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Understanding Steam’s Commission on Game Revenue
When planning your game’s budget, it is crucial to factor in Steam’s commission as it significantly affects your net revenue. Steam, a major digital distribution platform for games, has a tiered revenue share model which dictates the percentage it takes from your game’s sales.
Steam’s Revenue Share Model
- Tier 1: If your gross sales revenue is under $10 million, Steam takes a 30% commission.
- Tier 2: Once you exceed $10 million in sales revenue, the commission reduces to 25% for the amount above $10 million.
- Tier 3: For sales beyond $50 million, the commission further drops to 20% for the amount over $50 million.
This tiered system incentivizes high sales volumes, rewarding successful titles with lower commission rates on incremental sales. It is important to keep these thresholds in mind when projecting your potential earnings and planning your budget, especially if you anticipate hitting these sales milestones.
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Other Financial Considerations
In addition to Steam’s commission, also consider:
- VAT and regional taxes: Depending on the region, taxes may affect the final revenue.
- Discounts and promotions: These can decrease your net revenue but are often necessary to increase sales volume.
- Refunds and chargebacks: These can also impact your earnings and should be accounted for in your financial planning.
Overall, thorough financial planning including all these aspects will ensure that you have a clear understanding of your potential earnings from Steam sales.