07-02-2005, 01:43 AM
http://www.gamecloud.com/article.php?article_id=479
Quote:Distribution Revolution Q&A: Valve
Doug Lombardi of Valve begins our series of Q&As on the new trend in digital PC game distribution.
More and more, gamers are seeing major AAA PC games available both in retails stores and increasingly available via paid Internet download. Is the long awaited move from brick and mortar stores to PC game digital distribution finally going to happen? Gamecloud decided to examine this growing trend by getting opinions from game developers, publishers and other members of the industry to see if this move will change how PC gamers get their games. First up is Doug Lombardi, the marketing manager of Valve who created their Steam system to distribute all of their games, including Half-Life 2.
Gamecloud - First, why did Valve wish to get into distributing its games via the Internet?
Doug Lombardi - After shipping a number of multiplayer games, such as Counter-Strike and Team Fortress Classic, we wanted to solve a number of issues that would improve the customer experience. We made simple advancements such as including a server browser within the game itself that, at the time, was a nice step forward in putting players together. But, as online gaming grew, it was obvious that things such as auto-updating and more sophisticated anti-cheat measures were going to be requirements. We couldn't find an existing solution for these issues, so we started development internally. Several other features have been added along the way. Steam is now the backend for all of our games, serving millions of gamers, allowing us to conduct more robust and secure betas of new products, and sell the final products directly.
Gamecloud - While Steam was around before Half-Life 2 was released, that game most likely tested Steam's viabilty when it was launched last November. Overall is Valve pleased with the way Steam has handled the load?
Doug Lombardi - Absolutely. In addition to allowing us sell our games, it enabled the prevention of the "zero day" piracy problems other major releases incurred between gold and their launch days last year. It's also allowed us to serve several updates directly to our customers since launch - including the delivery of new games such as Half-Life 2:Deathmatch and soon Lost Coast - and aided in our anti-cheat efforts.
Gamecloud - In addition to the software, Valve has had to pay for a lot of server and backbone infrastructure for Steam to work. Is it fair to say that the company has not yet paid for the development and infrastructure of Steam?
Doug Lombardi - We have not released any financials on Steam nor Steam sales.
Gamecloud - Valve will soon lose VUGames as its retail store publishing partner. Will the company's new retail partner allow Valve to have a better deal on its Steam sales than VUGames did?
Doug Lombardi - So far, Steam has been solely a Valve venture. However, we're extending the many opportunities Steam affords to third parties and we're happy to distribute any developer or publisher's games via Steam.
Gamecloud - When will we hear more about Steam being used by other developers besides Valve's games and is it Valve's intention to have Steam licenses be a solid revenue stream for the company, much like its Source engine license?
Doug Lombardi - The first announcement will be made in early July. More to follow.
Gamecloud - Many people are saying that PC gaming will become less of a force in retail stores, especially when the next generation of console games (PS3, Xbox 360) are released. Do you believe that Internet distribution will become a bigger force in selling PC games in the next few years, even for high profile titles?
Doug Lombardi -There's no doubt that consoles account for a huge part of the total gaming platform. However predictions that the Windows gaming platform is on the verge of extinction are usually based on reports of retail sales and do not account for any of the many other revenue streams available from PC-MMRPG subscription fees, Steam sales, OEM sales, etc.
Gamecloud - Of course, distributing on the Internet also frees game developers from dealing directly with publishers. Do you feel that this will also allow the freedom for games to be more creative and take risks in gameplay design and content?
Doug Lombardi - Creativity and risk are not popular in the green light room at the publishers' offices these days - ask any developer who's pitched an original game idea in the last 12 months. So yes, the ability to create a game of any size and completely of your own design is a central benefit to this alternative form of distribution. Counter-Strike is a great example of a project that would have been killed in a traditional green light meeting (no single player, extreme difficulty from the first moment of play, etc). In addition, with Steam these authors have a place where they can sell their works and pocket the majority of the revenues earned.
Gamecloud - Finally, can you give us your final word on PC game Internet distribution and where you see it going in the near future?
Doug Lombardi - We've had the opportunity to brief a number of legendary and aspiring developers about what's available to them with Steam, and the reaction has been positive. Whether they proceed with Steam or another electronic distribution method, I think the near term prediction is that many others will be giving it a shot and expanding on this great experiment. The more interesting questions are what will we all learn as this experiment broadens and then how will that knowledge relate to the more distant future.