Randy Pitchford has a thing for making headlines. Referring to the hugely popular Steam digital distribution platform, the Gearbox boss recently told Maximum PC "I don't trust Valve." Having started his company making Half-Life expansions, Pitchford quickly couched that statement saying, "I, personally, trust Valve. But I'm just saying, honestly, I think a lot of the industry doesn't."
Of course, the idea that an independent video game developer would perceive one of the most successful digital distribution platforms for PC games in existence being controlled by essentially a competitor as troubling is ... well, it's enormously understandable. The question then is, why haven't more developers spoken out? While Apple's iTunes Music Store regularly gathers plenty of music industry grumping, Steam has coasted by on a wave of industry support.
The solution? Says Pitchford, "It would be much better if Steam was its own business." If Valve spun off the content delivery system, it would also remove the perceived conflict of interest Pitchford takes umbrage with. "Steam helps us as customers, but it's also a money grab, and Valve is exploiting a lot of people in a way that's not totally fair," Pitchford says. "Valve is taking a larger share than it should for the service it's providing. It's exploiting a lot of small guys."
Yeah. We expect to hear more on this all week long.
Reader Comments (95)
Posted: Oct 7th 2009 8:52PM Koopaconn said
He should just star in a sex tape, it would save him all this energy of coming up with controversy. It worked for Paris Hilton.
Posted: Oct 7th 2009 8:54PM (Unverified) said
Valve has a monopoly because Valve do it right.
Posted: Oct 7th 2009 8:54PM FluffnNonsense said
And retailers don't take a cut? Amazon.com doesn't get a cut for selling your game? Or is their cut lower than the arbitrary "too much" number?
Don't sell it on Steam then. Go to Direct2Drive, or sell it on your own website and have people download it from you there.
I don't see why this is an issue. There is no law that this game must be distributed on Steam.
Don't sell it on Steam then. Go to Direct2Drive, or sell it on your own website and have people download it from you there.
I don't see why this is an issue. There is no law that this game must be distributed on Steam.
Posted: Oct 7th 2009 9:16PM FluffnNonsense said
Way to make a stupid comment.
""Valve is taking a larger share than it should for the service it's providing. It's exploiting a lot of small guys.""
So they think that Valve takes more money for it's digital distribution service than it should. Firstly, I want to know how they feel about the cut that box and mortar retailers take and why that's not "too much" and why the cut that Valve is taking is "too much".
Bandwidth costs money, maintaining a storefront costs money, building and maintaining servers and networks cost money. I don't know how much Valve takes compared to brick and mortar stores, which have similar overhead cost, but I'd like to know why Randy Pitchford thinks it's "too much" and what he thinks is a reasonable fee for letting another company distribute his product.
In the end, if Valve screws over the little guys by demanding too large of a cut, the little guys don't have to use Steam to distribute their product. Also, this is the first time I've ever heard a developer complain about the cost of listing on Steam, so I'm hesitant to believe that it's "too much."
So why don't you enlighten me with what the "point of the article" was, if not that Randy Pitchford thinks Steam is price gouging developers.
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""Valve is taking a larger share than it should for the service it's providing. It's exploiting a lot of small guys.""
So they think that Valve takes more money for it's digital distribution service than it should. Firstly, I want to know how they feel about the cut that box and mortar retailers take and why that's not "too much" and why the cut that Valve is taking is "too much".
Bandwidth costs money, maintaining a storefront costs money, building and maintaining servers and networks cost money. I don't know how much Valve takes compared to brick and mortar stores, which have similar overhead cost, but I'd like to know why Randy Pitchford thinks it's "too much" and what he thinks is a reasonable fee for letting another company distribute his product.
In the end, if Valve screws over the little guys by demanding too large of a cut, the little guys don't have to use Steam to distribute their product. Also, this is the first time I've ever heard a developer complain about the cost of listing on Steam, so I'm hesitant to believe that it's "too much."
So why don't you enlighten me with what the "point of the article" was, if not that Randy Pitchford thinks Steam is price gouging developers.
Posted: Oct 7th 2009 9:00PM (Unverified) said
I understand the concerns especially for small time devs but lets face it, Steam more then likely sells more copies then retail boxes or close it now days.
