Daniel Raymond analyzes the potential business and player benefits of Cloud Imperium Games selling Squadron 42 on Steam, highlighting Steam’s market dominance, revenue structure, and the strategic use of Steam keys to balance sales between Steam and CIG’s own platform. He concludes that while Steam offers significant exposure and ease of access, challenges like review bombing, pricing restrictions, and platform compatibility exist, making the decision a nuanced one for both CIG and players.
In this video, Daniel Raymond from Ray’s Guide discusses the recent discovery of achievements on Steam that suggest Cloud Imperium Games (CIG) will be selling Squadron 42 on Steam, likely coinciding with an upcoming event in Manchester. Rather than speculating on the game’s plot from vague achievement titles, he focuses on analyzing whether selling Squadron 42 on Steam is a good business move for CIG and a good purchasing option for players. This involves examining Steam’s business model and market dominance, as Steam controls roughly 75 to 85% of PC game sales, which influences how game publishers interact with the platform.
Daniel explains that Steam does not engage in exclusive sales contracts with publishers, allowing games available on Steam to be sold elsewhere as well. Steam’s revenue cut is typically 30% for the first $10 million in sales, decreasing for higher sales brackets. Importantly, CIG can generate Steam keys for Squadron 42 copies sold outside Steam, such as through their own RSI store, avoiding Steam’s revenue cut on those sales. This dual approach allows CIG to tap into Steam’s vast user base while retaining control over sales and revenue through their own platform.
Regarding Star Citizen’s persistent universe, Daniel suspects it will not be fully available on Steam due to its complex revenue model involving ships, upgrades, and bundles, which may not translate well to Steam’s catalog system. However, the base game account might be purchasable on Steam, with additional content remaining exclusive to RSI. He also notes Steam’s strict rules prohibiting references to other purchase locations on the Steam sales page and requiring price parity between Steam and non-Steam sales, which could influence how CIG manages pricing and marketing.
Daniel weighs the pros and cons of selling Squadron 42 on Steam. On the positive side, Steam’s massive market share means exposure to a large audience who only buy games through Steam and easier targeting of players of similar games. On the downside, the game may face review bombing from people unfamiliar with it, driven by unrelated grievances or fandom loyalty to competing titles. He also discusses the possibility of Squadron 42 running on Valve’s Steam Machine, noting potential challenges with operating system compatibility, storage space, and memory, but concludes that running the game on the Steam Machine is feasible with some adjustments.
Finally, Daniel shares his personal preference for launching the game via the RSI launcher rather than Steam’s interface, though he acknowledges that Steam visibility could boost the game’s perceived popularity. He wraps up by mentioning channel events and giveaways related to Squadron 42 and Star Citizen, encouraging viewers to participate and subscribe. Overall, the video provides a nuanced look at the implications of CIG selling Squadron 42 on Steam from both business and player perspectives.