A video game will go through seven stages of development during its life cycle, including planning, pre-production, production, testing, pre-launch, launch and post-production. Once released, video games are competing for players’ attention and with so many games to choose from, it can be difficult to maintain interest. Working with a distribution partner during the latter stages of a game’s development life cycle instead of relying on a giant such as Steam will provide publishers with numerous strategic advantages and ensures their game remains relevant several months after its release.

Vadim Andreev, CEO and co-founder of Rokky, a global game distribution platform that connects publishers and stores worldwide, breaks down the first year of sales for a video game once it’s launched and discusses the benefits of working with a distribution partner such as Rokky.

How third party distribution platforms effectively compete against giants like Steam

On average, a game on pre-order sells approximately 1% of all sales for the entire year two months before release. This then increases to 4% of all sales for the year two-to-four weeks before release. The peak of pre-order sales starts a week before release and publishers can expect to sell 12% of all sales for a game’s first year during this period. During the pre-order period, Rokky makes an average of 16% of a game’s annual sales, highlighting the importance of making a game available to pre-order.

When looking at the release day, Rokky will make another 8% of all sales for the year. In comparison, VG Insights shows that, on average, 12% of all sales are activated on Steam during a game’s release, possibly because some sales flow into the first day after release due to VG Insights’ data recording features. Rokky then makes another 15% of all sales for the year in the first week after release, according to the company’s analysis. Concurrently, Steam accounts for 22% of all sales for the year in the first week.

Sales then gradually start to decline and in the first two-to-four weeks after release, they make up 7% to 4% per week for Rokky and 14% to 5% for Steam. During the pre-order period, release, and the first month of sales combined, Rokky sells 56% of a game’s copies for the entire year, while Steam sells approximately 61%.

In the remaining ten months of the year, almost half of all sales for the year are made, with Rokky making 43% and Steam 38%. At the same time, the trend line on the following graph shows that sales through the third party distribution platforms generally fade more slowly than through Steam.

Third party distribution platforms provide a more flexible and consumer-oriented approach

Working with a distribution partner like Rokky can provide a publisher with several strategic advantages as third party distribution platforms can expand market reach, adapt to changes in demand, minimise the risks associated with international sales, and much more:

• Market Restrictions: In some countries and regions, there are strict government restrictions on the sale of video games, making it difficult to sell directly through platforms like Steam. Distributors like Rokky who have experience in these markets can successfully overcome such barriers and provide access to new audiences.
• Less Flexible Pricing: Steam cannot always respond promptly to changes in demand for a game and offer timely discounts or special offers. Distributors, on the other hand, can adapt more quickly to market conditions and apply more flexible pricing strategies, helping to increase sales.
• Localization and Cultural Adaptation: Distributors working in specific regions better understand local cultural features and can offer adapted content, including game localization, marketing campaigns, and user support in the native language, which increases a game’s appeal to local players.
• Marketing Support: Distributors often provide additional marketing resources such as advertising, PR campaigns, and participation in local events and exhibitions. This can significantly increase a game’s visibility and attract more users than standard marketing efforts on Steam.
• Logistical Support: In the case of physical copies of games, distributors provide all the necessary logistical support, including production, warehousing, and delivery, relieving publishers of a significant portion of organisational tasks and allowing them to focus on content development.
• Legal and Financial Support: Working in international markets may require knowledge of local laws and financial requirements. Distributors with experience in various jurisdictions can provide legal and financial support, minimising risks and ensuring compliance with legal requirements.
• Broader Audience Reach: Distributors often have established connections and partnerships with local retail and online stores, allowing them to reach a wider audience and sell games through multiple channels, thereby increasing sales and brand recognition.

The benefits of working with a distribution partner is further evidenced by the fact that, in percentage terms, the share of sales through the distributor relative to total sales on Steam increases over time. The following graph shows the change in the percentage of sales through Rokky compared to total sales on Steam over the 12 months following the game’s release. However, it should be noted that the data presented in the graph represents aggregated values for the top-selling games in Rokky’s database. Individual cases indicate that the distribution of values for each game can vary significantly.

At the time of release, the percentage of sales through Rokky reached a peak of about 4%. During the first week after release, there is a sharp decline in the percentage of sales to just below 1%, which remains stable throughout the first month. When looking at the first month, the percentage of sales starts to gradually increase, reaching 0.78% at the end of the second month and 1.02% by the end of the third month.

From the third month, there is a noticeable fluctuation in the percentage of sales, with an overall upward trend, peaking in the sixth month. Usually, the first promotions for the game begin at this time. According to Geekyminded, it takes 70 days on average before a game’s first sale.

Starting from the sixth month, the percentage of sales shows even more significant growth, reaching new peaks in the ninth month at 2.87%. Sales rebound in the tenth month due to people taking advantage of significant discounts in previous periods. By the end of the twelfth month, the percentage of sales through Rokky stabilised at 1.55%.

Despite fluctuations in the percentage of sales, the overall trend indicates a growth in the share of sales through the distributor Rokky relative to total sales on the Steam platform during the first year after a game’s release. The growth in the share of sales through the distributor relative to total sales on the Steam platform is based on several factors:

• Price Competition: Stores through which the distributor sells a publisher’s games actively use their margins to compete on price. They can offer various discounts and promotions, making their offers more attractive to buyers compared to fixed prices on Steam.
• Promotions and Marketing Support: Distributors and their partner stores often run various promotions, sales, and special offers, drawing attention to products and stimulating sales growth.
• Localization and Adaptation to Regional Markets: Distributors can better adapt their offerings to the specific requirements and preferences of local markets, helping to increase sales in regions where Steam is not as popular or lacks sufficient marketing support.
• Variety of Payment Methods and Delivery Conditions: Distributor stores can offer more flexible and diverse payment methods, as well as more convenient delivery conditions, making purchases more accessible and convenient for various categories of consumers.
• Investing in Customer Service: Distributors often invest in improving the quality of customer service, providing better support, which helps retain customers and increase sales.

Thus, Rokky successfully competes with the Steam platform, increasing its share of sales in the overall structure through a more flexible and consumer-oriented approach. The demand for games through third party distribution platforms such as Rokky decreases much more slowly compared to Steam, thereby providing publishers with stable and long-term revenue. Stores, competing on price and offering various promotions, can maintain interest in a game several months after its release.

For more information on how to make the most of the digital distribution for your next game, visit https://rokky.io.