Valve Counters EA's "Devaluing IPs" Talk

Written by: (Twitter @winterinformal - ) | July 17, 2012 11:53 am

34 Comments

Remember when an EA executive said Steam devalued IPs by offering games at incredible discounts? Valve‘s response: “Not so much.”

Valve’s director of business management, Jason Holtman, countered EA’s argument with actual, you know, data, to back up his claim, saying that:

“If that’s what we thought was happening, or that’s what we saw happening, we wouldn’t do it. Actually, all the data is contrary to that. A promotion is not a policy; a promotion is just a feature to give people more value.

We put Left 4 Dead 2 and Portal 2 on sale. If we thought that was killing our franchise, or hurting the value of games, or hurting the revenue we could generate as a company, we wouldn’t do it. We’ve even gone so far as to give away Portal for free a couple of times. Whole days where it’s not free for a day, it’s just free.

We looked at this amazing data afterwards. The day after the sales were exactly the same, if not more.”

Of course, Origin’s doing its own summer sale, though not quite on the same scale as Steam’s. And any sale by Origin will henceforth be known as “devaluing IPs.”

So what do you think? With this latest smackdown from Valve, is there the tiniest shred of merit to EA’s position? Let us know in the comments below!

Valve Counters EA's "Devaluing IPs" Talk

  • William Miller

    This is basically EA doing what EA does best. Flinging mud at competitors that are leaps and bounds ahead of them, for the sake of getting some publicity. It’s not the first time we’ve seen it, it definitely won’t be the last.

  • http://twitter.com/Diogo_Pereira10 Diogo Pereira

    i dont see the problem, origin have a bigger problem with the country prices, i can buy almost every game in Origin through origin india with a proxy and only pay 20euros instead of 50euros or more

  • Tyler Woidan

    Steam’s Halloween sale got me to buy SO MANY Zombie games at a reduced price. I’ve had them for 9 months now, and I’ve played one of those games for about 2 hours. I pretty much stick to MMO’s, but a deal like this will make me think “hey, I’ll take a break and try these” when I otherwise would’ve never given 95% of these games the time of day.

    I know I’m not alone on this. I’ve wasted a good $150 on Steam Sales of games that I definitely wouldn’t have bought otherwise, and occasionally stare at their desktop icon thinking “oh yeah, Borderlands, I heard that was good and I own it. Maybe I’ll try that sometime” before I double click RIFT.

    Can’t see how that hurts as it’s $150 into the devs pockets that wouldn’t/shouldn’t have been there.

  • Kagitaar

    The Steam sales are just replacing brick and mortar store sales. If a game has been out for a year, you expect it to drop in price. Add to it that after a certain point, any extra sales are pure profit, so you make more money overall getting all the people who were deterred by the price before.

  • Eggers

    EA is Evil.

  • http://www.facebook.com/nik.nieuwenhuis Nik Nieuwenhuis

    I never minded steam. But do not want to use Origin. I think the people who buy the games should have the choice to choose what program they want to use. Me and a couple of friends just do not buy EA games anymore because we do not want to get stuck on Origin. Yes I know that if I buy games on steam I am stuck with steam, but at least steam is user friendly and has a huge library of games.

    • pc11

      Why do people keep saying over and over they are “stuck” with Steam???

      Something like 80% of the games in their catalogue dont even require you to have Steam running! Just go to the damn folders and click the executable file. I guess being born in the DOS era of computer gaming gives you a different skill set…

  • http://twitter.com/Failattu Kalle Sirkesalo

    EA is best to talk. Would not have bought Mass Effect 3 without Steam sales I just noticed it in sale summer before ME3 release and bought them and got hooked on them was like awesome would have never played them if not for Steam sale. BF3 not buying cause of Origin I just don’t like Origin (dunno why cause I love Steam). Currently in this sales bought about 10-15 games already its about 100euros worth. And I know that in my friend circle there is NO piracy cause of Steam we just see it so easy to buy game from Steam and go play cause it works and its reasonable priced, it comes out fast, We dont need to go outside to get it and we can install it to any pc we want to play after buying it. And of course the aspect to compete who has most valuable steam account. And also the drunk buyings of I REMEMBER THIS GAME WHEN I WAS YOUNG! things goddamn you steam for bringin all the classics back to eat my money :D

    • http://twitter.com/Vazzaroth Josh Hagood

       Hmm, good point.

