Because it doesn't solve the financial issues for 99% of the devs. Like I said, the scenario where the dev depended on a 5 to 10% better cut to survive is very narrow in scope and won't even save those companies in the first place because Game development, apart from GAAS, is not a continuous money-earner in the first place. For a developer that is in financial trouble a better cut just changes the bankruptcy a month or two to the future.
This is not the budgeting I am talking about. I talk about budgeting your game development expenses.
electricity and other utilities
wages
software licenses
taxes
3rd party contracting
marketing
voice work
trade shows
lawyers
financial advisors (<-----!!!!!)
30%cut for digital distribution
retail cut for selling the game on shelves
publisher cut if applicable
not all those points are applicable for every dev but those that do have to budget all of them and hold it against their projected game sales. The 30% cut is just one of the things you have to take into account when making a game.
The point is, that the game is either profitable or not. The cut only changes that for very few specific cases. The % isn't a sliding scale of profitability. It. is. just. another. expense. You can be profitable with your game with a 99% cut, and you can go bankrupt with your game with a 1% cut, hell you could go bankrupt with your game having a -1000% cut.
It seems like people infer that a 30% cut means that 30% of the game's budget goes to Steam. This is ridiculous.
The cut doesn't bankrupt devs. low unit sales are!
Again. This has nothing to do with pricing your game. I am talking about pumping money into your game. And you can absolutely pump an immense amount of money into a game and software licensing is just a tiny cost.
longer development time
better art
better animations
greater scope
voice work
polishing
We hear success stories on Steam from Indie devs more often than in previous years. Every game has the same chance, it has nothing to do with quality, size of your development team, or how much sweat and tears a dev has brought into making it.
It is only luck and SOMETIMES chasing what is currently "in". The cut has nothing to do with that.
You are putting words in my mouth. It is not hard work that is rewarded, it is genre, luck, timing, word of mouth.
Why do devs "deserve" a better cut?
The devs have to ask if Valve deserves the current cut. And for the silent majority of devs the answer is a 250 million userbase, 120 million monthly CCU resounding YES!
The whole argument about a better cut falls flat on the face when all those "deserving" devs could sell their games with a 0% cut on their own website. And some do! But for most, the expenses in handling financial transactions, refunds, and customer complaints are bigger than what they "lose" to Valve.
In the end, what kind of indies are we talking about? the 80% who don't even sell 1000 units? (median sales on Steam were 1500 units in 2019 with a median price of 12 dollars) The ones who sell 10.000 units and would already be a massive success for most of them?
Have you even considered about what kind of money we are talking about here?
Let's go with your range of 5 to 30 bucks and 1000 unit sales, while we lower the cut from 30% to 20%
with a 5 dollar price point, the dev will get 500 dollar more
with a 30 dollar price point, the dev will get 3000 dollar more.
Those are the numbers whole existences of game developer studios hang on? Spoiler alert: for 99% of devs it is not! Show me the devs who can make a whole other game if they had just 500 dollar more.
Even if we go with the generous 10.000 unit sales, the numbers would be 5.000 and 30.000 dollars. A bunch of money, but a game that needed 10.000 sales to break even would also have bigger expenses in the first place.
The point is: the cut doesn't make or break a developer, unit sales and unit sales expectations are.
I've re-read and re-wrote how to respond to these points a couple of times and found myself repeating some points when responding to this. I eventually ended up consolidating my response as much as I could.
The points you written come off as disuadding a cut lower than 30%.
A lower cut on the sale of a game on steam would mean that, in turn, a dev or publisher gets more out of the sale of that game, be it $0.50 or $1 per copy.
In the case of small or medium indie devs, why is this small earning per copy not worthwhile for them, why should they be disuadded from it? They're getting that extra money from the sale of their game.
Them, not valve.
It could be $50, $100 or $500 more earned if the cut were lower than 30%. This is not a worthwhile thing to happen because....it is a low amount? They are better off with the $0 they earn under the current and standard 30% cut, instead of getting (slightly) more if valve's cut was lower?
I wrote before: Devs and Pubs (in particular indies) prefer sales on steam due to visibility and reviews being counter more towards a game's rating, furthermore a larger (if not largest) chunk of purchases of games occur on the steam store itself.
The sales from steam keys is good and all, but it doesn't aid their visibility much, and a consumer is more likely to buy a steam key from sites such as GMG, Humble or Fanatical etc., then to purchase directly from the dev or publisher's website. Key selling site's would have a lower cut than steam to encourage pubs and devs to sell through them, but a Steam purchase serves visibility, and once again; steam store itself gets most of the traffic for purchase of steam games.
Unit sales (on steam store) obviously is a major factor, and a lower cut even if it doesn't alleviate the impact of a gaming not selling much, would allow the dev or pub to they earn more on the sale of their game, be it $50, $100, etc.
Deserve not being the proper word to use is understandable, but I'm finding it difficult to take in that a lower cut isn't worthwhile as it won't earn them a bigger revenue, because that small extra revenue (from the lower cut) goes to the dev and pub. They would get that amount, instead of it going to valve.
Writing up a detailed set of info like what wrote is coming off as the amount that a dev or pub could earn from a lower cut is so irrelevant, that it's better that valve gets it instead.
...but valve didn't develop or publish the game; they host it on their store, and yes valve must get a cut because they are the host, etc., but as is, this far into the store's life and there being a large volume of sales going on, I think that valve should lower their cut.