exactly, does he believe that Steam's marketshare will shrink?

The more likely scenario here is that Steam isn't afraid of GamersGate.

Re: GamersGate: 'We're Not Afraid of Steam'

Did it for the free publicity yo. 

Re: GamersGate: 'We're Not Afraid of Steam'

Yeah, it may be free, but I'm not sure it's doing anything for them. After all, I have yet to go looking at their website to see what they offer, and I've fully embraced digital downloads for my PC gaming.

Re: GamersGate: 'We're Not Afraid of Steam'

Exactly what I was thinking.  Never even heard of GamersGate, but whatever.  If they have no fear, that's good.  Because fear leads to anger, anger leads to hate, etc.

Re: GamersGate: 'We're Not Afraid of Steam'

Ditto. I think I heard the name somewhere, but I really don't know of any companies other than Valve that can have a minimum of 2 super awesome sales twice a year. During the Holidays, I was able to buy 8 games for less than 100$. I doubt anyone can beat the deals offered on Steam.

----------

Living in Canada can be a very good thing, you know. We enjoy the universal healthcare and gun-free environment of an European country while getting all of our games released at the same time as in the US.

Living in Canada is awesome. We enjoy the universal healthcare and gun-free environment of a European country while getting all of our games released at the same time as the US.

 
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MechaTama31Are... Are you guys suggesting that the content of the "Gamers are over" article is *less* inflammatory than the title?10/02/2014 - 7:58am
quiknkoldhey James, Boycotts are not Censorship. Supreme Court NAACP v. Claiborne Hardware Co. (1982)10/02/2014 - 7:37am
Michael ChandraWhat's in a name? That which we call a rose by any other name would smell as sweet. That said, the name says it all.10/02/2014 - 7:34am
E. Zachary KnightYes.10/02/2014 - 7:29am
ConsterQuestion: is Kefka on drugs, or is he secretly a conspiracy theorist character from a TV show?10/02/2014 - 7:21am
james_fudgeEnjoy my comedy stylings.10/02/2014 - 7:10am
james_fudgehttp://www.breitbart.com/Breitbart-London/2014/10/02/It-s-been-real-GameJournoPros-prepares-to-close-its-doors10/02/2014 - 7:09am
InfophileAnd the headlines-only part is particularly depressing, as in most sites, they're not even written by the author of the article. So the author has to field tons of complaints about what the editor decided to title their article.10/02/2014 - 6:25am
InfophileAE: Most people don't. This has been tested - I remember an article slipped in a request in the second-to-last paragraph to use the word "banana" in your comment if you read that. It took over 50 posts for a banana.10/02/2014 - 6:24am
james_fudgeprh99: Whether you agree with the article or not, fighting alleged censorship with censorship is hella lame10/02/2014 - 4:27am
james_fudgewhoever made that decision at Intel will regret it later on down the road. Boycotts are tricky business.10/02/2014 - 4:26am
prh99The unflattering characterization "They don’t know how to dress or behave." & "‘Games culture’ is a petri dish of people who know so little about how human social interaction..." probably didn't help.10/02/2014 - 1:52am
prh99Probably not many as it was purely a vindictive move. The headline alone was plenty of ammo, but for those that did read and complain..10/02/2014 - 1:42am
Andrew EisenI wonder how many of those who complain about that article actually read past the headline.10/02/2014 - 1:37am
prh99http://intel.ly/1tjh1AH http://bit.ly/1rGPHOY http://intel.ly/Zu6go9 it isn't surprising "Gamers are over" didn't go over very well.10/02/2014 - 1:34am
Papa MidnightCan you parlay that to #WriteAGawkerArticle? The cesspool of horrid crap over there extends far beyond Kotaku.10/02/2014 - 12:34am
Andrew EisenWow! Intel dropped Gamasutra due to GameJournoPros? Over Matt Matthews? The only Gamasutra guy in the group? Who hasn't written a single thing about #GamerGate at the site? Where did you read that?10/02/2014 - 12:32am
Neo_DrKefka#WriteAKotakuArticle "#GamerGate is responsible for breaking millions of Intel powered macbooks after angry SWJ hipsters slam them shut" or "How Toxic Processors from Intel causes sexism. "10/02/2014 - 12:15am
Neo_DrKefkaSo Intel has dropped Gamesutra due to there support of your Gaming News Cabal Fudge. Anti GamerGate article soon? Or like your e-mails are you hoping this narrative dies down soon?10/02/2014 - 12:14am
Andrew EisenWell, time to eat some dinner and work on the Hyrule Warriors guide until bedtime!10/02/2014 - 12:11am
 

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