Rumour: Microsoft is preparing an offer of $16B for Valve

Petekilla

Veteran
16 Jun 2023
1,335
1,363
Thing is, i think if Gabe sold Valve that he could start another platform the next year and everyone would probably migrate.

He seems to have a lot of love from the Steam crowd.

PlayStation used to have people the fans loved but Sony killed that. They got rid of most of the beloved people and made it so depersonalized.
Who gives a shit about loving executives that you never met. Ya’ll weird LMAO How is that working for Xbox? 😂
 

Box

May contain Snake
6 Apr 2023
3,380
3,693
Who gives a shit about loving executives that you never met. Ya’ll weird LMAO How is that working for Xbox? 😂

The execs represent the brand, if you want us to care about the brand and support their products they need better communication.

This is why Apple has such strong brand loyalty and so does Steam.
 

BLAZE

Active member
20 Feb 2024
133
130
The console market isn't tanking, it's growing. Slowly but keeps growing, as also happens with PC or mobile.

PS Plus is a profitable business model: to put there mostly old games that are no longer selling generate extra revenue/profit, and putting there old games doesn't affect sales, which keep growing. GP instead is a suicidal model because putting there many imporant games first kills the sales of such games and also other ones that aren't being played/bought, and also because to pay a company to put a game day one isn't the same than to pay that same company the same game 4 years after launch.

Regarding Xbox, it's declining and its market share keeps getting very small but should be included like the other ones to keep the chart consistent when comparing to previous years.


Who said Steam generates $9B/year? Not Valve, and the serious market researchers like Newzoo and IDG say PC makes around $40B/year instead (and everyone assume a huge portion of it is from Steam).

And PS game revenue (its games + addons sold on PSN, which is what should be compared to Steam) doesn't generate around $25B/year at all, Sony reported this. That figure is what the entire SIE does, including their PC/Xbox/Switch games, movies, hardware, accesories, game subs and so on.

As seen above, IDG says PS+Xbox+Switch generated in CY22 $12B in addon content + $9B in digital game sales. $21B for the three consoles. You can add here physical games if you want, making a total of $30B in CY22.

image.png

What SIE made, in this case FY23 (not CY22) from PSN is 1082967M yen in addons + 851619M yen in game sales = 1934586M ($12.34B)

If you also want to include the 180250M ($1.14B) from PS physical games, then the total goes up to $13.48B. Which as can be seen htere is a substantial increase from FY22 and I assume even more compared to CY22.

We don't know the game software made by Steam (game + addon sales), but should be an huge part of the around $40B game software reported by Newzoo and IDG.
Be realistic, most of SIE's revenue comes from PlayStation, there is no universe where Movies, PC and Mobile ports make at least 5 billion in revenue, it's impossible, so assuming that at least 25 billion of the 30 billion generated by SIE in 2023 is from PlayStation is totally coherent (yes, I'm considering Hardware sales and PS Plus subscriptions). Well, the most widely used and accepted estimates say that Steam's revenue in 2023 was almost 9 billion, there's no reason to assume that it's higher than that (and I'm sure that a lot of that 40 billion you use comes from games like Fortnite, Genshin Impact, Roblox and various other games that aren't on Steam but can be played on PC, probably hardware sales being one of the biggest contributors to that).
 
  • Like
Reactions: Box

voke

Banned
10 Jan 2023
1,194
1,692
Valve is a private company… doesn’t that mean they could technically sell to whomever they desire?
 

Darth Vader

I find your lack of faith disturbing
Founder
20 Jun 2022
7,366
10,926
I would love for this to happen.

Everything MS touches outside of their enterprise business turns to shit.

So they can take down xbox and steam all in one go.

Make it happen phil.
I don't understand these kinds of comments. Why would you want Microsoft to destroy Steam?
 

Yurinka

Veteran
VIP
21 Jun 2022
6,450
5,550
Be realistic, most of SIE's revenue comes from PlayStation, there is no universe where Movies, PC and Mobile ports make at least 5 billion in revenue, it's impossible, so assuming that at least 25 billion of the 30 billion generated by SIE in 2023 is from PlayStation is totally coherent (yes, I'm considering Hardware sales and PS Plus subscriptions). Well, the most widely used and accepted estimates say that Steam's revenue in 2023 was almost 9 billion, there's no reason to assume that it's higher than that (and I'm sure that a lot of that 40 billion you use comes from games like Fortnite, Genshin Impact, Roblox and various other games that aren't on Steam but can be played on PC, probably hardware sales being one of the biggest contributors to that).
As I said, what can be compared to Steam from PS, its digital games and addons (which includes the addons from physical games so would be a bit unfair) generated $12.34B in the last FY.

If you add physical games then it's $13.48B what PS does that can be compared to Steam. Not 25B, not 30B: $13B.

The rest of the $27.23B they did this FY is hardware, subscription, accesories, PC/mobile/rival consoles 1st party revenue, movie adaptations, etc.

