Steam

2025-09-20T16:03:26Z

PATjaah: /* Business model */ Provided some additional info on Steam's business model.

{{ProductCargo
|Company=Microsoft, Sony, Nintendo, Epic Games
|ReleaseYear=2003
|InProduction=Yes
|ArticleType=Service
|Category=Digital storefront, Video games
|Logo=Steam.png
|Website=https://store.steampowered.com
|Description=Online storefront for PC games. Users who "purchase" games own a revocable license, which in return mislead buyers. Data breaches and lawsuits follow.
}}

'''Steam''' is a digital storefront and service for video-game distribution, operated by [[Valve|Valve Corporation]]. Launched in 2003, it has grown to become the largest digital-distribution platform for PC gaming, with over 130 million monthly active users as of 2024. The platform offers services for [[digital rights management]] (DRM), server hosting, video streaming, and social networking.<ref>[https://www.valvesoftware.com/en/about "At Valve we make games, Steam, and hardware."] ''Valve Corporation''. 2024. Retrieved January 17, 2025.</ref>

==Consumer impact summary==
====Privacy====
*Collects extensive personal data, including email, location, payment details, and device information<ref name="privacy-policy">[https://store.steampowered.com/privacy_agreement/ "Privacy Policy Agreement."] ''Steam''. February 14, 2024. Retrieved January 17, 2025.</ref>
*Records and stores all user communications through platform features<ref name="privacy-policy" />
*Keeps specific user data indefinitely for "gameplay consistency" even after account deletion<ref name="privacy-policy" />
*Tracks gaming behavior, including preferences, progress, playtime, and device usage<ref name="privacy-policy" />
*Shares user data with game developers and third-party service providers<ref name="privacy-policy" />
*Makes user profile data publicly available through Steamworks API<ref name="privacy-policy" />
*Uses cookies and similar technologies for tracking across websites<ref name="privacy-policy" />
*Retains transaction data for up to 10 years after account closure<ref name="privacy-policy" />

====Freedom====
*Users do not own purchased games; they only receive limited licenses<ref name="subscriber-agreement">[https://store.steampowered.com/subscriber_agreement "Steam Subscriber Agreement."] ''Steam''. September 26, 2024. Retrieved January 17, 2025.</ref>
*Can terminate access to paid content at Valve's discretion<ref name="subscriber-agreement" />
*No right to transfer or resell purchased games<ref name="subscriber-agreement" />
*Imposes regional restrictions on game activation and playing via IP address geolocation<ref name="subscriber-agreement" />
*Can unilaterally modify terms with 30-day notice<ref name="subscriber-agreement" />
*Mandatory client updates (sometimes over 100MB) required to launch Steam & access library<ref name="subscriber-agreement" />
*Users must accept all changes to maintain access to purchased content<ref name="subscriber-agreement" />
*No option to opt out of core data collection while using the service<ref name="privacy-policy" />
====Transparency====
*Provides a clear refund policy for games (any game played for less than 2 hours within 14 days)<ref name="subscriber-agreement" />
*It will mainly reference instances where the product prevents inspection or is intentionally confusing.
*Maintains detailed system requirements information for all games (developer-submitted)<ref name="subscriber-agreement" />
*Offers a comprehensive privacy policy in an accessible language<ref name="privacy-policy" />
*Unclear processes for account termination and data removal<ref name="privacy-policy" />
*Limited transparency about content moderation decisions<ref name="subscriber-agreement" />
*Vague about specific data retention timeframes<ref name="privacy-policy" />
*No clear disclosure of recommendation algorithm factors<ref name="privacy-policy" />
====Business model====
Steam makes money from every purchase of games on the platform, with 30% of the sale going to them.<ref>{{Cite web|url=https://www.rockpapershotgun.com/that-lawsuit-against-steams-30-cut-of-game-sales-is-now-a-class-action-meaning-many-other-developers-could-benefit|title=That lawsuit against Steam’s 30% cut of game sales is now a class action, meaning many other developers could benefit|first=Edwin|last=Evans-Thirlwell|date=2024-11-28|work=Rock Paper Shotgun|access-date=2025-08-06|archive-url=https://web.archive.org/web/20250725042630/https://www.rockpapershotgun.com/that-lawsuit-against-steams-30-cut-of-game-sales-is-now-a-class-action-meaning-many-other-developers-could-benefit|archive-date=2025-07-25|url-status=live}}</ref>

Steam also offers a community market where players can buy and sell different types of items, like in-game skins or trading cards, for a fee of 5% (with a minimum fee of $0.01). Any profits made from the market are added to the user's Steam Wallet and can't be withdrawn. This serves as another essential source of revenue for Steam.<ref>{{Cite web |title=Steam Community Market |url=https://steamcommunity.com/market/ |url-status=live |access-date=2025-09-20 |website=Steam}}</ref><ref>{{Cite web |title=Community Market FAQ |url=https://help.steampowered.com/en/faqs/view/61F0-72B7-9A18-C70B |url-status=live |access-date=2025-09-20 |website=Steam}}</ref>

====Market control====
As of 2021, Steam has over 132 million players utilizing the service.<ref>{{Cite web|url=https://store.steampowered.com/news/group/4145017/view/3133946090937137590|title=Steam - 2021 Year in Review|work=Steam|date=2022-03-08|access-date=2025-08-06|archive-url=https://web.archive.org/web/20220816161655/https://store.steampowered.com/news/group/4145017/view/3133946090937137590|archive-date=2022-08-16|url-status=live}}</ref>