I know id rather just download a game from steam and have it on my hard drive or on an account that even if my hardware is destroyed I can get it back by simply downloading it again.
If its making indi devs lose half their money then maybe it needs to be looked at by some kind of industry watchdog if such a thing exists for the gaming industry in the US.
I really think steam is one of the greatest online delivery inventions ever made and one great thing for the gaming industry and I'm not a valve fanboy, I actually think the amount of other games on steam is the most wonderful part of it.
I know id rather just download a game from steam and have it on my hard drive or on an account that even if my hardware is destroyed I can get it back by simply downloading it again.
If its making indi devs lose half their money then maybe it needs to be looked at by some kind of industry watchdog if such a thing exists for the gaming industry in the US.
I really think steam is one of the greatest online delivery inventions ever made and one great thing for the gaming industry and I'm not a valve fanboy, I actually think the amount of other games on steam is the most wonderful part of it.
Posted: Oct 7th 2009 9:06PM Look At This Suit said
That's the thing though. It IS a great tool. But Valve is already filthy stinkin' rich, which makes this somewhat alarming. If they're taking a lot of money from those sales, it's a problem. They're comfortable enough at the top of the industry, they can afford to take less of that.
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Posted: Oct 7th 2009 8:59PM (Unverified) said
If this were Microsoft, everyone would be in complete agreement. But should anyone dare say one bad thing about Valve, everyone loses it.
Posted: Oct 7th 2009 9:06PM Helghast102 said
the problem is people aren't reading the article properly
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Posted: Oct 8th 2009 4:10AM Garlador said
Except Valve has earned people's trust while Microsoft has earned people's skepticism. I think this article is blowing this relatively off-hand comments out of proportion. He sounds more worried that Valve might get greedy down the line, which is a legitimate fear, but given their current track record, I think developers don't have much to fear for now.
Posted: Oct 7th 2009 9:12PM Look At This Suit said
It's discussions like these where I wish Joystiq had forums. The comment-thread format is extremely hard to read when there's a discussion going on like this
Posted: Oct 7th 2009 9:29PM einhanderkiller said
Comment system is fine. Joystiq just needs a better comment system.
Shacknews does comments right.
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Shacknews does comments right.
Posted: Oct 7th 2009 9:19PM Jrinswand said
Sounds to me like this Randy Pitchford person has eaten one too many sour grapes.
I've never thought about it that way before (Steam being a distribution service owned by the competitor of many game developers), but honestly, I don't think it's that big a deal. I, for one, am happy for Valve. Think of it this way: Would you rather have a Steam run by a fantastic, hard-working company like Valve, or would you rather have Steam run by a money-grubbing whoreson like, for instance, Microsoft?
I've never thought about it that way before (Steam being a distribution service owned by the competitor of many game developers), but honestly, I don't think it's that big a deal. I, for one, am happy for Valve. Think of it this way: Would you rather have a Steam run by a fantastic, hard-working company like Valve, or would you rather have Steam run by a money-grubbing whoreson like, for instance, Microsoft?
Posted: Oct 8th 2009 3:49AM alinos said
they have that its called games for windows live AKA XBOX 360 on PC, which is a pain in the ARSE when a game like DoW II installs into steam off of a disk based copy mandatory but instead of using steams servers and what not forces you to go through GFWL which constantly either tells me its updating cant log on and ARE YOU SURE YOU WANT TO PLAY OFFLINE YOU WONT GET ANY ACHIEVMENTS?
IM A FUCKING PC GAME ACHIEVMENTS ARE USELESS I DONT WANT THEM AND I HAVE A LIFE THAT DOESNT INVOLVE ME TRYING To get every little bitty point i can or buying AVATAR lengend of ang because someone said i can get a 1000 easy gamerpoints
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IM A FUCKING PC GAME ACHIEVMENTS ARE USELESS I DONT WANT THEM AND I HAVE A LIFE THAT DOESNT INVOLVE ME TRYING To get every little bitty point i can or buying AVATAR lengend of ang because someone said i can get a 1000 easy gamerpoints
Posted: Oct 7th 2009 9:20PM (Unverified) said
Steam is an f'in rip-off. High game prices and no refunds for any reason whatsoever, even if they sell you a horribly broken game. It amazes me what Valve fanboyism has wrought.
