We're an indie dev on Steam. Here is a summary of Steam Dev Days and why after attending it, we're going all in on Steam Machines.
Devs of
No Time To Explain and
SpeedRunners here
This week we attended Steam Dev Days, and last couple of nights were playing around with the Steam Machine that was given out at the event. After digesting everything from the event, and playing our own games (that were super easy to port) on the SteamOS, it’s clear that we’re going all-in on Steam Machines.
This post is a summary of Steam Dev Days and explanation of why we’re going all-in on Steam Machines.
Valve's approach to living room gaming will shift the industry in the same way Steam did with game distribution. Understanding why lies in all the little pieces surrounding the company, and their individual initiatives.
For example — Steam is opening up more and more towards user generated content, and after seeing DOTA2/TF2 numbers, it's clear users love both spending and making money while playing their favorite games.
Users love spending money for something that creates value -- and not for artificial walls like in "social/facebook" games. Valve really cracked the formula of keeping players happy AND willing to spend money to become more happy.
$10m from TF2 items chart
Over $10m was made by 600+ people creating content for TF2. This is because they have all the tools to let their community create content, and make money off it — all while letting that same community dictate the value of the content. Think of it as a self-adjusting system where price is determined by demand. What happens is real value creation in the perception of users.
We're super excited to allow users to create and sell in-game content in our own games. Soon.
Robin Walker shared examples of how they involved the community in creating TF2 -- while iterating on the go. He shared how in the robot arm example of The Engineer update, they just put a bunch of stuff into a trailer, and looked at what users speculated. Users made up most of the stories, and loved the idea of the Engineer having a robot arm, because he never took off his glove. So Valve just put that into the game.
slide from SteamDevDays on communication
On another example, TF2 got a pack of new achievements, and didn’t reveal descriptions for them. Speculation led to Valve having a new pack of updates (they just grabbed the best ideas from speculation threads). Simple and brilliant.
Valve's basic philosophy is to keep users happy. Never during Steam Dev Days have I heard anything about profit. Steam's business team thinks first about the users, about what they might like/use, and then about how to monetize it -- but only in fun ways that deliver actual value. This is very long-term thinking, not seeking short-term bumps in revenue to keep shareholders happy.
DOTA Battle Boosters make users happy
"Happy users will keep on returning and spending money" -- quote from a breakout session about user generated content.
This happy user methodology combined with the iterative approach are key factors in why Steam Machines will dominate living rooms. Multiple times Valve employees said they’re just extending Steam to the living room, implying no real competition with consoles. In some way it’s true that not all console players will want a Steam Machine. But I believe developers won’t want to go anywhere else.
Steam user growth chart
As of now, Steam has 75 million users, and this is growing.
Steam revenue growth in Russia chart
They’re the first video game company to successfully capitalize on Russia — by smart pricing policies, keeping users happy in free to play games (ok, I know everyone understands Russian cursing in DOTA2 by now, but still), and in general caring about the customers.
Steam currency expansion plans
What’s most interesting though are the developer tools available. No other robust platform allows you to push out live updates in a matter of seconds. The community features are miles ahead of competition. And the multiplayer/matchmaking support is fantastic. I’m not even mentioning all the constantly evolving features like user reviews, guides, Early Access, etc.
User reviews stats
So in a way, Steam Developers are also users that Valve wants to keep happy, and by doing so in an iterative approach, they really succeed. The same iterative approach is done for the controller — the touchscreen made no sense and is dropped, they’ll get sexy looking buttons, and the hardware team was very eager to hear your opinion on everything.
These are just some of the reasons why we are backing up the Steam Machine and everything around it. Super excited to show off some games running on it during GDC.
PS also the Steam Machine will likely be the only living-room based hardware capable of running VR. The VR part of Steam Dev Days was — to say the least — mind-blowing.