==Incidents:==
===Customer database hack (''Oct. 2011'')===
In October 2011, Valve temporarily closed the Steam Community forums following security-breach concerns. The company later confirmed that hackers had compromised one of its customer databases. The compromised database contained user information, including encrypted credit-card numbers, billing addresses, purchase histories, email addresses, and encrypted passwords for Steam accounts.<ref>Johnson, Casey (November 10, 2011). [https://arstechnica.com/gaming/2011/11/valve-confirms-steam-hack-credit-cards-personal-info-may-be-stolen/ "Valve confirms Steam hack: credit cards, personal info may be stolen"]. ''Ars Technica''. Retrieved January 17, 2025.</ref>

At the time of disclosure, Valve stated they had no evidence that the encrypted credit-card numbers or personally identifying information had been taken, nor was there evidence that the encryption on the credit-card numbers or passwords had been cracked. Nevertheless, they advised users to monitor their credit-card activity and statements as a precautionary measure.

===Antitrust ruling: Geo-blocking (''Jan. 2021'')===
On January 20, 2021, the European Commission fined Valve, owner of Steam, €1.6 million for breaching EU antitrust rules by engaging in geo-blocking practices through Steam within the European Economic Area (EEA). Five PC video game publishers have also been fined for engaging with Valve through Steam in geo-blocking practices by "requesting Valve to set up geographical restrictions and to provide geo-blocked Steam activation keys"(EU Commission, 2021). The fines for the publishers were reduced due to the cooperation of the five publishers with the Commission. Valve did not cooperate with the Commission.<ref>Antitrust: Commission fines Valve and five publishers of PC video games € 7.8 million for “geo-blocking” practices. (2021, Jan, 20). ec.europa.eu. Retrieved May 26, 2025, from https://ec.europa.eu/commission/presscorner/detail/en/ip_21_170</ref>

===Modification to terms-of-service (''Sep. 2024'')===

{{Main|Valve removes arbitration requirement from Steam Subscriber Agreement}}
In September 2024, Steam implemented significant changes to its subscriber agreement that altered user rights and game-ownership terms. Additionally, it removed [[Forced Arbitration|forced arbitration]] from the Steam Subscriber Agreement.<ref>Carpenter, Nicole (September 27, 2024). [https://www.polygon.com/explained/457557/valve-arbitration-steam-subscriber-agreements "Valve removes arbitration from its Steam agreements — here's what that means for you"]. ''Polygon''. Retrieved January 17, 2025.</ref><ref>Rossmann, Louis (September 27, 2024). [https://www.youtube.com/watch?v=1f81qXxggo8 "Steam altered the terms of the sale; you'll be happy they altered it further!"] ''YouTube''. Retrieved January 17, 2025.</ref> Key changes included:
*Enhanced ability to terminate accounts for violations
*Additional data collection and sharing provisions
*Modified dispute resolution procedures

===Valve allows ISPs and payment processors to censor content on Steam (''Jul. 2025'')===
{{Main|Valve allows ISPs and payment processors to censor content on Steam}}
In an update for Steam's Rules and Guidelines for developers,<ref>{{Cite web |title=Steamworks Documentation - Onboarding |url=https://partner.steamgames.com/doc/gettingstarted/onboarding |url-status=live |archive-url=https://web.archive.org/web/20250719092925/https://partner.steamgames.com/doc/gettingstarted/onboarding |archive-date=Jul 19, 2025 |access-date=Jul 19, 2025 |website=Steamworks Documentation}}</ref> a new rule was added within the section detailing what content can not be included on Steam:<blockquote>15. Content that may violate the rules and standards set forth by Steam’s payment processors, related card networks, banks, or internet network providers. In particular, certain kinds of adult-only content are used.</blockquote>This addition was made with pressure from payment processors such as [[Visa]], [[Mastercard]], and [[PayPal]]. Most, if not all, content taken down from the platform was adult in nature <ref>{{Cite news |last=Bonk |first=Lawrence |date=Jul 16, 2025 |title=Steam now bans games that violate the 'rules and standards' of payment processors and banks |url=https://www.engadget.com/gaming/steam-now-bans-games-that-violate-the-rules-and-standards-of-payment-processors-and-banks-164222173.html |access-date=Jul 19, 2025 |work=Engadget}}</ref>however, allowing both payment processors and ISPs to judge whether or not content on the platform can be taken down puts consumer choice at risk. Reportedly, Japanese developers creating "adult-oriented" games were also refused payment via their banks just after this rule change.<ref>{{Cite news |date=Jan 30, 2025 |title=Adult game devs in Japan can’t receive revenue from Steam as Japanese banks reportedly make the “comprehensive decision” to block transfers |url=https://peoplic.com/adult-game-devs-in-japan-cant-receive-revenue-from-steam-as-japanese-banks-reportedly-make-the-comprehensive-decision-to-block-transfers/ |access-date=Jul 19, 2025 |work=peoplic}}</ref>

In addition, game developers and consumers have noticed that some content was removed or delisted despite not being 18+ while having LGBT tags or themes. <ref>{{Cite web |last=Gossling |first=Cedric |date=2025-08-01 |title=Steam and Itch.io Delist LGBTQ+ and NSFW Content Following Payment Pressure |url=https://www.gameshub.com/news/news/steam-itchio-delist-lgbtq-nsfw-games-2790936/ |access-date=2025-08-12 |website=Gameshub}}</ref>

==See also==
*[[itch.io]]

==References==
{{reflist}}

[[Category:Services]]
[[Category:Valve Corporation]]

Consumer Rights Wiki - User contributions [en]

Steam