Posted: Oct 7th 2009 10:51PM CaramelZappa said
Most brick and mortar stores won't let your return any game for any reason, unless it's sealed.
If you don't like steam, shut up and go the gamestop.
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If you don't like steam, shut up and go the gamestop.
Posted: Oct 7th 2009 9:24PM (Unverified) said
Wow Randy, thanks for making me feel like an asshole... I just pre-ordered Borderlands on Steam because it saved me 5 bucks.
Posted: Oct 7th 2009 9:36PM TheDarkWayne said
I hate guys like Randy. He's just like cliffy B, only not as hip. Just shut the fuck up and make your games. I mean he might have merit on this one, but given his track record of telling bungie and IW to do new ips, that big fat lie about Gearbox's name, and that shit about achievements, he just needs to shut up and run the studio better.
Posted: Oct 7th 2009 9:42PM LaughingTarget said
Problem: Your company doesn't think the deal your getting through a distribution channel is fair.
Solution: Don't distribute through that channel.
There we are, now stop complaining.
Solution: Don't distribute through that channel.
There we are, now stop complaining.
Posted: Oct 7th 2009 10:06PM ducttapeBigSexy said
"The question then is, why haven't more developers spoken out?"
The same reason why I've been downvoted for pointed out that Valve is overrated - Valve is viewed as god's gift to gaming (especially by PC gamers because no other company really cares about their favorite platform)
Seriously, I find it amazing that people love a company that has some of the worse DRM in the industry (tying my ability to play a game to a company's server is worse than StarForce), they take forever to make an expansion using an old game engine, and they make lame zombie games.
Watch - just for stating the truth about Valve, I'll get downvoted. And I'm just a random guy on the Internet - just imagine if I was trying to sell a game!
The same reason why I've been downvoted for pointed out that Valve is overrated - Valve is viewed as god's gift to gaming (especially by PC gamers because no other company really cares about their favorite platform)
Seriously, I find it amazing that people love a company that has some of the worse DRM in the industry (tying my ability to play a game to a company's server is worse than StarForce), they take forever to make an expansion using an old game engine, and they make lame zombie games.
Watch - just for stating the truth about Valve, I'll get downvoted. And I'm just a random guy on the Internet - just imagine if I was trying to sell a game!
Posted: Oct 7th 2009 10:10PM SUBZERO08 said
I read this in Maximum PC, and I definitely agree with Pitchford.
Posted: Oct 7th 2009 10:30PM Helghast102 said
oh god not more of this shit (before it gets deleted, this was a reply to spam.. LOOOONG spam)
Posted: Oct 7th 2009 10:36PM CaramelZappa said
Valve system is no different than microsofts or the PSN for distributing games digitally.
But those companies are huge publically traded corporations set out to make huge piles of money.
Valve is a relatively small private PC developer. They wouldn't do anything stupid like that to hurt what they already have. Buying any game on steam probably increases your likelyhood of buying valve games, that's more than enough. I really don't think there's a "conflict of interest" any more than microsoft launching the new halo game on a platform that Activision is launching MW2.
But those companies are huge publically traded corporations set out to make huge piles of money.
Valve is a relatively small private PC developer. They wouldn't do anything stupid like that to hurt what they already have. Buying any game on steam probably increases your likelyhood of buying valve games, that's more than enough. I really don't think there's a "conflict of interest" any more than microsoft launching the new halo game on a platform that Activision is launching MW2.
Posted: Oct 7th 2009 10:39PM (Unverified) said
Hmm. Valve takes a cut, but at the same time you're evading both the retailer's share of the profit (which goes to valve instead) and the cost of manufacture. Assuming Valve's cut includes some amount of the cost to manufacture a retail box, it's still not really a situation that will hurt anyone but whoever your publisher uses for manufacturing.
Posted: Oct 7th 2009 10:53PM StrikeFear13 said
Meh.
Posted: Oct 7th 2009 11:44PM Neowyrm said
The picture is very appropriate considering that last line.
Posted: Oct 8th 2009 2:10AM CaramelZappa said
Maybe it's not good fore developers, but I'm a consumer.
How I see it, Valve is easily my platform of choice. I don't want to put in 2 dvd's and wait while a huge installer takes up all of my screen space to install a game, I don't want to have to go the the store every time I buy a game.
