I’ve been hearing about how computer gaming is either dead or has been dying since 2001. And with arguably the smallest audience in the already niche video game industry, I admit it’s kind of shocking that computer games are still around. Even more shocking is that computer gaming had its best year since “Quake” and “Doom” created the first-person shooter.
Without even considering the release of “Starcraft II,” a game millions of people and the entire country of South Korea have been waiting for, 2010 saw the release of high profile titles like “Call of Duty: Black Ops,” “Mass Effect 2” and “Fallout: New Vegas,” and these were all games that managed to sell just as well as their console counterparts. Innovative independent games have also found a home on computers. Currently, the heroic computer game underdog is “Amnesia: The Dark Descent,” a survival-horror game that has sold more than 200,000 units and has received critical acclaim. Not bad for a game that so far is available only on Steam. The game owes a life debt to the platform.
For those whose thoughts on digital distribution are limited to the fascist policies of Apple, Steam is a video game downloading service created by Valve, the studio behind the groundbreaking “Half-Life” series and its amazing spin-off “Portal.” Steam began in 2002 as a forward-thinking idea that seemed borderline useless because Valve lacked the technology to make the platform actually work. Because of that, it quickly became a joke in the computer community.
However, Valve persevered until technology advanced, and the computer market took notice. Today, Steam has a 70 percent share of the digital distribution market and more than 30 million active members. It made about $1 billion in 2010. That’s right: $1 billion. The computer gaming market as a whole is worth an estimated $11 billion.
Forbes magazine called Valve’s co-founder Gabe Newell the next “billionaire of video games.”
When assaulted by these unfathomable numbers, the gut instinct is to cry foul and assume Valve has become “the man,” stealing greedily from the humble independents and stifling competition. But in this case, instinct is wrong. Because of Steam, independent studios have a platform to reach their audiences without having to pay out the ass to retailers and distributors to get their games on shelves.
Steam also offers publishers an estimated 70 percent margin — compared to the estimated 30 percent margin retailers offer — and Valve’s commitment to open-sourcing its technology gives code-savvy nerds the chance to make their own games.
In this decade, when digital distribution is one of the fastest growing markets in the world, it’s remarkable to think about how forward-thinking Valve was in 2002 when it predicted digital distribution would be the Internet’s future. Companies like Valve are what keep the American Dream alive in today’s cynical world. Valve has proven that developers with good ideas and determination can be successful. As long as smart, innovative people like those at Valve are around, computer gaming will never die.
