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Humble Bundle V Steam

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Humble Bundle V Steam SAE Institute Belgrade Comparative Discussion Paper Humble Bundle VS Steam: The Cultural and Economic Aspects CMN4200-0916Y1 Simona Milos Belgrade, 2016 !1 Table of Contents 1. Introduction 2. The Video Game Distributors 2.2. Humble Bundle 2.3. Steam 3. Conclusion !2 1. Introduction This essay will perform a comparison of two major digital game distributors - Humble Bundle and Steam. We will examine their cultural and economical impact through a variety of social topics that are often connected with the gaming industry - ecological and economical issues that arise with the switch from physical to digital distribution, charitable causes, education and user experience. Thinking of video games, most of us associate them with ridiculous pastimes such as flinging angry birds at pigs or seemingly endlessly tapping away on cell phones for no apparent good reason. However, recently the public opinion has started to acknowledge the potential within games for engaging social issues. A variety of educational games have proven efficient to communicate scientific facts and social questions of interest to the contemporary world. Such is the example of Foldit gamers working out the protein structure that helps viruses like HIV reproduce. (Michael J. Coren, 2016) Even large corporations increasingly adopt this ‘games with purpose’ model. (Stevens, 2016) The ecological prospect of the gaming industry seemed to ameliorate with the emergence of digital gaming as there were no discs, no waste and no driving involved. However, as games became heavier and heavier in Gb, the difference in ecological impact fades away due to large power supply needs of massive gaming and distributing servers. One game contributes up to 30 kilograms of CO2 in the atmosphere. (Mayers et al., 2014) According to PwC's yearly Global Entertainment and Media Outlook forecast 2016-2020, the total game market is predicted to grow to USD20.28bn by the year 2020. "There are a number of reasons for this relatively low growth. The largest component is physical console games sell-through revenue, which was already in decline in 2015, and that decline is accelerating as viable subscription and digital offerings become more compelling... revenues declined from US$7.60bn in 2015 to US$6.23bn in 2020". Digital game sales, however, are growing in a rapid pace - from 2bn to 3.6bn dollars in console digital games and from 3.53bn to 4.78bn in PC games. They predict that physical game sale will not disappear, as the core group of PC gamers continues to prefer physical to digital editions. (GamesIndustry.biz, 2016) !3 2. The Video Game Distributors 2.1. Humble Bundle Humble Bundle is a digital storefront that combines video game sales with fundraising for charitable causes. Though it is incomparably smaller than Steam, it does manage to collect hefty sums for charities such as the Red Cross, Child's Play and Electronic Frontier Foundation. The games are sold individually or in bundles at a price determined by the purchaser (but there are often minimal limits to how much one can offer). Initially, Humble Bundle featured mostly indie games with multi- platform support, but due to their incredible success have expanded and included games from renowned developers, AAA games, games for Android and bundles of various content such as music, books and comics. The idea for such a venture came when, viewing sales of bundle packages on the Steam platform, Jeff Rosen ('Wolfire Games') noted that such bundle sales would have a wide viral reach across the online community, so he organised to form a bundle of indie games containing: 'World of Goo', 'Gish', 'Lugaru', 'Aquaria', and 'Penumbra Overtur'. "Everyone in the promotion is 100 percent independent, and we are all buddies, so it only took a few emails to organise the whole thing", Rosen stated, (Thompson, 2016) implying a strong sense of community and support between indie game developers, adding that "there are a lot of indie forums, and mailing lists, so most indies have really easy access to each other." (Thompson, 2016) Humble Bundle was praised by most gaming platforms such as 'Ars Technica' and 'PCGames' (Francis, 2016) for their success at alleviating socially relevant issues through video game sales. Humble Bundle has contributed to their causes with USD50m by 2014, surpassing expectations from even the largest charities they raised funds for, such as the Red Cross and Doctors Without Borders. "Charities often are very surprised by the amount of money sent their way by our community,” John Graham, the co-founder and COO of Humble Bundle said. “Even the larger charities like the Red Cross are amazed once the payment arrives. It has often been the case that we exceed charity expectations and they've had the good problem of figuring