      It’s ironic that a heavily Sequel-driven company is complaining about cheaper back-catalogue games. The only way to get more fans for an IP is to establish them with the early titles, and you’ll get the fence-sitters to buy in the cheaper and cheaper those titles get.

      Man, I always thought their statement about cheapening IP was dumb, but now I realize it’s absolutely moronic coming from EA in particular.

  • http://www.facebook.com/profile.php?id=506728308 Julian F’n Mugnieco

    Electronic Arts puts the EA in backpedal.

  • Krzysztof Kotarba

    It would be great if EA allow ppl to decide if they want origin or not… but no, you are forced to use this crap, noone likes to be forced to do something. EA sucks, shame they destroy almost all good companies they buy.

  • M H

    I don’t understand EA.  It isn’t like we all need another reason to look at there logo on a product to walk away.  Let the truth be told, I might buy a EA game on Steam, but from Origin never in my life because it’s a piece of junk.  

    Don’t get me wrong when Steam was young it was clunky as all heck as well.  But it was always a gamer’s market and not a corporate show case shelf to itself and its own greatness (yes, that is what I feel Origin is).  Not to mention Steam didn’t have a competitor to really blue print itself after because it was a much “newer” concept at the time.  Valve has always treated their IP’s to the same sales EA complains so much about.  I guess in the end the difference is Valve wants people playing the games, enjoying the games, in fact roping you into new IP’s you hadn’t played before.  EA just wants to see your CC# and 60 bucks pending from it.  Really nothing more as long as you keep coming back.

    Happens all the time for me.  I see a new game coming out in the next few months. Surprise, surprise Steam just tossed up the first two games in the series for sell.  I check them out, end up buying them both, and then buying the latest release, at full price mind you, and would likely purchase the next upon release.  Not to mention.. heh.. I keep buying them from Steam so they get to keep making their cut as well.  Sounds like “business” to me that makes total sense.  It even roped me into the Mass Effect IP.  So how about them cookies EA.  Without Steam I would have never even played those games or bought them at all.

  • Moriarty_Jones

    I don’t think EA are in any position to lecture anyone.  And devaluing IP’s , don’t make me laugh.

  • http://www.facebook.com/people/Michael-Johnson/1353890372 Michael Johnson

    EA are children.
    Valve should have just ignored them like a mother ignores an unruly toddler.

    • http://twitter.com/Vazzaroth Josh Hagood

       This is potentially the worst parenting advice I’ve ever heard…

  • Kelly Jolliffe

    While I haven’t bought as much

  • Kelly Jolliffe

    While I haven’t bought as many games as I did last summer sale (for obvious reasons), Steam’s got me in such a spending frenzy that I pre-ordered three games (Orcs Must Die! 2, Torchlight 2, Dark Souls) at full price that I probably wouldn’t have otherwise. (At least, not the latter two.) So, yeah, EA can shove it.

    Oh, and Origin sucks. Yeah…

  • http://pulse.yahoo.com/_P4HMCB2HFGNQRRKG5SO33L5LCQ Age Of Majority

    Just picked up Arma 2 combined operations on steam for 20% off so i can play myself some DayZ. Thanks steam. Screw you EA.

    • pc11

      Too bad you missed it when it was 75% off right at the start of the sale :p

  • http://www.facebook.com/people/Roberto-Rivas/828328057 Roberto Rivas

    you paid for portal 1? I’m pretty sure i got it for free a few months before portal 2 release
     

  • ArsenicSundae

    What EA is missing in their logic is something that Valve figured out years ago.  All numbers aside, gamers LOVE Steam sales and that generates huge amounts of goodwill towards Valve.  The customer satisfaction that Valve is able provide is the one element that EA has never had, never will have, and never will understand.  That’s why Origin will never be able to compete with Steam.

  • http://twitter.com/RedRyben Andrew Schulte

    I stopped buying EA products.  I would say having “EA” on you product hurts more then having a discount.  

  • http://twitter.com/just_izumi Izumi

    Ha, take that EA! ( Sucking and greedy as usual. :P )

    I haven’t brought any EA games in so long. They don’t have any titles that I am interested in and to little of variety for me to care about even going to their store. That and I just don’t want to buy their stuff because I don’t like EA as a company, their support for games and the horrible version of SOPA they backed.

  • DoctorOverlord

    Here we see the difference between a Dilbert pointy-haired upper management type convinced his business/marketing school tripe means something and someone who prefers to look at data more like an engineer or programmer.  

