GamersGate CEO: Valve Is On The Verge Of Decline

It's no secret that Steam dominates the digital download market, but that doesn't seem to scare Theo Bergquist, CEO of digital download service GamersGate who told the media that he believes that Steam has reached its peak and can only grow down from now on.

Talking to Industry Gamers, Bergquist was bullish about the two companies' relative future prospects, buoyed by strong figures form the Christmas period which saw GamersGate's sales rise by 72 per cent.

"To be honest, we're not afraid of Steam," he told Industry Gamers after boasting that GamersGate's sales rose by 72% through Christmas. "We think they are peaking now while the market is still very hardcore. In fact, we know from the feedback we receive from customers, one of the reasons we have such great growth is because many gamers out there don't like Steam and see Gamersgate as a better alternative."

"Once digital sales are superior to physical sales, we believe Steam will have a harder time remaining #1," he added. "We don't have any market breakdown of the overall numbers. Some people say Steam has 50 per cent of the market, some say 80 per cent, but we don't know."

"What we do know is that Steam's marketshare will shrink in the future and that GamersGate is well positioned as one of the digital distrubution platforms that has strong momentum to gain marketshare."

Bergquist then expressed his belief that 2011 might be the year when digital downloads overtake physical media sales.

"You should never underestimate the importance of the physical store," he explained. "At the same time, the market is moving faster now. Some of our partners tell us that in only a year their revenues from digital downloads have moved from 10-20 per cent of their revenue to over 50-80 per cent."

"I think 2011 will be a tipping point for digital downloads in which they should really take off. Digital distribution is no longer a business development project for publishers; it's an integral part of the sales organization. They look at the greater revenue split they can get from digital as compared to physical, and it's easy math to decide that they should focus on digital."

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Be Smart

I'll never use anything other than Steam, the make games, they sell games, and the will most likely always be around. I've never heard of Gamersgate before. I checked out their site and while I do see good deals, its no better than Steam. I'd be afraid to buy a game from Gamersgate then it go under, poof! money and game gone. They would have to do some D**N good deals for me to buy something, but Steam already does that.

Be Smart

I'll never use anything other than Steam, the make games, they sell games, and the will most likely always be around. I've never heard of Gamersgate before. I checked out their site and while I do see good deals, its no better than Steam. I'd be afraid to buy a game from Gamersgate then it go under, poof! money and game gone. They would have to do some D**N good deals for me to buy something, but Steam already does that.

Be Smart

I'll never use anything other than Steam, the make games, they sell games, and the will most likely always be around. I've never heard of Gamersgate before. I checked out their site and while I do see good deals, its no better than Steam. I'd be afraid to buy a game from Gamersgate then it go under, poof! money and game gone. They would have to do some D**N good deals for me to buy something, but Steam already does that.

Be Smart

I'll never use anything other than Steam, the make games, they sell games, and the will most likely always be around. I've never heard of Gamersgate before. I checked out their site and while I do see good deals, its no better than Steam. I'd be afraid to buy a game from Gamersgate then it go under, poof! money and game gone. They would have to do some D**N good deals for me to buy something, but Steam already does that.

yes and no

Steam is OK but it could be great. If you live in Australia or other parts of the world where you get royally screwed by the regional pricing scheme ie a $40 USD game selling for $90 AUD you can understand that other companies will start swooping in and taking dissatisfied customers away from Valve.

Of course in Valves defence they have been made to cow tow to the retail dinosaurs like EB Games who just cannot compete because their business model is 1970's style outdated. If only Valve had the guts to tell them to shove it and to get with the times.

/sigh

While i doubt gamersgate will ever be a match for steam, i have to point out that every single poster here failed to realize what the guy said.

Someone mentioned games that will be on steam, someone asked for evidence that steam is losing market or sales declining...

Those are unrelated to what the CEO said. He simply said steam has reached its peak, as in, not many new people are joining and with that he said it has nowhere to go but down, as in, now that barely anyone is joining all that can happen is people quit once in a while.

This is quite true, the rest is just hopeful bullshit (speculation) on his part and can be ignored.

Steam or Game devs = aholes

they charge $90+ AUD for games when Americans only pay 49.95 yet our dollar is equal to the US Dollar weather its steam of the game company's them selves doing it they are both bastards for doing it to us its always been said giant American corps don't give a fuck about Australians

Ha, Portal 2, Dota 2 and

Ha, Portal 2, Dota 2 and Episode 3 in the pipeline. Chances of Valves going on a decline is minimal. Portal 2 on ps3 with steam works is only the first game, im sure many more are going to follow. GamersGate are getting a little to big for theyre shoes with that statement.

so much fail here....

I think Mr. Bergquist is quite mistaken, and not quite in touch with reality. There is no formal indicator that steam is losing the market, as long as steam offers more and better sales for pc games, I dont see their sales declining. If anything steam is building on momentum, they are gaining more and more customers and building their markets. If you read any sort of gaming news around the web (reddit, gizmodo, kotaku, joystiq, digg, pcgamer, etc etc) you'll find that the community's impression of steam has been and still is very positive. More people use steam today than they ever have, as long as there is no catestrophic decision by steam to do something drastic, I do not see their market failing or declining. Steam is building upon a very good platform here, they keep things simple and make it so the user experience doesnt get affected in any ways. Gamers are happy because they get good quality games at a value and the pc game companies are making a larger profit of from each of their sale as oppose to selling through retail. The most important aspect here for any platform like steam is to build up a good relationship with their publishers and to give their customers the best selections of games they can offer.

Or...

Steam will take over the majority of game distribution on pc... I always love when a ceo of a competing company says the opposition is going to fail. Id worry bout your own company Theo since I've never even fucking heard of it before :P

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