out how to scale up the work they do." (MCV UK, 2016) "We owe our thanks to the generosity of the Humble Bundle community -- to the content creators who entrust us with their works of art and to the consumers -- for making this possible." (GamesIndustry.biz, 2016) The Humble Store was opened in 2013 where single games, as well as various other content like music and ebooks can be purchased on daily sales instead of bundles. !4 10% of the revenue goes to charities. They have thus far contributed USD5.4m to charity. (Humble Bundle, 2016) The charities Humble Bundle supports a wide selection of 35 000 different charities, out of which five are featured: 'Charity: Water', that has a mission to make water available where there is no access to drinking water, 'The Red Cross', 'The Wikimedia Foundation', that fights for equal and free access to education and data via the Internet for all, 'Child's Play', who try to bring video games into children's hospitals in an effort to lift children's spirits and to shed the demonisation of video games, and 'Games Aid'. Humble Bundle's inspirational business model serves as a reminder to all that it is possible to combine 'dulce et utile' and to make a difference in our day and age. 2.2. Steam Steam is the world's largest digital gaming platform, developed by Valve in 2003 Windows operating systems, later also adding support for OS X and Linux. (PCMAG, 2016) Steam paved the way of the gaming community ever since by supporting indie games developers, adding in-game social features and digital rights management (DRM). Today it is celebrated by ten million gamers at a time, and a mind-blowing record 13,242,687 users at its peak this year, who play online video games such as (most popularly) DOTA 2, Counter Strike: Global Offensive and Grand Theft Auto V. (Store.steampowered.com, 2016) These numbers continue to grow steadily from month to month within a world-wide fan base of over 125 million subscribers (2014). (VG247.com, 2016) The idea to develop this gaming platform came to Valve when it was brought to their attention that online games, of which Counter-Strike was most popular at the time, take a long time to patch. This led to displeased gamers being disconnected from their favourite form of entertainment for hours, or in some cases even days. Other various factors were taken into account. Such was the game development crisis that began in the nineties as the industry was drying up because of high retailer fees and high shelf prices, and consequently the expansion of piracy. Such was the case in developing countries in Eastern and Southern Europe where third parties (Internet cafés) were profiting illegally by using pirated versions of Valve's games and connecting them in internal networks to create a fight-club-like underground gaming scene. Valve created Steam: "...a platform that would update games automatically and implement stronger anti-piracy and anti-cheat measures". Once game purchase has been completed the users can get game patches and updates automatically, meaning that game servers do not fall for extended periods of time, also, users are provided with a rollback mechanism in case that the patch or update needs to be pulled back (in contrast to before Steam, when the user would have to re-install the entire game) and !5 even install and save games on a cloud server in order to play on multiple computers once they've downloaded or purchased them. With Steam, gamers can conveniently communicate via extensive forums, which contain many useful gaming tips and information, friend lists and groups, chat, and in-game team-speak (meaning they do not have to shift between the game and a communication media such as Skype). Steam has exquisitely good servers that allow very fast downloads and an extensive choice of various games, from AAA to indie to classics. (Store.steampowered.com, 2016) In some cases the gamers get to beta test new game versions. (‘Steam (software)’, 2016) All of the stated leads to a fairly pleased worldwide gaming community. Though Valve doesn't disclose any sales figures, and no game developers may do so due to non-disclosure agreements, there are approximate estimations to Steam's share in digital game distribution and gross share in gaming distribution. Estimations from 2009 state: "Our estimation is that Steam - as the current market leader - enjoys approximately 70 percent of the overall digital distribution market with Impulse at 10 percent and all others combined at 20 percent in terms of actual dollars generated per month". (Graft, 2016) 'Stream spy' analytics platform estimates USD3.5bn spent on Steam games in 2015, (Wawro, 2016) the best-selling titles from this year being 'Rockstar's Grand Theft Auto V' at circa 3.6 million activated copies, followed by 'Fallout 4' at circa 2.5 million copies and 'Evolved' at 2.1 million copies activated.
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