Well, the most widely used and accepted estimates say that Steam's revenue in 2023 was almost 9 billion
No, no big game company uses vginsights or vgchartz sales estimations as source, they are just fan guesses.

The most widely used and accepted estimates in the industry are IDG and Newzoo (plus other professional market research companies), who say PC makes around $40B/year and everybody agrees most of it comes from PC.

They also say that when counting only game revenue, so game+addon sales only (not counting hardware, accesories, game subs, others) PC makes more / similar revenue than all consoles combined. Not just PS.
 
Last edited:

Systemshock2023

Veteran
8 May 2023
1,886
1,518
I don't understand these kinds of comments. Why would you want Microsoft to destroy Steam?

PS2 style Sony quasi monopoly. Icon eras endgame and daydream scenario. Don't tell me you didn't see that. All news regarding PC gaming on the site are negative, specially after Xbox waved the white flag recently.
 

BLAZE

Active member
20 Feb 2024
133
130
As I said, what can be compared to Steam from PS, its digital games and addons (which includes the addons from physical games so would be a bit unfair) generated $12.34B in the last FY.

If you add physical games then it's $13.48B what PS does that can be compared to Steam. Not 25B, not 30B: $13B.

The rest of the $27.23B they did this FY is hardware, subscription, accesories, PC/mobile/rival consoles 1st party revenue, movie adaptations, etc.


No, no big game company uses vginsights or vgchartz sales estimations as source, they are just fan guesses.

The most widely used and accepted estimates in the industry are IDG and Newzoo (plus other professional market research companies), who say PC makes around $40B/year and everybody agrees most of it comes from PC.

They also say that when counting only game revenue, so game+addon sales only (not counting hardware, accesories, game subs, others) PC makes more / similar revenue than all consoles combined. Not just PS.
I don't see a problem with considering subscriptions and hardware, just as I don't see a problem with considering Steam Deck and EA Play in Valve's revenue calculations. In fact, it's pretty obvious that Steam isn't responsible for most of that 40 billion, the most realistic estimates (again, they're estimates) put it at a maximum of 9 billion in revenue, which would make Steam responsible for almost 1/4 of PC gaming revenue, not bad, but it makes it pretty clear how decentralized PC Gaming is.
 

Yurinka

Veteran
VIP
21 Jun 2022
6,450
5,550
I don't see a problem with considering subscriptions and hardware, just as I don't see a problem with considering Steam Deck and EA Play in Valve's revenue calculations. In fact, it's pretty obvious that Steam isn't responsible for most of that 40 billion, the most realistic estimates (again, they're estimates) put it at a maximum of 9 billion in revenue, which would make Steam responsible for almost 1/4 of PC gaming revenue, not bad, but it makes it pretty clear how decentralized PC Gaming is.
Again, the $40B ones are not fan guesses, are the proffessional market research firms that use the top publishers and platform holders. The $9B is a fan guess as credible as your or my estimate or any random number created by VG Chartz.

And well, I'd say it's very hard to believe that Steam does only around 25% of the PC game revenue. It always has been said to be around 70-80% (my bet), sometimes even 90%.

We know the Epic store only makes money basically for Fortnite (in fact the store doesn't give them profits), we also know GoG is tiny, so should be Microsoft's store.

I mean, this FY23 fiscal year Sony alone made for themselves (after removing Valve's cut) over half a billion from PC. It's impossible that Steam would do only $9B. Sony shouldn't be even the top 10 publisher of Steam (in FY22 was top 20).
 
Last edited:

TigerFang

Well-known member
7 Mar 2024
341
267
If you don't already get it.

Games are hardware locked not software locked.

This is a common misunderstanding.

Death Stranding is on GeForce now, but if you use GeForce now on Xbox hardware, you will not be able to play Death Stranding.
 

Airbus

Veteran
30 Jun 2022
1,860
1,672
I would love for this to happen.

Everything MS touches outside of their enterprise business turns to shit.

So they can take down xbox and steam all in one go.

Make it happen phil.
All things considered this will make ms position alot stronger

Steam is the biggest ecosystem on pc

And sony already start releasing first party games on steam

If microsoft integrated steam operating system on xbox its basically xbox owned playstation games and huge chunk of pc market engagement at the same time with this one moves

Thats why i said sony releasing games on pc are bad investment
 
Last edited:
OP
OP
Eternal_Wings

Eternal_Wings

Dein Nomos
24 Jun 2022
2,627
3,435
All things considered this will make ms position alot stronger

Steam is the biggest ecosystem on pc

And sony already start releasing first party games on steam

If microsoft integrated steam operating system on xbox its basically xbox owned playstation games and huge chunk of pc market engagement at the same time with this one moves

Thats why i said sony releasing games on pc are bad investment
If this ever happens then Microsoft will likely abandon consoles once and for all. But also Sony will stop releasing on Steam and forced to launch their own storefront.
 
  • Like
Reactions: Diah and Airbus