    As long as the latter keep running Valve, they will continue to get more respect than EA from the community.   

  • Draugmahl

    Eh, I have found in recent years, between playing a lot of MMO’s and not having the kind of free time to devote to games that I just don’t tend to play games immediately when I buy them. Because of that, I stopped buying game when they first come out and I tend to buy them when they reach a price I feel is fair for something I’m going to let sit for a while. I’ll end up buying these games I’m moderately interested in eventually (Like the 3rd and 4th assassin’s creed after having played the first two already) so when steam puts stuff like this on sale, it just prompts me to buy them then…for people like me, they’re just getting their money now instead of when the game actually drops to a $20 price point. Also, origin sucks…and i hate that having bought Battlefield 3 from a retailer, that I still have to deal with Origin to play it.

  • http://twitter.com/thekkadvance The KK Advance

    Meh EA is just pissed because they dont have the bulk of games yet so they can put some major itltes up for 75% and there for cant keep up with steam. If they go all out with origin and tie some other companies to origin they will do the same thing with sales and all that. It hurts their digital sales when someone ells can dish out games at much lower price ofc. 

    Funniest of all was the talk ffrom a couple of weeks ago about going free to play in the future which makes these kind of statements kinda funny and hollow. 

    Cheers and have a nice day folks

  • http://twitter.com/borded nathan law

    yeah, i totally hate how steam give me cheap games. it sucks so much?

  • http://twitter.com/borded nathan law

    EA should just start doubling the price on all their games to counter the atrocious efforts of valve to devalue their ip with consumer friend sales, how dare they! Kids, want deadspace 3 for christmas?  its usually $99 but our IP safe Christmas sale you can pick it up for just $199 its literally twice as good! that’s how it works right?

  • http://twitter.com/Vazzaroth Josh Hagood

    Mass Effect 3. I don’t give half a sheit about the story. I’ve never liked it much since ME1, and I have no investment. That multiplayer demo, though, was SUH-WEET. No way in hell am I going to pay full price for multiplayer only though. If it was on steam, I’d hold out for a $10 sale, but since it’s Origin only, I just gave up alltogether.

    If they were really smart, they’d go the way of Warhammer 40K: Dawn of War’s Last Stand mode and just bundle the MP by itself for 10-15$. Which I still might not buy since it will apparently never go on sale. ಠ_ಠ

  • Revanhavoc

    This whole debate is counter factual and no matter what kind of data Valve wants to present their conclusions are coloured by their business model and conjecture, just the same as EA. 

    The reason I say the debate is counter factual is because there is absolutely no way to accurately calculate or even really estimate the number of potential “lost sales” that the future possibility of a discount could represent. In other words, we have no way to know how many situations occur like Jason described where he knew deep down a game would be cheaper later so he decided to wait it out.

    Similarly we have no way to know if potential steam discounts may temporarily suspend a purchase, and whether or not that suspension will eventually lead to some future transaction.

    What I’m saying is that both companies are talking their own book. Obviously they both have competing distribution outlets (origin/steam) and so they are going to have fundamental differences in how to maximize profit.

    One last point is how translucent EA becomes when they basically come out and say “Yeah…you’re not getting any discount we are in the profit maximizing business…” in not so certain terms.

    Sadly that philosophy is having a negative impact on some of their recent releases.

    And Valve…Don’t talk again until the words coming out of your mouth are:

    HALF-LIFE 3

  • http://www.facebook.com/profile.php?id=1260066056 Steven Diaz

    @Jason Winters  I don’t really get what you mean.  I actually buy games I wouldn’t normally buy due to the fact that they go on sale and so do my friends.  Without those sales, I would have about 15-25 less games.

    • http://twitter.com/cosmo_swag Randy

      there is a reply button for a reason

  • Nhoj1983

    Have to say EA needs to realize that steam has the market and not offering the same pricing is going to hurt origin in the long run.  Other than that though I’ve no issue with Origin.  It’s not a bad platform.. far better than say gamespot’s.  It’s just that people are entrenched in steam.  All those scary rumors about origin is the exact same thing I heard about steam five years ago.  If the game I want’s going to be only on origin.. it’s not going to deter me in the least but Steam is my go to platform.

  • http://www.facebook.com/people/John-Delaney/100000062870510 John Delaney

    Everything is worth what its purchaser will pay for it.

    Maxim 847 – Publilius Syrus

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