At the core of the PC gaming landscape lies an unexpected paradox: while this medium is celebrated for its openness, a singular storefront reigns supreme. This dominion belongs to Valve and its renowned platform, Steam. Since its inception two decades ago, despite numerous contenders entering the fray, none have managed to challenge Valve’s stronghold over the PC gaming market. One of the notable attempts came from Amazon, whose former Vice President recently shared insights on the reasons behind the lack of success in dethroning Steam.
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Ethan Evans, who served as VP of Prime Gaming at Amazon until his retirement in 2020 after a remarkable fifteen years, candidly recounted the challenges they faced in a LinkedIn post last week. “Despite our substantial size—over 250 times larger—we consistently fell short in our efforts to disrupt Steam’s gaming empire,” he reflected. “In the end, it was like David versus Goliath, and Goliath emerged victorious.”
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Evans outlined three key strategies that Amazon implemented in its quest to capture a slice of the PC gaming market from Steam’s extensive reach. The first move involved acquiring Reflexive Entertainment, a modest PC game store with aspirations to expand its offerings. Next, Amazon sought to leverage the immense popularity of Twitch by creating its own dedicated PC game store, aiming to funnel players toward this new platform. Lastly, there was Luna, Amazon’s venture into game streaming, which represented yet another effort to carve out a niche in the competitive gaming arena.
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As Evans reflected on these initiatives, it became clear that even with formidable resources and innovative ideas, the shadow of Steam loomed large, illustrating just how challenging it is to break through in such a fiercely contested space.
Despite numerous attempts, none of the initiatives made a significant impact. The efforts of major publishers like EA, Ubisoft, and Bethesda to create their platforms by restricting access to PC games through cumbersome proprietary launchers ultimately fell short. Even the Epic Games Store, which debuted in 2017, has primarily served as a launcher for Fortnite, with its rivalry against Steam taking a backseat. Although Epic has generously offered countless free games each year simply for logging in, its storefront seems to have hit a plateau—though exciting new features are anticipated in 2025.
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In his reflections, former executive Evans acknowledged a crucial miscalculation: “We underestimated what truly drew consumers to Steam,” he noted. “It wasn’t just a marketplace; it functioned as a social platform, a digital library, and a showcase for achievements—all seamlessly integrated. Our assumption at Amazon was that sheer size and visibility would naturally attract users, but we failed to appreciate the strength of established user habits. We rushed into investments without thoroughly testing our core assumptions. The reality is that gamers already had their solutions in place, and they weren’t inclined to switch just because a new option appeared on the horizon.”
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What Evans conveys is quite revealing: Amazon believed that simply being Amazon would be enough to draw users in. However, if the company truly intended to compete with Steam, it needed to provide compelling reasons for players to leap. “We should have aimed to create something significantly superior, but we didn’t succeed,” he admitted. “Moreover, we needed to validate our understanding of our customers before embarking on development—but we overlooked that step as well. Just because you have the resources to create something doesn’t guarantee that people will embrace it.” This reflection serves as both praise for Valve’s achievements and a critique of the disconnect often found within executive decision-making.
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In essence, the story highlights the complex dynamics of consumer loyalty and the challenges faced by newcomers in an established market. It reminds us that innovation must be grounded in a genuine understanding of user needs and preferences rather than mere ambition or scale.
In the vast landscape of digital gaming, Steam stands as a colossal figure, casting a long shadow over its rivals. Despite the numerous valid grievances levelled against it—such as the glaring absence of moderation, clunky discovery features, forums plagued by extremist content, and an infrastructure that feels increasingly outdated—Steam manages to function remarkably well. It’s a paradox, really; for all its flaws, it serves as a central hub for gamers around the globe.
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What truly binds users to Steam is the intricate ecosystem it has cultivated. The social networking elements keep players connected while seasonal sales continually flood their libraries with an enticing array of budget-friendly titles. Each year, it has become the stage where unexpected gems like Balatro and Palworld spring to life, capturing the attention of gamers everywhere. Beyond just facilitating purchases, Steam plays a pivotal role in shaping the gaming attention economy, often leaving titles that debut as timed exclusives on platforms like the Epic Games Store languishing in obscurity.
It’s a sobering thought: one company holds such sway over an industry that has rapidly become one of the most popular forms of entertainment. This monopolistic grip can feel disheartening, especially when memories linger of a time when competition meant juggling multiple launchers and windows just to play a single game. The prospect of returning to that fragmented reality is far from appealing.
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Perhaps, instead of vying for dominance in a crowded market, more companies could take a page out of GOG’s playbook and champion a future free from digital rights management. While such a scenario may seem far-fetched, it’s not any less plausible than dislodging Steam from its current throne. In this ever-evolving narrative of gaming, the question remains: will we continue to accept the status quo, or will innovators rise to reshape the landscape?
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