Are you actually confused about the information asymmetry in video game purchases? Given your weird movie references I assumed you were just trying to change the topic.
I’ll try to use small words. Before you play a game, you don’t know if it’s goo;, just as used car buyers don’t know if the used car is a lemon. Without a buyer protections that drags the price of good games down just as lemons drag down the price of used cars. Akerlof goes into the proof for the car part of this in his paper.
“Lemon laws” mostly solve that problem for cars. Steam mostly solves that problem for video games. That requires trust. You may not trust Steam but millions of people do. They’ve repeatedly made decisions that benefit gamers so gamers flock to them. Thats why they buy so many games from Steam even when they’re available elsewhere. If they broke that trust they’d probably never get it back but, until then, their net effect is to increase revenue for studios by providing a market where people are comfortable enough to spend more money.
There’s simple and there’s oversimplified. The element your missing is “trust”. The reason gamers go to Steam is because we trust their reviews and return policies.
The other storefronts haven’t built that trust. Most gamers have the experience of trying other storefronts, hating them, and going back to Steam.
People don’t trust Gabe because he’s a billionaire, they trust him because he consistently makes decisions that gamers benefit from. No other game store CEO can claim that with a straight face.
Are you actually confused about the information asymmetry in video game purchases? Given your weird movie references I assumed you were just trying to change the topic.
I’ll try to use small words. Before you play a game, you don’t know if it’s goo;, just as used car buyers don’t know if the used car is a lemon. Without a buyer protections that drags the price of good games down just as lemons drag down the price of used cars. Akerlof goes into the proof for the car part of this in his paper.
“Lemon laws” mostly solve that problem for cars. Steam mostly solves that problem for video games. That requires trust. You may not trust Steam but millions of people do. They’ve repeatedly made decisions that benefit gamers so gamers flock to them. Thats why they buy so many games from Steam even when they’re available elsewhere. If they broke that trust they’d probably never get it back but, until then, their net effect is to increase revenue for studios by providing a market where people are comfortable enough to spend more money.
Lmfao, here’s smaller words big brain:
Steam has reviews and accepts returns.
👏 Congratulations.
Amazing.
How unique.
Now answer how their 30% fee of every single game’s revenue is justified based on their costs to prove that they’re not abusing their monopoly.
Oh, what is that? Every competitive app storefront everywhere, charging far less then that?
Congratulations on defending a billionaire’s monopoly.
There’s simple and there’s oversimplified. The element your missing is “trust”. The reason gamers go to Steam is because we trust their reviews and return policies.
The other storefronts haven’t built that trust. Most gamers have the experience of trying other storefronts, hating them, and going back to Steam.
People don’t trust Gabe because he’s a billionaire, they trust him because he consistently makes decisions that gamers benefit from. No other game store CEO can claim that with a straight face.