He can complain all he wants, and there are alternatives like D2D or of course brick and mortar stores.
But personally, I don't even see PC as a viable platform anymore. I love the convenience of steam and the community. It brings to the PC the simplicity and community that console owners love. I don't know if I'm going to buy borderlands or not, but if I am, it's going to be on steam. If you release your game on every platform except for steam, unless it's the game of the century I'm probably not going to buy it.
Obviously I am not every customer, but if they want my sale, they're gonna sell it on steam. If they don't want to pay valve whatever premium it is they want, then they get no sale at all from me, because I'm sick of playing PC games from a dvd.
How I see it, Valve is easily my platform of choice. I don't want to put in 2 dvd's and wait while a huge installer takes up all of my screen space to install a game, I don't want to have to go the the store every time I buy a game.
He can complain all he wants, and there are alternatives like D2D or of course brick and mortar stores.
But personally, I don't even see PC as a viable platform anymore. I love the convenience of steam and the community. It brings to the PC the simplicity and community that console owners love. I don't know if I'm going to buy borderlands or not, but if I am, it's going to be on steam. If you release your game on every platform except for steam, unless it's the game of the century I'm probably not going to buy it.
Obviously I am not every customer, but if they want my sale, they're gonna sell it on steam. If they don't want to pay valve whatever premium it is they want, then they get no sale at all from me, because I'm sick of playing PC games from a dvd.
Posted: Oct 8th 2009 9:42AM ducttapeBigSexy said
People who claim digital distribution is SO much better than physical media fall into the same category as Mac people who think PCs are just too difficult - they only say that because they really want to believe it.
1. Hate swapping discs? Yeah, it's very difficult to push a button on the front of your computer and swap a disc...
2. Waiting for an install? I guarantee that your DVD drive is faster than your Internet connection.
3. Full screen installer? Ever heard of Alt-Tab?
4. Going to the store? Ever heard of sites like Amazon.com? Plus, I'm guessing you shop at a Walmart or Target every now and then - why not buy the game then?
5. You don't play PC games from a DVD - you play them from your hard drive. Just like Steam. Except that you're not required to run a program in the background that's sucking up system resources.
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1. Hate swapping discs? Yeah, it's very difficult to push a button on the front of your computer and swap a disc...
2. Waiting for an install? I guarantee that your DVD drive is faster than your Internet connection.
3. Full screen installer? Ever heard of Alt-Tab?
4. Going to the store? Ever heard of sites like Amazon.com? Plus, I'm guessing you shop at a Walmart or Target every now and then - why not buy the game then?
5. You don't play PC games from a DVD - you play them from your hard drive. Just like Steam. Except that you're not required to run a program in the background that's sucking up system resources.
Posted: Oct 8th 2009 10:18AM CaramelZappa said
It's all a matter of what you want, that's why digital distribution can sit side by side with retail.
1. Who cares if it's easy? It's one more thing I don't want to bother with, so why should I?
2. It might be faster, but it's more invasive. Most installers have you pressing next way too often, steam I just tell it to download, go about my buisness and later it's installed. I like that.
3. A lot of those installers don't work well with alt-tab and tend to take up more system resources than they should.
4. Amazon is GREAT, and I usually buy games there, but for PC games steam is still much more convenient for me, and I don't have to wait for games to ship to me (which will always take longer than downloading)
5. You still have to swap discs for each game, unless you crack it, which is another unnecessary hassle.
And right now steam is using up a whopping 14mb, out of my 4gb of ram. What a hog. And 0% of my CPU! Unbearable! Aim on the other hand is using up 50mb of ram.
Not to mention steam doubles as instant messaging software. A lot of games do NOT like it when you alt tab to talk to someone, but with steam I can shift tab to my friends list and invite them all to my TF2 game.
So you can stick to your DVD drives and boxes, but I just don't want to deal with it when I don't have to. Like a mac user who doesn't want to deal with a PC? Computers are SUPPOSED to make things easier, why make them harder on purpose? Maybe it's not better for you, but it's my platform of choice, so it's where I buy my games. Do you still buy music on CD's too, just because you love to have a physical product? If you do, that's fine, but don't bash other people because they want to use some of the conveniences that come with modern technology.
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1. Who cares if it's easy? It's one more thing I don't want to bother with, so why should I?
