Gabe Newell on PC Gaming
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"This meeting that we're having here really should be done by Intel or Microsoft, companies that are a lot more central to the PC ecosystem, rather than just hearing about our perspective on these issues."
This kicked off a two-hour presentation, in which a number of Valve employees made the case for the PC as a robust, innovative platform.
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According to Gartner Group data, there are over 260 million online PC gamers, with 255 million new PCs being sold in 2007. Steam alone has 15 million connected gamers, with 1.25 million peak connected gamers, and 191% year-over-year growth; Valve was quick to point out that Steam represents just one of many online distribution systems.
"This is a market that dwarfs the size of any of the proprietary closed platforms," Newell said. He noted that the vast difference in scale between PC and console platforms means that PC continues to be the platform with the most capital investment, allowing it to drive the innovation and technology development that eventually trickles down to consoles.
Newell then cited DFC Intelligence data showing that, while worldwide retail PC game sales have been relatively flat since about 2001, PC online sales have continually grown - that segment has traditionally not been tracked by widely-cited firms like NPD. With Valve's own products, it expects online sales to surpass retail sales within the next three months.
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He stressed the importance of recognizing the size of the global market, particularly since digital distribution removes traditional barriers associated with retail games, such as shipping-related concerns.
Certain established markets like Germany and the Nordic countries, as well as emerging markets such as China and Russia, are, as Newell puts it, "leapfrogging the console generation" and being largely driven by the PC. Certain markets that can be difficult to reach via retail means can be highly accessible through digital distribution.
