During his DICE keynote, Gabe Newell emphasised once again that if you provide "ongoing value to your customers" then 'word of mouth' will do the rest.
DRM does more harm than good too he says, citing Steam's goal of forming a close bond between creator and customer the way forward. Over 20 million connect to Steam.
"The old way was using intermediaries," Newell said, reports Gamasutra. "The product would be sold through retailers or other intermediaries."
"You were really focused on spending three years to build value for your customers to get through the friction of the retail experience."
Keep your focus on entertainment as service, alternatively, "you will use your customer base to reach new customers, and your focus is much more about providing ongoing value to your customers – maybe every three weeks, or even more often than that."
Newell touched on piracy too saying the whole issue of price isn't entirely true as most PC gamers spend big bucks on their gaming rigs. "In the PC audience, these people are spending thousands of dollars on their PCs and their internet connectivity. They are perfectly happy to spend money, so that’s not the issue."
"But when it comes to the service, that’s where the pirates are way ahead of us." For example he said wanting to get a hold of a Dr. Who television series on DVD wasn't possible legally in his region, and this is how pirates win.
Click here for Gamasutra's full brief on Gabe Newell's DICE keynote speech.
Has Valve nailed it on the head? Is Steam the magic formula for the future? With over 350 plus PC titles available with major publishers on board, and the service available worldwide in 21 different languages, something is sure going right for them.