2. It might be faster, but it's more invasive. Most installers have you pressing next way too often, steam I just tell it to download, go about my buisness and later it's installed. I like that.
3. A lot of those installers don't work well with alt-tab and tend to take up more system resources than they should.
4. Amazon is GREAT, and I usually buy games there, but for PC games steam is still much more convenient for me, and I don't have to wait for games to ship to me (which will always take longer than downloading)
5. You still have to swap discs for each game, unless you crack it, which is another unnecessary hassle.
And right now steam is using up a whopping 14mb, out of my 4gb of ram. What a hog. And 0% of my CPU! Unbearable! Aim on the other hand is using up 50mb of ram.
Not to mention steam doubles as instant messaging software. A lot of games do NOT like it when you alt tab to talk to someone, but with steam I can shift tab to my friends list and invite them all to my TF2 game.
So you can stick to your DVD drives and boxes, but I just don't want to deal with it when I don't have to. Like a mac user who doesn't want to deal with a PC? Computers are SUPPOSED to make things easier, why make them harder on purpose? Maybe it's not better for you, but it's my platform of choice, so it's where I buy my games. Do you still buy music on CD's too, just because you love to have a physical product? If you do, that's fine, but don't bash other people because they want to use some of the conveniences that come with modern technology.
Posted: Oct 8th 2009 10:55AM ducttapeBigSexy said
See, you're wrong - the whole point of the Internet is to bash people who don't completely agree with your views, even if their views don't really affect you or your life in any meaningful manner :P
And, you do raise valid points, but, I'll admit, I do like my physical media. I was just in a really argumentative mood this morning :)
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And, you do raise valid points, but, I'll admit, I do like my physical media. I was just in a really argumentative mood this morning :)
Posted: Oct 8th 2009 3:28PM CaramelZappa said
You're right, my opinion is "unvalid" because I don't like buying my games in an archaic format when platforms that are better (in my opinion) are available.
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Posted: Oct 8th 2009 2:43AM illuminatieverywhere said
Oh yeah, the only reason is because valve brings the most diverse and different games to the table.
Portal check.
Teamfortress 2 check.
Half life 2 check.
Counterstrike source check. Better then halo, and is better then call of duty modern warfare.
Left 4 dead check. Coolest zombie game ever created. Multiplayer of course.
Dod:source check. Better then people buying call of duty everyear for the same game, repeat ideas.
Zeno Clash check. one of the most diverse, fun games i have ever seen this year, it is a surreal/beatemup/fps combo everyone should play..
Do not forget the classic version of these games that are unprecedented in online structure and diversity.
So heres to originality check that the game industry soo needs right now.
Change or die.
http://myspace.com/fearofyours.
Portal check.
Teamfortress 2 check.
Half life 2 check.
Counterstrike source check. Better then halo, and is better then call of duty modern warfare.
Left 4 dead check. Coolest zombie game ever created. Multiplayer of course.
Dod:source check. Better then people buying call of duty everyear for the same game, repeat ideas.
Zeno Clash check. one of the most diverse, fun games i have ever seen this year, it is a surreal/beatemup/fps combo everyone should play..
Do not forget the classic version of these games that are unprecedented in online structure and diversity.
So heres to originality check that the game industry soo needs right now.
Change or die.
http://myspace.com/fearofyours.
Posted: Oct 8th 2009 9:50AM ducttapeBigSexy said
Originality?
Portal: It's a spiritual sequel to a college project. And the original wasn't made by Valve
Teamfortress 2: Sequel. The original wasn't even developed by Valve.
Half life 2: Sequel - plus you're talking about a game that came out 5 years ago
Counterstrike source: Remake. The original was a community mod for HL (not made by Valve)
Left 4 dead: Okay, fine, I'll give you that one - but they're already driving it into the ground with their full priced expansion called L4D2.
Dod:source: Remake - plus, this began as a non Valve mod
Zeno Clash: This was published by Valve - Valve didn't develop it.
"So heres to originality check that the game industry soo needs right now." Yeah, too bad your examples don't prove your point...
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Portal: It's a spiritual sequel to a college project. And the original wasn't made by Valve
Teamfortress 2: Sequel. The original wasn't even developed by Valve.
