this post was submitted on 16 Jun 2024
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Yeah, to be honest that portion of the Wolfire case is pretty weak in my opinion. The Wolfire case isn't only about steam keys, though, it also alleges that the PMFN clause applies to all game listings outside of Steam.
I watch the timestamp provided. The video appears to me to suggest that it is a well-founded legal complaint given you can establish the MFN is the cause of the lack of differentiated pricing. The commentator seems to dismiss the idea that such an effect is evident in the information provided, and seems wishy-washy on a lot of his claims about economic principles. I'll take his word on the legal front, but for the economic side I will turn to the plethora of academic and legal publications on the effects of MFN clauses (which support the anti-competitive effects alleged by the filing).
Also it looks like the Colvin wasn't dismissed, it was consolidated into the Wolfire class-action.
Yep, and the MFN is also a point in the monopoly proceedings against Amazon.
This is interesting, I was unaware. I'll have to look into it.
Not to be nitpicky (because this might be solid counter-evidence), but do we know that in a universe without the Steam MFN policy Ubisoft wouldn't have listed the games concurrently on Steam for 18% higher?
Strikes me as a little beside the point. A randomly rolled free game once a week is almost nothing compared to the sea of purchases in the game industry. If I want to buy game XYZ, the free weekly does me no good—at most, it gets me to install Epic (which is what they want). But it isn't going to change the fact that Steam gives more bang for the buck, all else equal.
The fact remains, that Steam is preventing games from being listed for less on Epic. So if price isn't the most important factor, why does Steam feel the need to impose such a policy?
We can go back and look at the historical prices for The Division 2 and see that Ubisoft didn't have a lower baseline price on their own store compared to the epic store. So either Epic has an MFN policy as well, or Ubisoft would most likely want to keep their prices consistent across platforms and stores.
That's the thing: you're being given a random game every week and that's still not enough to get people to stick around. The games they're giving away are often pretty good too, and yet it's not enough to convince people that the Epic Games Store is worth using. And looking at the store now, it seems they're just giving back 5% of the money you spend, meaning if you opt into their ecosystem, all their games actually are cheaper. At some point you need to admit that people won't abandon steam just because prices are lower somewhere else. Because the alternative would mean that piracy would be everyone's preferred method of getting games.
We also don't really know that they do. The source saying that the MFN policy exists at all is the CEO of Epic Games saying so on twitter. And I'm pretty sure the lawsuit says that it's "selectively enforced", so there aren't any actual examples of Valve vetoing a game's price based on the price in another store.
Thanks for digging that up, interesting to note. Epic might have an MFN, or maybe Ubisoft's internal publishing overhead is roughly 12%.
I don't know what you envision when you say "stick around". Do people uninstall Steam when they install Epic? No, they don't. You just have both installed. The free game gimmic is for you to download the platform; that's the first hurdle, but it does little to change your preference between platforms when it comes time to make a purchase.
Interesting point on the 5%, I was unaware of that.
What evidence would be needed to convince you?
Clearly, there is a business case for listing a game for less on Epic (or a publisher's own site!). We can trust the MFN policy most likely exists. What other explanation for the observed behavior can be put forth?
"Selectively enforced" is the wording used by Valve's own employee. That could mean anything from "only big, noteable games" to "only enforced when we noticed it" to "actually enforced consistently". Regardless, it can have a chilling effect that causes everyone to step in line.
I would expect people to start buying games from the epic games store. They'd be using it regularly and have a sense of ownership over the games they have in their libraries.
Honestly, I'm mostly just being pedantic. I'm perfectly willing to believe this kind of clause exists, but I want to acknowledge that at least for now there's no actual evidence of it.
For games being the same price on different store fronts? Whatever the justification for selling digital games at the same price as physical games was back when digital purchases were becoming mainstream, or for the same reason that Nintendo games will rarely go on sale: because there are still people willing to pay.
Is it? Because I pulled the term from the complaint filed Apr 27, 2021 under the Price Veto Provision section. Where did you see a valve employee saying it?
I wouldn't call a multi-year class action asserting that a clause exists "no evidence".
(I mostly continue on this point because I will continue to go around saying Valve uses a PMFN clause, and it's not unfounded for me to do so)
Alright, if you're not convinced that there ought to naturally be differentiated pricing, and that the uniform pricing we see is artificial, I don't know where else to go.
Ah, I was thinking of the "TomG" quotes here. I see what you're referencing now, though that doesn't really make the language as less ambiguous.
Anyway, I enjoyed the discussion but I'm going to call it here. Cheers.