Half life 2: Sequel - plus you're talking about a game that came out 5 years ago
Counterstrike source: Remake. The original was a community mod for HL (not made by Valve)
Left 4 dead: Okay, fine, I'll give you that one - but they're already driving it into the ground with their full priced expansion called L4D2.
Dod:source: Remake - plus, this began as a non Valve mod
Zeno Clash: This was published by Valve - Valve didn't develop it.
"So heres to originality check that the game industry soo needs right now." Yeah, too bad your examples don't prove your point...
Posted: Oct 8th 2009 9:54AM ScottG13 said
I think that's totally reasonable. In most industries, you don't want a manufacturer to also be a retailer if you are also a retailer. They have an advantage of owning two levels of the model and can leverage that to harm the competitive landscape.
Posted: Oct 8th 2009 10:07AM strommsarnac said
The Orange Box sucked for those of us who already owned everything but TF2 and Portal. And that "well, gift HL2 and Ep1 to someone else" was just as much BS, that person would have to end up buying Orange Box anyways, so Valve gets to shaft two people.
Look, I'm one of the HL beta testers and was given a free retail copy of it when it was released. However, I'm also one of the original few CS pre-public beta testers from back when there was only 30 or so of us. I should have seen the writing on the wall when the deal with Valve was struck screwing the handful of us who were promised a cut.
Do I trust Valve/Steam, no. Why? They keep making promises than what they realse has been radically changed.
What happens when Steam is no longer active? Will all those games you've paid for will no longer work. Even just local?
Look, I'm one of the HL beta testers and was given a free retail copy of it when it was released. However, I'm also one of the original few CS pre-public beta testers from back when there was only 30 or so of us. I should have seen the writing on the wall when the deal with Valve was struck screwing the handful of us who were promised a cut.
Do I trust Valve/Steam, no. Why? They keep making promises than what they realse has been radically changed.
What happens when Steam is no longer active? Will all those games you've paid for will no longer work. Even just local?
Posted: Oct 8th 2009 10:48AM jebathan said
Even if you owned HL2 and EP1, The Orange Box was still a good deal. Right now if you were to buy TF2, Portal, and EP2 it would cost you $55! I'm not sure what the price of each game was at launch, but they certainty didn't cost less than they do now.The Orange Box cost $50 when it came, so you saved $5.
Valve has done an amazing thing with Steam and just because they provide a service that they also deliver content to doesn't make them to powerful. If developers are worried about the cut, deliver the game somewhere else. As many have said, this is no different then bring your game to a console, where you have to deal with licensing fees through Microsoft, Nintendo, or Sony, who all also publish games for their platform. Steam is a platform, just like a console, except it runs on your computer.
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Valve has done an amazing thing with Steam and just because they provide a service that they also deliver content to doesn't make them to powerful. If developers are worried about the cut, deliver the game somewhere else. As many have said, this is no different then bring your game to a console, where you have to deal with licensing fees through Microsoft, Nintendo, or Sony, who all also publish games for their platform. Steam is a platform, just like a console, except it runs on your computer.
Posted: Oct 8th 2009 12:02PM Figgellum said
It is kind of odd, though not unethical, to have other developers game sales directly fund Valve's competing games. However, without Steam a lot of these indie games wouldn't have sold 10 copies. Do you think Audiosurf would have made as much as it did if the dev was selling it through paypal on his ugly-ass website? Probably not.
Posted: Oct 8th 2009 3:42PM CaramelZappa said
Anything you buy for the xbox helps directly fund halo and gears and anything you buy for the ps3 helped fund uncharted and god of war 3. It's no different.
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Posted: Oct 8th 2009 12:39PM AtomicPlayboy said
Don't like Valve's policies and pricing for Steam? Then go to Direct2Drive, Impulse, etc. Wonderful things about the free market: competition and choice.
Posted: Oct 8th 2009 2:20PM likedamaster said
Using Steam for distribution and complaining about it. What a bunch of Noob developers. I'm with LaughingTarget on this one.
Posted: Oct 8th 2009 3:13PM juggalotusmx said
Shut the Fuck up, if you dont want to sell your shit on steam then start your own steam and see how long it takes to get perfect and popular "INVESTING millions" of course, or just ride the valves bandwagon of success and claim it as yours with your shitty products that are not even close to any valves game.








